VEON Ltd. (VEON): History, Ownership, Mission, How It Works & Makes Money

VEON Ltd. is a global digital operator that has successfully navigated complex frontier markets, but are you clear on how its massive digital pivot is reshaping its financial profile? With operations spanning five core segments-Pakistan, Ukraine, Kazakhstan, Bangladesh, and Uzbekistan-the company serves over 152 million mobile subscribers and has seen its direct digital revenues surge by 63.1% year-over-year in Q3 2025 to $198 million, fundamentally changing its revenue mix. This rapid shift, plus the strategic listing of Kyivstar Group Ltd., which valued VEON's 89.6% stake at $2.5 billion, means the old telecom valuation models simply won't work anymore. You need to understand the history of this transformation, the new revenue streams from platforms like JazzCash, and the real impact of its Starlink Direct-to-Cell partnership to defintely grasp its future value.

VEON Ltd. (VEON) History

You need to understand that VEON Ltd.'s story is one of constant, often dramatic, transformation, not a linear path. The company you see today-a digital operator focused on emerging markets-is the result of a massive strategic pivot away from its original roots as a Russian telecom giant. Its history is a series of bold mergers and calculated divestitures that culminated in a complete geographic and business model overhaul by November 2025.

Given Company's Founding Timeline

Year established

The corporate entity, VEON Ltd., was officially established in 2009 as VimpelCom Ltd. through the merger of two major telecom assets. However, its foundational business, PJSC VimpelCom, which operates under the Beeline brand, was actually founded much earlier, in 1992.

Original location

VimpelCom Ltd. was incorporated in Bermuda, but its initial operational headquarters were located in Amsterdam, the Netherlands. In a significant move, the company officially relocated its headquarters to Dubai, United Arab Emirates, in late 2024 to better align with its current focus on high-growth emerging markets in Asia and Eastern Europe.

Founding team members

The original Russian telecom predecessor, PJSC VimpelCom, was co-founded by American businessman Augie K Fabela II and Dmitry Zimin. The 2009 formation of VimpelCom Ltd. was a merger orchestrated by the major shareholders of the time, Norway's Telenor and Russia's Alfa Group (through its subsidiary Altimo). Today, Augie K Fabela II serves as the Chairman, which is defintely a rare full-circle moment for a founder.

Initial capital/funding

The 2009 VimpelCom Ltd. formation was a major asset merger, not a traditional venture capital funding round. It combined PJSC VimpelCom and Kyivstar, creating a massive new entity. To give you a sense of scale, the combined pro forma net operating revenues for the year ended December 31, 2008, were already around $12.6 billion. The transaction involved Telenor and Altimo contributing their respective stakes in the two companies.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The most significant transformations for VEON Ltd. all map to a single, clear objective: shedding legacy telecom baggage to become a pure-play digital growth engine. This is a massive shift, and it's why the company looks so different now than it did five years ago.

The strategic exit from Russia in October 2023 was the single biggest change, which immediately de-risked the business and allowed management to focus on its high-growth markets like Pakistan (Jazz) and Ukraine (Kyivstar). This move alone drastically changed the revenue mix and investor perception.

The pivot to a digital operator model is now driving the numbers. For the third quarter of 2025, total revenue reached $1,115 million, with EBITDA hitting $524 million. But the real story is in the digital growth:

• Direct digital revenue grew by 63.1% year-over-year in Q3 2025.
• This digital revenue now represents 17.8% of the Group's total revenue.
• Acquired Uklon, a leading ride-hailing and delivery platform, in March 2025 for $158 million, immediately boosting its digital services portfolio.

Here's the quick math: growing digital revenue at 63.1% while overall revenue is up 7.5% in Q3 2025 shows exactly where the future cash flow is coming from. The decision to list its Ukrainian subsidiary, Kyivstar Group, on the Nasdaq in 2025 is a masterstroke of capital allocation, valuing VEON's stake at $2.5 billion and providing a clear valuation benchmark for the rest of the portfolio. That's how you crystallize value for shareholders.

To be fair, this aggressive transformation still faces currency and geopolitical risks in its frontier markets, but the focus is sharp. The company's move to sign a global framework agreement with Starlink in 2025, making it the first operator with a multi-country Direct to Cell partnership, signals a commitment to leapfrogging traditional infrastructure challenges. You can read more about the financial implications of this strategy Breaking Down VEON Ltd. (VEON) Financial Health: Key Insights for Investors.

VEON Ltd. (VEON) Ownership Structure

VEON Ltd.'s ownership structure is a classic example of a publicly traded company with a dominant, controlling shareholder, which is a critical point for any investor to understand. This concentration of power means strategic decisions are heavily influenced by a single entity, Letterone Investment Holdings S.A. (L1), even though the company is listed for public investment.

VEON Ltd.'s Current Status

The company is a publicly traded digital operator, incorporated in Bermuda and headquartered in Dubai, United Arab Emirates. As of November 2025, VEON is exclusively listed on the NASDAQ Capital Market in New York under the ticker symbol VEON, having completed its delisting from Euronext Amsterdam in late 2024. This consolidation on a major US exchange simplifies the trading landscape and aims to boost liquidity, but it also means the company's reporting and governance must strictly adhere to US Securities and Exchange Commission (SEC) requirements.

The strategic move to Dubai brings the executive team closer to its core growth markets in Central and South Asia, including Pakistan, Ukraine, and Kazakhstan. This is a very clear signal about where the company sees its near-term revenue and customer growth coming from. You can get a deeper dive into the investor profile by Exploring VEON Ltd. (VEON) Investor Profile: Who's Buying and Why?

VEON Ltd.'s Ownership Breakdown

The ownership is heavily skewed toward its largest shareholder, L1, which holds a significant minority stake that effectively grants it control over the company's direction and board composition. Here's the quick math on who holds the common and voting American Depositary Shares (ADSs), based on the latest canonical data from the March 31, 2025, filings:

This breakdown shows that nearly half of the voting power rests with one entity, which is defintely a key risk factor for minority shareholders, as L1's interests will always be paramount in major decisions, like the USD 100 million securities buyback program commenced in November 2025.

VEON Ltd.'s Leadership

The company is steered by a Group Executive Committee (GEC) and a Board of Directors, bringing together seasoned telecom and digital veterans alongside high-profile political and business leaders. The leadership is focused on transforming VEON into a digital operator, moving beyond traditional connectivity to digital services like financial technology and entertainment.

• Group CEO: Kaan Terzioğlu, who has been the Group CEO since 2021, drives the digital-first strategy across all operating markets.
• Chairman of the Board: Augie K Fabela II, the co-founder of the company, provides continuity and strategic oversight.
• Group CFO: Burak Ozer, who was appointed Group Chief Financial Officer in January 2025, manages the financial strategy and capital structure.
• Board Members: The board includes notable figures like Michael R. Pompeo and Sir Brandon Lewis, who bring significant global experience in policy and governance.
• GEC Expansion: In January 2025, VEON added the CEOs of its Pakistan (Aamir Ibrahim) and Kazakhstan (Evgeniy Nastradin) units to the GEC to better integrate market-level digital growth into group strategy.

What this leadership structure tells you is that the company is governed by a small, influential group with a mandate for aggressive digital transformation, supported by a board with strong geopolitical ties.

VEON Ltd. (VEON) Mission and Values

VEON Ltd.'s mission extends far beyond telecom profits; it's about transforming lives by providing connectivity and essential digital services, viewing communication as a fundamental humanitarian need. This core purpose is grounded in five key values that drive their strategy in dynamic, often underserved, markets.

VEON Ltd.'s Core Purpose

You're looking at a company that is fundamentally a digital operator, but its purpose is deeply social. VEON's entire strategy is built on the idea that access to information and digital tools is not a luxury, but a necessity, especially in their markets. They are committed to delivering on this, which is why their direct digital revenues grew by a massive 63.1% year-on-year in Q3 2025, now making up 17.8% of total revenues. That's real growth tied directly to their purpose.

Official mission statement

The core mission is simple and powerful, focusing on the customer experience and societal impact.

• Provide customers with connectivity, access to information, and other vital digital services.
• Treat connectivity and communication as essential humanitarian needs, whether for connecting with loved ones or seeking reliable news.
• Deliver on the purpose of transforming lives through converged connectivity and digital services.

This mission guides their investment decisions, like the commitment to inject USD 1 billion into Ukraine's digital infrastructure between 2023 and 2027. That's a clear, concrete action that shows their mission is more than just words.

Vision statement

The vision is about driving positive change by connecting millions of customers in emerging markets to the digital world's power. They're focused on turning single-service users into multiplay subscribers-a smart business move that also increases customer stickiness.

• Drive positive change and transform people's lives in dynamic and often underserved markets.
• Focus on three strategic pillars: Digital Operator, Ventures, and Infrastructure, to maximize customer potential across all 1,440 minutes of the day.
• Pursue the AI1440 ambition, which involves creating augmented intelligence-based solutions that enhance human capabilities across their operating markets.

To be fair, a vision like this requires a huge investment in people. The company spent USD 4.4 million on employee training and development in 2024, a defintely material increase from USD 2.6 million in 2023.

VEON Ltd. slogan/tagline

While the formal mission is long, the underlying message is a clear call to action and identity.

• Transforming lives through converged connectivity and digital services.
• We are VEON.

This is a company that is all in on digital, serving over 152 million connectivity customers and approximately 120 million monthly active digital users. If you want to dive deeper into their financial stability and how these values translate to the balance sheet, you should check out Breaking Down VEON Ltd. (VEON) Financial Health: Key Insights for Investors.

VEON Ltd. (VEON) How It Works

VEON Ltd. is executing a pivot from a traditional telecom holding company to a 'digital operator' by bundling converged connectivity with a growing suite of online services across its high-growth frontier markets. This strategy is driving significant growth in its digital ecosystem, which is why Direct Digital Revenue surged by 63.1% year-over-year to $198 million in the third quarter of 2025.

The core business model is simple: use the massive mobile subscriber base-over 150 million connectivity customers-as a platform to cross-sell higher-margin digital products like mobile finance and entertainment.

VEON Ltd.'s Product/Service Portfolio

VEON Ltd.'s Operational Framework

The company operates under a decentralized model, giving significant autonomy to its local operating companies (OpCos) like Kyivstar, Jazz, Beeline, and Banglalink, which allows them to tailor products to specific market needs. This local focus is defintely key to navigating diverse regulatory and cultural landscapes.

Here's the quick math: the operational strategy is designed to free up capital from infrastructure for high-growth digital reinvestment.

• Asset-Light Infrastructure: Continuing the shift toward an asset-light model through tower sales and focusing capital expenditure (capex) on high-speed 4G network modernization. The projected capex intensity for 2025 (excluding Ukraine) is expected to remain within the 17% to 19% range.
• Digital-First Development: Embedding its AI1440 strategy, which involves integrating locally trained large-language-model capabilities into digital platforms to drive inclusive AI innovation and personalized customer experiences.
• Financial Discipline: Maintaining a strong liquidity position, with total cash, cash equivalents, and deposits standing at $1,666 million as of September 30, 2025.

VEON Ltd.'s Strategic Advantages

VEON's primary edge is its dual-engine growth model-a stable, large-scale connectivity business funding an accelerating digital services portfolio in markets with low digital penetration. This is a powerful combination. Breaking Down VEON Ltd. (VEON) Financial Health: Key Insights for Investors

• Digital Momentum: Direct digital revenue growth of 63.1% YoY in Q3 2025 demonstrates successful execution of the pivot, translating connectivity users into high-value digital users.
• Strategic Partnerships: Being the first operator with a multi-country Direct to Cell partnership with Starlink positions the company to offer satellite-based connectivity, enhancing network resilience and reach in frontier markets.
• Unlocking Asset Value: The listing of Kyivstar Group has unlocked significant value, with VEON's 89.6% stake currently valued at approximately $2.5 billion, providing financial flexibility and validating the market value of its core assets.
• Low Leverage: A reduced net debt to LTM EBITDA ratio (excluding lease liabilities) of 1.13x as of September 30, 2025, provides a solid financial foundation for continued investment and shareholder returns.

VEON Ltd. (VEON) How It Makes Money

VEON Ltd. makes money primarily by providing converged connectivity and online services across a portfolio of emerging markets, essentially acting as a global digital operator. The core of their revenue comes from traditional telecom services-mobile voice, data, and fixed-line broadband-but the growth engine is their rapidly expanding suite of direct digital services, which includes financial technology (FinTech), entertainment, and health applications.

VEON Ltd.'s Revenue Breakdown

The company's third quarter of 2025 (3Q25) results show a clear pivot in their revenue mix, with digital services driving nearly all the growth. Total revenue for 3Q25 hit USD 1,115 million, a 7.5% increase year-over-year. The split shows the strategic shift from a pure-play telecom operator to a digital-first company.

The 63.1% year-on-year growth in Direct Digital Revenues-which reached USD 198 million in 3Q25-is the key story here. This includes their FinTech offerings like JazzCash, which saw a 32.6% rise in revenues, showing that the strategy to integrate digital platforms into their connectivity base is defintely working.

Business Economics

VEON's economic model is built on capturing a greater share of consumer spending in high-growth, underserved markets by bundling connectivity with digital platforms. Their ability to manage pricing in inflationary environments is critical.

• Inflation-Beating Pricing: In 3Q25, the company's local currency revenue growth of 11% year-on-year outpaced the weighted average inflation rate of 9.2% across their markets. That's how they maintain fair pricing while still growing the top line.
• Digital Multiplay Uplift: The strategy hinges on moving subscribers to 'multiplay' status-customers using at least one digital platform alongside 4G voice and data. Multiplay customers grew 23.3% year-on-year to 43.5 million in 3Q25 and accounted for 55.4% of consumer revenues, demonstrating the value of bundling.
• Asset-Light Infrastructure: They are pursuing an asset-light operational model, which includes the sale of tower assets and a focus on 4G infrastructure investment. This is reflected in their projected 2025 capital expenditure (Capex) intensity, excluding Ukraine, which is expected to remain disciplined in the 17% to 19% range.

This focus on digital services and disciplined capital allocation is meant to improve their Return on Invested Capital (ROIC) over the long term.

VEON Ltd.'s Financial Performance

The financial health of VEON is showing momentum, driven by operating leverage and cost discipline, as evidenced by the strong 3Q25 results and the raised full-year outlook for 2025.

• Profitability Surge: Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for 3Q25 grew 19.7% year-on-year to USD 524 million, pushing the EBITDA margin up to a robust 47.0%.
• Raised 2025 Outlook: The company raised its full-year 2025 outlook, now expecting local currency EBITDA growth of 16% to 18% year-on-year, up from the previous guidance. They also expect total revenue growth in USD terms for 2025 to be in the 7% to 8% range.
• Debt Management: Net debt, excluding leases, decreased to USD 1,729 million as of September 30, 2025, and the net debt to LTM EBITDA ratio improved to 1.13x. This is a healthy leverage position for a company with significant capital expenditure requirements.
• Cash Generation: Last Twelve Months (LTM) Equity Free Cash Flow (FCF) stood at USD 584 million, providing capital for reinvestment and shareholder returns, including a recently authorized USD 100 million buyback program for ADSs and/or bonds.

For a deeper dive into the balance sheet and cash flow dynamics, you should read Breaking Down VEON Ltd. (VEON) Financial Health: Key Insights for Investors.

VEON Ltd. (VEON) Market Position & Future Outlook

VEON is successfully repositioning itself as a high-growth digital operator, moving past its legacy telecom profile by accelerating digital service revenue, which spiked 63.1% year-over-year in Q3 2025. This pivot, coupled with the strategic listing of Kyivstar Group, shifts the narrative from geopolitical risk to value realization in high-potential frontier markets like Pakistan and Ukraine.

Competitive Landscape

In its core markets, VEON's operating companies maintain dominant or co-leader positions, but the competitive pressure is intense, particularly from rivals backed by state or large international capital. The market dynamics are being reshaped by consolidation, forcing a focus on digital product differentiation over pure connectivity pricing.

Opportunities & Challenges

The near-term trajectory is defined by capitalizing on digital momentum while navigating significant macro risks inherent to frontier markets. You need to watch how quickly they can convert their massive customer base into high-margin digital users.

Industry Position

VEON's standing is unique: it's a digital-first operator in emerging markets, not a legacy Western telecom. The company is the market leader in three of its five largest countries-Pakistan, Ukraine, and Kazakhstan-a strong operational base. The strategy is asset-light, focusing capital expenditure (capex) on high-return digital platforms and 4G/5G network upgrades, not just passive infrastructure. They are guiding for full-year 2025 local currency EBITDA growth of 16% to 18%, a strong signal of operational health despite macro headwinds. They're defintely a high-risk, high-reward play. You can dive deeper into the shareholder structure and motivations by Exploring VEON Ltd. (VEON) Investor Profile: Who's Buying and Why?

• Dominant market share in mobile in Ukraine (47%) and Pakistan (37.1%).
• Net debt (excluding leases) stood at USD 1,729 million as of Q3 2025, reflecting successful deleveraging from asset sales and capital discipline.
• Strategic focus on AI through the AI1440 strategy to embed large-language-model capabilities in its digital platforms.