VEON Ltd. (VEON): BCG Matrix [Dec-2025 Updated]

You're looking for a clear map of VEON Ltd.'s portfolio, and the BCG Matrix is defintely the right tool to quickly assess where capital should flow in 2025. Honestly, the picture is sharp: massive digital momentum, with Direct Digital Services shooting up 63.1% year-over-year in Q3, is pulling the weight, while the core telecom business is barely inching up at +0.1%. We've got a few clear Cash Cows like Pakistan's Jazz funding the show, but the real intrigue lies in the Question Marks-think the high-risk Starlink deal and the newly listed Kyivstar Group, whose cash flow is currently tied up. Ready to see which assets demand investment and which ones you should be looking to divest?

Background of VEON Ltd. (VEON)

You're looking at VEON Ltd. (VEON), which you know is a major player in emerging markets, providing connectivity and digital services across Europe and Asia. The company, formerly known as VimpelCom Ltd., is now headquartered in Dubai and trades exclusively on the U.S.-based NASDAQ stock exchange. As of late 2025, VEON is a digital operator serving nearly 150 million connectivity customers and approximately 120 million monthly active digital users across its footprint.

VEON operates through distinct subsidiaries in its core markets, including Kyivstar in Ukraine, Jazz in Pakistan, and units in Kazakhstan and Uzbekistan operating under the Beeline brand, alongside Banglalink in Bangladesh. Strategically, the company has been focused on its digital transformation, which is clearly reflected in its recent financials. For instance, in the first half of 2025, revenue from Pakistan contributed 37.0%, Ukraine 25.7%, and Kazakhstan 18.4% of the total USD 2.1B generated during that period.

A significant recent development was the listing of its Ukrainian operations, Kyivstar Group Ltd., on NASDAQ around August 2025. VEON retains a substantial 89.6% stake in this entity, which was valued at USD 2.5 bn based on the November 7 closing price. This move, coupled with the completion of the sale of its Kyrgyzstan operations in August 2025, shows a clear focus on streamlining the portfolio.

Looking at the latest reported numbers, VEON Ltd. posted third-quarter 2025 results that showed strong operational momentum. Q3 2025 revenue reached USD 1,115 mn, marking a 7.5% year-over-year increase in USD terms. More impressively, EBITDA grew by 19.7% YoY to USD 524 mn, pushing the EBITDA margin up to 47.0%. The digital push is real; direct digital revenues surged 63.1% YoY to USD 198 mn, now accounting for 17.8% of the total revenue base.

Financially, the company appears much more stable; management has concluded that the material uncertainty regarding its ability to continue as a going concern no longer exists. As of September 30, 2025, total cash, cash equivalents, and deposits stood at USD 1,666 mn, while net debt (excluding lease liabilities) was USD 1,729 mn. Based on this strong performance, VEON raised its full-year 2025 EBITDA outlook to a growth range of 16-18% in local currency terms.

VEON Ltd. (VEON) - BCG Matrix: Stars

You're looking at the segments of VEON Ltd. (VEON) that are clearly leading their respective markets while operating in high-growth environments. These are the Stars; they demand capital to maintain their lead, but they are the future Cash Cows if the market growth sustains or slows favorably. Honestly, these units are where the strategic investment dollars need to go right now.

The performance in Direct Digital Services is a prime example of a Star quadrant placement. We see 63.1% YoY revenue growth in Q3 2025, which definitely signals a rapidly expanding market where VEON Ltd. (VEON) holds a strong position. This high growth rate means we're spending cash to capture market share, but the return on that investment, in terms of market penetration, looks promising.

The overall digital shift within the Group is significant, showing that these Star segments are becoming a larger part of the whole picture. Digital revenue now contributes 17.8% of total Group revenue. That's a solid jump from just 12% a year ago. It shows the strategy to push digital adoption is working, converting market activity into measurable financial impact.

Here's a quick look at the key metrics defining these high-potential areas as of the third quarter of 2025:

• Direct Digital Services revenue growth: 63.1% YoY in Q3 2025.
• Digital revenue share of Group revenue: 17.8%.
• Financial services (JazzCash) revenue growth: 32.6% in Q3 2025.
• Total digital Monthly Active Users (MAUs): 143.3 million.

Within the digital ecosystem, financial services, specifically JazzCash, is another area showing Star characteristics. The revenue for financial services grew by 32.6% in Q3 2025. That's a high-growth vertical, and maintaining that momentum is key to solidifying market leadership there.

The sheer scale of user engagement underpins the high market share claim for these digital offerings. Total digital Monthly Active Users (MAUs) reached 143.3 million. That number demonstrates strong adoption and a substantial market presence that competitors will find tough to challenge head-on.

To put these Star segment metrics side-by-side, look at this comparison:

If VEON Ltd. (VEON) can keep investing effectively to sustain this market share as these markets mature, these units will transition smoothly into Cash Cows, generating significant free cash flow without the same heavy promotional spend required today. Finance: draft capital allocation plan for Q4 2025 digital expansion by next Tuesday.

VEON Ltd. (VEON) - BCG Matrix: Cash Cows

The Cash Cows quadrant represents established business units operating in mature markets where VEON Ltd. maintains a high market share. These units are characterized by strong cash generation with minimal need for heavy investment to maintain their position.

Traditional Telecom and Infrastructure remains the bedrock of VEON Ltd.'s financial performance. This core segment generated USD 917 million in revenue for the third quarter of 2025 (3Q25). This figure represents the bulk of the Group's total revenue of USD 1,115 million for the same period.

The growth profile for this mature segment reflects its Cash Cow status. Revenue growth in this core segment was low, reported at only +0.1% year-over-year (YoY) in 3Q25. This low growth, coupled with high market share, allows for lower promotional and placement investments, focusing capital instead on efficiency improvements.

Key operational highlights supporting the Cash Cow classification for VEON Ltd.'s major assets include:

• Pakistan (Jazz) remains a market leader and contributes the majority of VEON Ltd.'s total revenue base.
• The operational separation of JazzCash was completed during 3Q25.
• Cash and cash equivalents and deposits included USD 282 million related to banking operations in Pakistan as of September 30, 2025.

Kyivstar in Ukraine is identified as a major, high-value asset within this category. The strategic importance and market leadership of Kyivstar are underscored by its recent listing activity. Following the listing, VEON Ltd.'s 89.6% stake in Kyivstar Group is valued at USD 2.5 billion, based on the November 7, 2025, closing price of USD 12.16 per share. The initial transaction assigned a pro-forma valuation of USD 2.21 billion to Kyivstar at closing, though an independent DCF valuation estimated its equity value at USD 2.4 billion.

Here are the key financial metrics for the Traditional Telecom and Infrastructure segment in 3Q25:

VEON Ltd.'s management is focused on maintaining the productivity of these Cash Cows. The Group's overall EBITDA margin improved by 480 basis points YoY to 47.0% in 3Q25, reflecting scale efficiencies and continued cost discipline, which is a key action for 'milking' these assets.

VEON Ltd. (VEON) - BCG Matrix: Dogs

Dogs, are units or products with a low market share and low growth rates. They frequently break even, neither earning nor consuming much cash. Dogs are generally considered cash traps because businesses have money tied up in them, even though they bring back almost nothing in return. These business units are prime candidates for divestiture.

Dogs should be avoided and minimized. Expensive turn-around plans usually do not help.

Non-core, low-growth assets in smaller markets with limited scale advantages represent the Dog quadrant for VEON Ltd. (VEON). For instance, certain European operations fall into this category due to highly saturated conditions. The Italy market share stood at 3.2%, and the Netherlands market penetration was reported at 4.7%, with an average market growth rate in that region constrained to approximately 0.5%. These low-growth, low-share positions tie up capital without offering significant upside potential.

The completed sale of Beeline Kyrgyzstan exemplifies a strategic exit from a low-return market, aligning with the strategy to focus on larger markets. VEON Ltd. (VEON) completed the sale of its 50.1% indirect stake in Sky Mobile LLC (Beeline Kyrgyzstan) to state-owned Open Joint Stock Company Eldik Bank in August 2025. The original agreement, announced in March 2024, valued Beeline Kyrgyzstan's business at 3.4x 2023 EBITDA (pre-IFRS16). For fiscal year 2023, Beeline Kyrgyzstan's total revenue was US$56 million, and its EBITA was US$22 million, making it the lowest revenue contributor to the Group compared to other operations. The original transaction was valued at US$32 million.

Legacy fixed-line or older 2G/3G infrastructure that requires maintenance but yields minimal growth also fits the Dog profile, as these assets often have lower profitability compared to digital services. In 2023, the Legacy Segment EBITDA Margin was reported at 12.3%, with an Operating Expenses Ratio of 68.5%. This contrasts sharply with the Group's overall EBITDA margin of 47.0% in Q3 2025.

Furthermore, any country operations where VEON Ltd. (VEON) holds a distant third or fourth market position can be categorized as Dogs if growth is stagnant. Specific market share figures from 2024 for certain regions noted underperforming operations include Russia at 23.6%, Pakistan at 17.9%, and Bangladesh at 12.5%, all associated with indicators like low profitability or marginal growth.

• Non-core, low-growth assets in smaller markets with limited scale advantages.
• The completed sale of Beeline Kyrgyzstan, a strategic exit from a low-return market.
• Legacy fixed-line or older 2G/3G infrastructure that requires maintenance but yields minimal growth.
• Any country operations where VEON holds a distant third or fourth market position.

VEON Ltd. (VEON) - BCG Matrix: Question Marks

Question Marks are those business units operating in high-growth markets but currently holding a low relative market share. These units typically consume significant cash to fund their growth potential, which could eventually see them transition into Stars. For VEON Ltd., several key strategic initiatives and specific operating environments fit this profile as of late 2025.

The overall VEON Group reported total cash, cash equivalents and deposits of USD 1,666 million as of September 30, 2025, with USD 653 million held at the HQ level. Group Capex for the trailing twelve months (LTM) was 21.6% of revenue.

Starlink Direct-to-Cell Partnership: High-risk, high-reward initiative for multi-country satellite connectivity

This collaboration with Starlink is a major new venture aimed at providing satellite-based mobile service integration across VEON's operator networks, representing a high-growth market segment with unproven commercial scale for VEON currently. The agreement grants access to over 150 million potential customers across five countries. The initial rollout is slated for Kyivstar in Ukraine in the fourth quarter of 2025, with Beeline in Kazakhstan following in 2026. The non-exclusive nature of the deal means VEON is also pursuing agreements with competitors for 2027, 2028.

• Potential addressable customer base: 150 million plus.
• Kyivstar service launch target: Q4 2025.
• Partnership is non-exclusive, with other talks scheduled for 2027, 2028.

AI1440 Strategy: Embedding locally trained Large Language Models (LLMs) into digital platforms, a new, unproven investment

VEON Ltd.'s AI1440 strategy focuses on embedding locally trained Large Language Models (LLMs) to augment human capabilities. This represents a high-growth area, evidenced by VEON Group's direct digital revenues growing 63.1% YoY in USD terms in Q3 2025, reaching 17.8% of total revenue. In Q1 2025, digital revenues had grown 50.2% YoY. This segment requires heavy investment, with the Group's LTM capex intensity at 21.6%. The company reaffirmed its 2025 guidance for underlying local currency EBITDA growth between 16% to 18% YoY, driven partly by this digital push.

Here's a look at the digital revenue contribution to the overall VEON Group performance:

The newly listed Kyivstar Group: High market share, but cash upstreaming is constrained by martial-law dividend limits

Kyivstar Group Ltd., despite being Ukraine's leading digital operator with a high market share, is categorized here due to the severe constraint on cash realization for the parent company. In Q3 2025, Kyivstar delivered total revenue growth of 20.9% YoY to UAH 12.3 bn (USD 297 mn) and EBITDA growth of 21.5% YoY to UAH 7.1 bn (USD 171 mn). Digital revenue surged 531% to UAH 1.5 bn (USD 35 mn), now representing 11.9% of total revenue, largely due to the consolidation of Uklon. The unit maintains a strong balance sheet with USD 472 mn in cash as of Q3 2025. However, the operational environment imposes limits on dividend upstreaming to VEON Ltd., effectively constraining the return on this high-performing asset.

• Q3 2025 Total Revenue Growth: 20.9% YoY in USD.
• Q3 2025 EBITDA Margin: 57.6%.
• Digital Revenue Share (Q3 2025): 11.9%.
• Projected 2025 Capex Intensity: 30% to 33% range.

Banglalink (Bangladesh): Faces political and regulatory uncertainty, which complicates its market position and investment needs

Banglalink, a VEON operator in Bangladesh, operates in a market characterized by intense competition and significant external risks. While the company had over 43 million customers and saw revenue increase by 14.4% in 2023, the near-term environment is clouded by political factors. Fitch Solutions noted that political risks remain elevated ahead of the February 2026 national election, retaining the political risk index at 54.9. Regulatory challenges, such as high spectrum fees and compliance with BTRC guidelines, also present financial burdens. This uncertainty necessitates careful capital allocation, typical of a Question Mark where market share capture is hampered by external factors.

Key external factors impacting Banglalink's investment profile:

• Political Risk Index (as of Oct 2025): 54.9.
• Customer base: Over 43 million subscribers.
• 2023 Revenue Growth: 14.4%.
• Key Challenge: High spectrum fees impacting profitability.