VEON raises earnings outlook, plans deeper digital investment in Ukraine

VEON lifted its earnings outlook and said it will deepen digital investment in Ukraine, betting that Kyivstar's network and app-based services can keep expanding even as the country remains under attack. The company said the better view reflected stronger-than-expected performance and continued growth in its digital business, not just a rebound in legacy telecoms.

The plan matters because Kyivstar is Ukraine's leading mobile operator and one of the clearest gauges of how the country's digital economy is holding up. In an August 2025 investor presentation, Kyivstar said it serves 24 million customers and described itself as the leading Ukrainian digital operator, with consumer services including Helsi, a healthcare platform with more than 28 million registered patients, and Kyivstar TV, which had 2 million monthly active users. The same presentation pointed to enterprise offerings in cloud, cybersecurity and AI, the kind of tools businesses use to keep operating when physical conditions are unstable. VEON's Ukraine strategy material also said Kyivstar was the first Ukrainian company listed on a US stock exchange.

The numbers suggest the digital shift is already material. VEON said direct digital revenues surged 50% year on year in the first quarter of 2025, rose 57% in the second and were up 63% in the third. Kyivstar's second-quarter 2025 trading update put total operating revenue at USD 284 million, up 20.9% in dollars, and adjusted EBITDA at USD 165 million, up 18.7%, with the first-time consolidation of ride-hailing company Uklon lifting revenue. That mix shows the business is no longer tied only to voice and data traffic.

VEON's 2025 Integrated Annual Report, published in April 2026, said the company and Kyivstar maintained support for Ukraine through investments in connectivity and energy resilience in 2025. A separate April 29, 2026 update said the two companies had already exceeded a previously announced $1 billion investment commitment to Ukraine ahead of schedule. For Ukrainian consumers and businesses, deeper telecom spending can mean sturdier connections, broader digital services and more room for cloud, security and other tools that keep commerce moving. For VEON, the latest outlook suggests the bet on Ukraine is still being treated as growth capital, not a retreat.