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Hello, and welcome to VEON's Q1 '26 Results Presentation. [Operator Instructions] As a reminder, this conference is being recorded today. If you have any objections, please disconnect at this time.

Anand Ramachandran, you may begin.

Thank you. Good morning and good afternoon to everyone joining us for VEON's first quarter results. My name is Anand Ramachandran, Chief Corporate Development Officer at VEON. Joining me today are our Group CEO, Mr. Kaan Terzioglu, and next to him, our Group CFO, Mr. Burak Ozer. As usual, Kaan will begin with our strategic and operational highlights, followed by Burak with a review of our financial performance, and we'll then open up the call for Q&A.

Before we begin, please note that today's presentation contains forward-looking statements, which involve risks and uncertainties. Further details are available in all our SEC filings, including our Form 20-F. Our earnings release and presentation are available on our Investor Relations website.

With that, let me hand it over to Kaan.

Thank you, Anand. VEON has entered 2026 with clear momentum, double-digit growth, accelerating digital revenues, stronger cash generation and continued capital returns. Revenues in U.S. dollars grew 17% year-on-year. EBITDA increased 17.7%, and margins expanded by 20 basis points. Importantly, this growth translated into strong cash generation with equity free cash flow up 73.4% year-on-year to $246 million. This performance reflects the strength of our digital operator strategy, combining resilient connectivity, fast scaling digital platforms and disciplined capital allocation. As a result, we are raising our 2026 revenue outlook, which I will return to later.

Second, we are seeing strong acceleration across our digital portfolio. Digital revenues grew 57.7% year-on-year and now represents over 25% of our group revenues. Importantly, this growth is increasingly profitable with EBITDA margins of 34.6%. This quarter, we also refined our reporting by including enterprise identity and credentials management within digital enterprise. These are mature services that are increasingly shifting from traditional A2P messaging towards API-based platforms. On a comparable basis, excluding this reclassification, our digital revenues actually grew over 75%.

Third, we continue to execute multiple growth levers within disciplined asset-light framework. In Pakistan, we secured the largest spectrum allocation in the March spectrum auction strengthening capacity and supporting future growth. We are expanding our financial services footprint and our acquisitions of TPL Insurance and Apna Bank acquisitions to come are on the right course. We are deepening our ecosystem through targeted acquisitions, such as OLX and Tabletki. These initiatives enhance engagement expand monetization opportunities and reinforce our long-term growth platforms.

Finally, we remain firmly focused on shareholder value. We continue to believe our shares do not reflect the value and cash generation of the business, and we are acting on that conviction through our buyback program. At the same time, we are reducing leverage and maintaining financial flexibility. Management ownership remains a key signal of alignment, reinforcing our confidence in the value we are building.

Let us review our Q1 financial performance. Let's move to the next slide. Our strategy is translating into strong high-quality financial performance. Both Telecom and Digital segments are contributing meaningfully to profitability and cash flow, demonstrating the strength of our integrated model. Telecom revenues grew steadily while digital revenues increased significantly and now account for 1/4 of total revenues. As highlighted earlier, we are encouraged by the strength of our cash generation this quarter and continued reduction in leverage.

Next slide, please. Our growth continues to outpace inflation across our markets, reflecting the strength of our operating model. On a like-for-like basis, which adjusts for the divestment of Pakistan Towers, Kyrgyzstan business and the acquisition of Uklon and Tabletki, revenues grew 15.4% and EBITDA grew 15% year-on-year. This reflects our ability to execute fair value pricing supported by strong demand, high engagement and increasing customer reliance on both connectivity and digital services.

Let us move to our Digital performance, which continues to scale in size and quality. Let's go to the next page. Digital revenues reached $303 million for the quarter, now representing over a 1/4 of group revenues. The reclassification of enterprise identity and credentials management within digital enterprise, which I highlighted earlier, contributed $44 million for the quarter with prior periods reclassified for comparability. Growth remains broad-based, with financial services leading and strong contributions from entertainment, ride hailing and health care.

We also began consolidating Tabletki from February further strengthening our health care vertical in Ukraine. Our digital platforms continue to benefit from structurally low customer acquisition costs and highly efficient distribution creating a scalable competitive advantage across our markets. Importantly, digital services are structurally lower in capital intensity, supporting strong cash generation capacity.

Let's go to the next page. Multiplay customers remain a key growth driver. These customers use connectivity with digital services, and they deliver significantly higher value with ARPU now 3.9x that of voice-only customers. This fact also helped us raise overall ARPU to USD 2.3 for the quarter from $2 a year ago. Multiplay revenues grew almost 18% year-on-year and now represents 58% of consumer revenues.

Let me now update you on the operational performance across our markets in the next page. We are seeing strong operational momentum across the board. Pakistan and Ukraine continue to lead, while Kazakhstan and Uzbekistan delivered steady growth. Bangladesh is continuing its growth for a second consecutive quarter in a row. Digital momentum is consistent across all markets, supporting both growth and diversification. Our focus is clear. To sustain this momentum through disciplined execution and balancing revenue growth with profitability over the course of the year.

Next slide, please. Our financial services business in Pakistan continues to grow from strength to strength. JazzCash served over 29 million users during the quarter while our merchant base expanded to over 600,000 merchants. This is driving a powerful network effect. Transaction volumes remain robust. With last 12-month transaction value reaching USD 60 billion, or 15% of Pakistan's GDP, reflecting a sustained growth in usage and engagement. We are also scaling, lending at pace, with over 200,000 loans issued daily, while maintaining disciplined risk management. Asset quality remains strong and nonperforming loans, NPL ratios remain well controlled. Mobilink Bank's loan portfolio has reached $289 million and is supporting the continued expansion of our Digital Financial Services ecosystem. Together, these capabilities position us well to support financial inclusion and capture long-term growth.

Next slide, please. We have refined our definition of digital customers to reflect active users in quarter 1, providing a more comprehensive view of engagement across the quarter. Across our ecosystem, we now serve 229 million digital customers, including over 72 million digital-only users. Our platforms are becoming go-to super apps in our markets. Transaction value reached almost $63 billion over the last 12 months, reflecting both scale and deepening engagement. This creates increasing opportunities in cross-sell, advertising and monetization.

Next slide. Our Consumer Digital platforms continue to scale across multiple networks. Financial services, entertainment, health care, ride hailing and super apps now serve millions of users across our markets. Our premium digital brands are delivering a differentiated customer experience by seamlessly integrating connectivity with everyday lifestyle services such as health care, e-commerce and mobility. Together, these platforms deepen engagement and unlock multiple opportunities, providing people that are underserved with service quality they deserve.

Next slide, please. We are also building strong momentum in digital enterprise. Our platforms in augmented intelligence, cloud and data analytics are scaling across our markets, supported by almost 2,000 engineers and data scientists. Our AdTech platform reaches over 100 million screens, enabling increasingly sophisticated AI-driven targeting and monetization across our ecosystem. Within our Identity and Credentials management services, the focus is rapidly shifting towards secure real-time authentication as a primary defense against fraud and scams and protection of children.

Let's go to the next slide please. Augmented intelligence, or AI, is a core pillar of our value creation. For us, AI is not a stand-alone initiative. It's a productivity engine across networks, customer care, digital services and enterprise solutions. We are building sovereign local language AI capabilities. Our Ukrainian LLM, Syayvo, which means glow was named by Ukrainian citizens, showing its national importance and strategic value. Our ambition is to put AI to work in real-time economy, helping doctors deliver better outcomes, teachers reach further and farmers produce more. This is practical augmented intelligence, delivering measurable impact in everyday life.

We have over 1,000 prioritized use cases across the group. Over 1.4 million customers are using our AI products across our footprint. We are focused on turning AI from potential into performance.

With that, Burak, I hand over to you.

Thank you, Kaan. We continue to deliver strong financial results in the first quarter. Group revenue reached $1.2 billion, growing 17% year-over-year in U.S. dollar terms, with broad-based contributions across our markets. Digital services grew 57.7%, reaching $303 million and representing over 25% of total revenue. This reflects strong execution across both Telecom and Digital businesses.

Next slide please. EBITDA reached $517 million in Q1 '26, growing 17.7% year-on-year. Margins expanded by 20 basis points to 43%, reflecting operating leverage and continued cost discipline. This demonstrates our ability to grow profitability while maintaining a disciplined cost base.

Next page, please. Now turning to the balance sheet. We ended the quarter with $1.75 billion in cash, including $457 million at headquarters level. Gross debt remained stable at $4.9 billion. Net debt, excluding leases, stood at $1.76 billion, with leverage reduced further to 1.07x. This provides us with financial flexibility and resilient capital structure. We are also proactively exploring strategies to manage our upcoming debt maturities.

With that, I'll hand the call back to Kaan.

Thank you, Burak. And returning capital to shareholders remains a key priority. Our current $100 million buyback is underway with ADS buybacks continuing. We are committed to a minimum of $100 million in annual share repurchases subject to market conditions and liquidity. Following completion of the current program, shares repurchased under future programs will be canceled supporting long-term shareholder value.

Next slide, please. We have a long track record of navigating frontier markets. Volatility is not new to us. We are proactively executing targeted actions to mitigate the impact of recent energy price movements. Reflecting our strong first quarter performance and continued commercial momentum, we are raising our 2026 revenue growth outlook to 11% to 14%, while maintaining EBITDA growth guidance at 7% to 10%. We are making further investments in Pakistan, following the recent spectrum acquisition to support future growth. Capex intensity, excluding Ukraine, is expected to be in the range of 15% to 17%.

To conclude, VEON has made a strong start to 2026. We are delivering double-digit growth, scaling digital revenues profitably, strengthening our credit profile and returning capital to shareholders. At the same time, we remain disciplined and mindful of external volatility. Our model is increasingly diversified, resilient and cash generative, and we are confident in the opportunities ahead. Thank you for your continued support.

We will now open the line for questions.

[Operator Instructions] Our first question comes from Max Findlay with Rothschild & Co Redburn.

The EBITDA guidance implies a downgrade for the business ex Kyivstar and margin contraction of about 1% following Kyivstar's EBITDA upgrade earlier today. Are you able to walk us through what's changed since we last spoke?

Secondly, and linked to my first question, I was wondering if you could provide some color about what you're seeing in your markets now as a result of the Iran conflict, and what risk there is to further EBITDA margin compression? I obviously appreciate the high uncertainty around the situation.

And finally, I asked at full year results, whether your CapEx guidance was a bit conservative following the Pakistan auction. And I guess I'd like to know what has changed regarding your network build plans there? Is this CapEx being brought forward, that was perhaps targeted for next year? Or is this new CapEx?

Thank you, Max, for the question. I think second part of the question is kind of the answer to the first. We have reiterated our guidance as it is on the EBITDA side, and I would like to see the next 3 months to give a more clear picture about how the EBITDA growth will curtail.

If you would ask me, I do not think any margin compression will happen because we have strong control over our pricing. Our services are differentiated and the tolerance towards price elasticity is quite healthy in the markets that we operate in. Having said that, today, President Trump is in China. I would like to see a little bit more clarity on geopolitical landscape before making a change in our guidance on the EBITDA side.

Now looking into the impact we see in our markets, especially about the oil prices. Today, in South Asia, a barrel of oil goes in between $160, $180, not like in line with the Brent. And it is not about the pricing, but it is also the availability of fuel, which is important. And I am very glad to see that actually Pakistan over time has been diversifying its energy production capacity towards wind, solar and hydro. And the hydrocarbons have been steadily declining in the needs. But in markets like Bangladesh, we have seen some availability issues over the last couple of weeks. And I hope that the pricing -- liberal pricing of oil will adjust this availability issue over the time.

But I think it's important to understand that the impact from the current weighted average inflation rate of 8.1% across our markets, we do expect to see double-digit inflation moving onwards. And that's, of course, something that we are watching very carefully.

With regard to investments in Pakistan, we have tripled our capacity on spectrum. And specifically with 700 megahertz spectrum getting into our fleet of spectrum, we will accelerate our deployments. It will be our coverage layer for 5G and also 4G nonstandard services as well. And that's why we decided to upgrade our guidance slightly. Having said that, if you look into our profile of our revenues.

Now 1/4 comes from digital services. Digital Services, CapEx to sales ratio is in higher single digits rather than higher 20s. And that's why we believe, over time, there will be a moderation of CapEx to revenue percentage in terms of investments. But still for the remaining of the year, we will accelerate our deployments in Pakistan because the average data consumption in Pakistan today is around 7.5 gigabytes per month which is 1/3 of what it should be. It's not that Pakistani's don't like to consume more. It's because the capacity is limited. So we believe that putting more capacity in place will give us the chance also to monetize that business.

Great. Could I just follow up on the EBITDA margin point? I think from what I understood, you're suggesting there will be no margin contraction. But given the upgrade to revenues and EBITDA guidance staying the same. If you take the midpoint of both, that obviously implies margin contraction. Are you suggesting that we should instead be thinking about you ending up at the full year at the top higher end of the EBITDA range, if margins are going to stay stable?

Max, I would suggest that we wait for Q2 end to give more clarity on that. At this particular stage, we wanted to stick to the guidance that we have given on the EBITDA side. But I think our pricing control and inflationary pricing discipline will allow us to keep our margin levels the same.

Our next question comes from Nicholas Paton with Edison Group.

Thank you very much for the additional information on the Pakistan Financial Services business, which I thought was very interesting. It reminded me of the work that we did in our initiation. And I think when I look back at that now, we were considering the transactions with MTN Fintech and Airtel Africa looking at potential valuations for that business. And it looks as though the business has grown something of the order of about 30% in EBITDA terms over the last year or so. And at the time, we were looking for a valuation of around about $1 billion for that business. I'm also aware that investors have been discussing a potential strategic investor for that or maybe even an IPO, have you any more thoughts about crystalizing value in that business?

I'm extremely happy with the progress we have with our financial services business in Pakistan. And specifically expanding our service lines into insurance and potentially to digital banking products that we do not cover today. I think there is a huge potential of serving a 250 million population in Pakistan and in addition to that 12 million population outside of Pakistan as Diaspora, there's a huge potential in this particular market, and I would like that growth to show itself a little bit more. What I'm even more excited is applying the same business model in a market like Bangladesh, where there is an additional 180 million population, with also a strong Diaspora footprint. And I think our intentions of at certain point, opening up this as an investment opportunity stays, but we will not worry as we see the growth rates actually are still allowing us to develop the business.

And should I infer from that, that if you were to look for a crystallization of the value in those businesses, you might look to for instance, merge the JazzCash business with businesses from other countries? Or would you try to look at options on a country basis?

We will keep an open mind in terms of how we see the consolidation. But clearly, there are certain aspects of the business which later on, actually turn into products such as digital assets, including stablecoins, remittances. These are global businesses. So some of these things actually could justify a global multi-brand strategy.

Our next question comes from Adrian Cundy with Emerging and Frontier Capital.

It's good to see you again. Congratulations, first of all, on beating our digital growth estimate this quarter. Last time we did the call, you said that you sort of had a vision of getting to 30% plus of turnover, sort of, by the end of next year, half from organic, half from potential M&A and 1% a quarter. You seem to be running ahead of that right now. So any -- do you think on an organic basis, you might even get to 30% earlier than planned given what's going on and particularly in Pakistan?

Well, I think, as I mentioned, really the momentum we see, not only just in financial services but entertainment, our digital premium products, health care marketplaces is very strong. And now actually, I see that a team we look to end of 2029 to achieve more than 50% of our revenues from digital services. And having that insight, I think half of that should come organic, half of that probably will come with acquisitions that we will see in the markets that we operate in.

But I'm very happy to see that we modeled our digital services growth, of course, as 35%-plus growth business, and it is proving to be almost twice as fast. And I'm happy to see that. But I don't want to give a guidance on the year on growth, that's not something we do at this particular time.

And just outside of sort of Ukraine and Pakistan and in terms of the growth capital for these -- for the digital wallet in Bangladesh, where you might be doing Kazakhstan and Uzbekistan. Do you see potentially a need for risk -- more risk capital or a primary issue in those businesses at the group level? And it sort of relates to earlier discussions you said about listing operating companies, particularly Jazztel in Pakistan. Is that still on the agenda given the current geopolitical situation?

I think it's important to look into these not only as crystallizing of the value, but having the right partners, right investors in place to develop resilience and strength. And from that perspective, we are, of course, always looking for what we can achieve around the world.

Okay. And if I just have a final question for -- on the debt. Last call, you indicated that you'd like to refinance the notes coming due before they become current in the fourth quarter of this year or address it. Do you sort of -- just for our modeling purposes, do you sort of have a target debt to capital in mind? And given that cash flow continues to accrue at the group level, will there be -- when you do move on the notes due in '27, do you need to refinance the whole $1 billion? Or will there be a principal payment and maybe an issue or something a bit longer duration at a smaller size that would provide a further acceleration of free cash flow to equity?

Let me ask Burak to answer that since they have been quite busy on this front. Please, Burak.

Yes. I mean the work has been going on, and we still plan to address the debt before it becomes current in November 26. So we are working on that. And all options are on the table. Of course, I think we will go for a minimum benchmark size whenever we go for it. And on top of that, we will have to decide based on all the capital inflows and outflows that we are foreseeing right now.

And if you sort of look 2, 3 years out, what sort of debt to capital structure would you see as optimal for the business?

Excluding leases, we don't want to cross the 1.5 mark, where we are at 1.07 today. So that's where we see ourselves.

[Operator Instructions] Our next question comes from Ahmed Mostafa with Inam.

I have a question on Uzbekistan. Customers are nearly flat or declining, but ARPU keeps growing. So how should we think about the growth strategy in this market?

Ahmed thanks a lot for the question. As you have noticed, our strategy is around multiplay nature of our services. And that practically means as customers move from being a single-play customer, meaning just consuming our voice services and transforming into consuming our digital services, the potential of ARPU quadruples and the churn goes down significantly. So that's also what we are observing in Uzbekistan.

Our customer base is maybe stable, but actually the type of services we provide is getting richer and richer. And that allows, especially with the family package models, a much higher traction in our wallet share.

Our next question comes from Himanshu Porwal with Gramercy.

Congratulations for a strong set of results. Just to get some clarity with respect to your financial services business. As in like how much of the Pakistan revenue comes from the financial services arm? And what are your plans on this very division itself, like the financial services? And do you plan to grow it outside of Pakistan on the similar verticals?

Sure, Himanshu, thanks a lot for the question. To give you an overall indication, for us, financial services business is about $0.5 billion business, a significant portion, almost 2/3 of it comes from Pakistan. And it's a combination of digital wallet services, insurance business, lending business as well as, of course, remittances. And we are serving almost 29 million customers actively, but we have 60 million. Actually, we just crossed the 60 million bank account number. So with that, we believe transacting more than 80% of Raast transactions and transacting almost 15% of GDP, we are already well-established financial services player basically.

Sorry, I mean -- I should have it more clear. I mean -- I meant more with respect to the lending business. Sorry about my...

You mean the percentage of lending business?

Yes...

Okay. Wait we...

So what we -- look, we don't get into that level of disclosure. But what we've indicated is that lending is -- roughly lending and interest income is slightly over half of the total revenues for the Pakistan business. So that's what we've indicated in the past. Clearly, as the business grows in size, we are aware that people want to know more, and that's something we are evaluating. And I guess over the next 6, 9 months, you'll see us providing more color around that. But for now, I think we'll probably leave it at that.

Yes, I can point it out 200,000-plus loans, Mobilink has a pretty big loan portfolio. So if you look at the connection services business as a whole, lending and interest income as yes, it's north of half of the total revenue base that we have today.

That is precisely what was my concern. And I mean, should we start seeing you guys as more of like NBFC sort of thing? Or are you going towards that? Are there any ambition of moving in that direction?

So Himanshu, I think you should definitely perceive us as a financial services company, which serves from wealth management to lending, to remittances to digital assets services in the country. So we are already, I think, from a number side, account number side and number of loan side, we are #1 in the country. And you will see us getting our fair share from the financial services business as a consumer-oriented financial services company.

Our next question comes from Jake Ng with New Street Research.

Just one question. Mobile ARPU growth in general and especially Ukraine was really impressive. Can you give more color on that? Is it really all from bundling and multiplay customers?

Look, if you look to our telecom growth, which is, I think, around 8%, 9% versus digital services growth, which is around 57%. And then there was another number which I disclosed, which was multiplay services growth, right? This is actually the telecom growth, but for the segment of customers who are consuming both telecom and digital services, but we do not recognize the revenue as digital service. We recognize the revenue as telecom service because it actually improves the data consumption. That grows more than 17%. So that is actually the sweet spot why our ARPUs are growing.

Even if our total number of telecom customers is stable at 150 million year-over-year, our ability to generate more telecom revenues from those customers are increasing because the customers who also consume our entertainment services, they consume more data. They even talk more on the phone and they stay longer with us. And those 3 drivers allows us to create more ARPU from the same customer base.

Our next question comes from Ali Zaidi with Inam.

I just have one question. Does Apna Microfinance Bank holds a different kind of license than MMBL? And can it like unlock any regulatory capabilities for JazzCash and MMBL in the future?

Well, we are definitely taking a very important role within the digitalization of the financial services landscape in Pakistan. And we truly believe that as we grow our footprint, including insurance businesses and Apna Bank, we will be basically operating as a digital bank, providing the services that our customers are in need of in the marketplace.

We have no further questions at this time. I will now hand back to Anand Ramachandran for closing remarks.

Thank you very much for your interest in VEON and for supporting us. As always, the Investor Relations team and all of us are available for any follow-up questions. We look forward to staying in touch. Till then, it's goodbye from us till the next quarter on this call. Thank you for your time.

Thank you very much.

Hello, and welcome to VEON's FY '25 and 4Q '25 Results Presentation. For those of you who have joined the Zoom webinar, if you would like to ask a question that you can use the raise hand button which can be found on the black bar at the bottom of your screen at any time to join the queue to ask a question. and you will be called upon during the Q&A session. [Operator Instructions] As a reminder, this conference is being recorded today.

Anand Ramachandran, you may begin.

Good morning and good afternoon to everyone joining us. Thank you for being with us for VEON's fourth quarter and full year 2025 results for the period ending 31 December 2025. My name is Anand Ramachandran, I'm the Chief Corporate Development Officer for VEON. Joining me today are Kaan Terzioglu, our Group CEO; and Burak Ozer, our Group CFO.

As usual, Kaan will begin with our strategic and operational highlights. After which, Burak will cover the financial results. We will then open the call for Q&A.

Before we begin, please note that today's presentation includes forward-looking statements, which involve risks and uncertainties. Actual results may differ materially due to the risks detailed in VEON's annual report and Form 20-F and other filings with the SEC. Our earnings release and presentation are available on our Investor Relations website.

With that, let me hand it over to Kaan.

Thank you, Anand. 2025 was a strong and transformative year for VEON. We delivered double-digit operational growth, accelerated our digital strategy, strengthened our balance sheet and unlocked significant shareholder value. Let me highlight a few key points.

First, our financial momentum is strong. In the fourth quarter, in U.S. dollars, revenues grew 17%, and EBITDA grew 29% in U.S. dollars year-on-year. For the full year, revenues increased nearly 10% in U.S. dollars and EBITDA grew 19%. We also crossed an important milestone, more than $2 billion of annual EBITDA with margins expanding to 45.7%.

The second theme this year is digital services revenue acceleration. Digital revenues grew 84% year-on-year in the fourth quarter and over 62% for the full year. Digital now represents more than 17% of group revenue, up significantly from last year. In Q4, more than 20% of our revenues were digital service revenues.

Following your request, we are including EBITDA for direct digital revenues to our set of disclosures. For 2025, EBITDA from digital services reached $207 million, with an EBITDA margin of 27.3%. This shows that digital ecosystem is not only growing quickly, it is also becoming profitable at scale.

The third theme is execution of our asset-light strategy. During the year, we completed the sale of our Pakistan tower portfolio, deconsolidated TNS Plus, reducing our leverage and strengthening our balance sheet. We launched direct-to-cell connectivity with Starlink, which is already live in Ukraine and Kazakhstan, and this capability will expand to Bangladesh in 2026. These initiatives demonstrate how we are combining connectivity, digital platforms and new technologies requiring less CapEx to create long-term growth.

Finally, we continue to unlock value for shareholders. The listing of Kyivstar on NASDAQ was a landmark achievement. This quarter, we are further increasing the float with a successful secondary offering, which was completed about a month ago. Today, Kyivstar is valued by the market at $2.4 billion, with VEON's stake worth approximately $2 billion alone.

During 2025, we strengthened liquidity, reduced leverage and continued to execute our share buyback program. We believe VEON's ADSs remain significantly undervalued. And today, we are announcing our policy of continuing to repurchase at least $100 million of shares annually.

Let's move to the next slide. Our strategy is clearly translating into strong financial results. Group revenue reached $4.4 billion in 2025, growing 9.9% in U.S. dollar terms. Telecom and infrastructure revenues grew 3% even after the consolidation of TNS Plus, [ Deodar ] and [ Kygyztan], supported by average revenue per user growth driven by strong subscriber engagement. On a like-for-like basis, as the retailers would call it, the same-store sales, the revenue growth would have been 11% for the year.

At the same time, digital revenues grew more than 62%, reaching $759 million. Digital growth is not just about scale. It is not a vanity. It is contributing to profitability and cash flow.

This year, we have exceeded EBITDA of $2 billion, with margins expanding 350 basis points to 45.7%. This reflects both operational discipline and benefits of scale.

Next slide, please. Our growth continues to outpace inflation across our markets. Pricing control empowered by value propositions remains strong. Our ability to implement fair value pricing, leveraging low customer acquisition costs and effective distribution, enables us to gain [ bullet share ] from customers.

Next slide, please. Our digital ecosystem continues to scale rapidly, Digital revenues reached $759 million, representing 17% of our group revenues for the full year. Financial services remain our largest digital category, with strong growth also coming from entertainment platforms, ride-hailing and delivery, premium digital services and enterprise solutions. Digital services business model have much lower capital intensity, which supports equally strong cash flow conversion.

Next slide. Multiplay customers are a key driver of our growth. These are customers who are using connectivity plus at least one of our digital services. Multiplay customers generate nearly 4x the ARPU of voice-only users, and their churn rate is 1/3. Today, multiplay accounts for 56% of our total consumer revenues and continues to grow rapidly. This demonstrates the power of our integrated connectivity and digital ecosystems.

Next slide, please. Growth across our markets remains balanced and resilient. Pakistan, Ukraine, Kazakhstan continued to deliver strong momentum. Bangladesh returned to positive growth during the year. Uzbekistan continues to expand steadily. This diversified footprint provides stability and long-term growth opportunities.

Next slide, please. Our financial services business in Pakistan continues to perform strongly. Monthly active users reached 21.5 million. The merchant base expanded to over 511,000. Transaction value reached $53 billion, equivalent to around 13% of Pakistan's GDP. Mobilink Bank scales rapidly with a loan portfolio of $264 million and a world-class loan quality. This positions us well to support Pakistan transition to a digital financial ecosystem.

Next slide. Across our ecosystem, we now serve more than 135 million active digital service users. Three-month active digital service users exceeded 200 million, already larger than our telecom subscriber base. Digital-only customers also grew strongly, reaching 33 million. Total transaction value across the ecosystem reached $55 billion, growing more than 50% year-on-year. This is not growth. This is a structural shift, demonstrating the scale and engagement of our digital platforms.

Next slide, please. Our consumer digital platforms continue to scale over several verticals: financial services, entertainment, health care, ride hailing, marketplaces and SuperApps, together now reached tens of millions of users across our markets. At the same time, our premium digital brands, virtual digital operators, such as [ Easy, Rocks, Hawk or Rise ] are creating unique experiences with integrated telecom and lifestyle services such as augmented intelligence, mobility, education, health care and e-commerce. These platforms deepen the engagement and create multiple monetization opportunities.

Next slide, please. Our enterprise platforms are also evolving into technology businesses serving governments and corporations. This quarter, we launched BuildX in Uzbekistan, strengthening our regional AI and software capabilities. Across our enterprise hubs, we now have around 2,000 engineers and data scientists building cloud, augmented intelligence and data analytics solutions. Our ad tech platform now reaches over 98 million screens, enabling AI-driven advertising across our entertainment platforms.

Next slide. Augmented intelligence is becoming a core part of our value proposition, from raw data to digital services, our next frontier is to offer our customers a better version of themselves, a priceless value proposition, superhero capabilities, making the doctor a better doctor; a teacher, a better teacher; a farmer, a more productive one. Through augmented intelligence capabilities, we are embedding AI across our platform, services and enterprise offerings. We are developing local language large models including Kazakh, Ukrainian models and Urdu, Uzbek, Bengali in the making. These initiatives are already delivering measurable results. I see no reason why we cannot offer the health care services today, available only to the [ wealthiest ], to everyone at a fraction of a cost. There is no reason why best doctor not to be in Karachi, best teacher not to be in Dhaka. Most productive farmers will be in [ Olmoti ] or Odessa.

Today, our augmented intelligence enabled customer care tools handles close to 1 million interactions each month, creating better experience at a fraction of a cost. I can see these numbers growing tenfold over the next 2 years.

With that, I will hand the call over to Burak.

Thank you, Kaan. Our group revenue reached $4.4 billion in 2025, growing 9.9% year-over-year in U.S. dollar terms. Adjusting for portfolio changes, revenue growth would have been around 11% in dollars and over 15% in local currency terms. Digital services were again the fastest-growing segment, reaching $759 million and representing 17% of the group revenue.

Next slide, please. EBITDA for the year reached $2.01 billion, representing 18.8% growth. Our EBITDA margin expanded to 45.7%, reflecting both operating leverage and disciplined cost management. Growth was supported by strong performance across Pakistan, Ukraine and Kazakhstan.

Next slide, please. Turning to the balance sheet. We ended the year with $1.73 billion of cash, including $557 million at headquarters. Net debt, excluding leases, declined to $1.75 billion, with leverage reduced to 1.09x EBITDA. This reflects a strong and sustainable capital structure.

With that, I'll hand the call back to Kaan.

Thank you, Burak. Returning capital to shareholders is always a priority. We completed our first $100 million buyback program in August '25. Our second $100 million program is currently underway. Going forward, our policy is to continue annual share buybacks of at least $100 million, reflecting our confidence in VEON's long-term cash generation capacity. Once our annual buyback program starts after the completion of the current buyback program, shares bought back will be systematically canceled.

Next slide. Let me conclude with our 2026 outlook. We will give our guidance in U.S. dollars. We expect revenue growth of 9% to 12%, EBITDA growth of 7% to 10%. CapEx intensity, excluding Ukraine, is expected to decline to 14% to 16%. We remain confident in the continued growth of both our core telecommunications and digital services businesses.

To conclude, VEON is delivering strong financial results, scaling a high-growth digital services ecosystem and unlocking sustainable shareholder value. We are optimistic about the opportunities ahead.

Thank you for your continued support and trust in our company. We will now open the line for questions.

[Operator Instructions] Our first question comes from Max Findlay with R & Co. Redburn.

This is Max Findlay from Rothschild & Co. Redburn. Firstly, I've got some questions on the Pakistan spectrum auction. So some might be surprised by the 50 megahertz in the 3,500 megahertz band you acquired. This bandwidth is normally associated with 5G. And I was wondering if it's an aspiration to build a 5G network in Pakistan or does the priority remain 4G?

Secondly, from my understanding, the costs are denominated in Pakistani rupees. Are there any escalators within the spectrum costs that we should be aware of?

Finally, can we expect a ramp-up in Pakistan's CapEx as you prepare on utilizing the new spectrum?

And then just a quick one. I noticed there was an update on the OLX Kazakhstan acquisition, which is still going through regulatory approvals. Are you able to provide any updates on expected closing?

Thank you, Max. Let me start with commenting Pakistani government for their visionary action and reforms in the spectrum allocation in the marketplace. Pakistan struggled with, almost for many years, a very low spectrum allocation to the mobile operators. Actually, it was below 300 megahertz that was being shared by 4 operators. In the new auction, they auctioned 600 megahertz for 3 operators, twice for 1 less operator. And they have tripled the spectrum at use in the country by doing this, at rupee-based pricing and at much lower pricing per spectrum. Hands off -- really a great success in terms of the execution. They raised $0.5 billion. But more importantly, they opened up a real chance to improve Pakistan's infrastructure.

Now during this auction, we have acquired 700, 2300, 2600 and 3500 bands, a total of 190 megahertz of spectrum, for a total cost of $240 million. This is a fantastic achievement. And the reason that we have invested broad-based different platforms is our belief that we're going to be improving the quality of 4G as well as deploying 5G networks.

It is not true that 3500 can only be used for 5G. It can be used actually, 2600 can also be used for 5G. But we need to keep in mind that the amount of 5G-capable phones in Pakistan has not even reached 5%. So we believe still in Pakistan there is a huge opportunity to improve the mobile broadband services for 4G platforms as well. This will not stop us deploying 5G in certain pockets where we see relevance. And we will be executing that strategy actually quite quickly since we are ready to roll out both advanced 4G solutions as well as 5G services in Pakistan.

Now with regard to OLX in Kazakhstan, we are actually waiting for regulatory approvals to close the transaction. I think it has already been taking a while, but I hope that it will be closed within Q2, and that's our expectation. But of course, regulatory approvals are always depends on speed of certain institutions.

Kaan, there was also a question on 5G CapEx in Pakistan. We've given CapEx guidance, Max, of 14% to 16%. So I think it's fair to expect us to be very disciplined when it comes to CapEx. So we would not expect any big [ lumps ] coming through. It's something the business will manage in the long run. And as Kaan said, we will be very, very disciplined in what we have as an asset-light strategy, where we spend where it's necessary for to maintain the network differentiation and service innovation that we want to keep.

But I would like to highlight that we are not afraid to invest. Our investments actually are returning to us in a very handsome way, because all the infrastructure that we built is actually the platform for our digital services to connect to customers. So we will, of course, keep you positive about if there will be any changes in the outlook.

Our next question comes from Theodore O'Neill from Litchfield Hills Research.

First question is about -- so your revenue growth was strong here for the year despite a somewhat challenging market. And I was wondering if you could separate out a little bit the success in pricing versus volume growth, digital services and portfolio changes, that mix to help the growth for the year?

Sure. So Theodore, I think our recipe for success relies on the fact that we rely less and less on selling raw data and number of gigabytes. But we managed to transform our customers consuming meaningful digital services, from digital banking to entertainment to health care, education, ride-hailing, marketplaces. And the ability to transition into what we call multiplay really creates an opportunity to build deep relationships with the customers, where our relationships are longer, meaning that churn is almost 1/3, and our revenue generation capacity is almost fourfold compared to a traditional single-voice user.

And we see actually this transition allowing us not only to deliver high growth on telecom space, but also on top of that, direct digital revenues coming from -- directly from these platforms. And we separate these things completely separate from each other. And that's the secret sauce of VEON's digital services operator model.

And as a follow-up, on digital revenue, could you discuss the next phase of growth, where that will come from, and the margin profile?

So the margin profile currently for 2025 is 27.3%. We have a business model that is architected to deliver equivalent cash flow generation capacity, whether it's telecom services or digital services. If you look practically to the telecom business model, you create about 47% EBITDA margin, but then you will have a heavy CapEx cost of almost 25%. And that leaves you with a 20% to 23% cash flow generation capacity.

On the digital services side, we build a model where you create 27% margin, but your revenue-to-CapEx ratio is 7%, which again leaves you a 20% cash generation capacity. And we are very happy with this balanced model as we grow.

Our next question comes from Adrian Cundy with Emerging & Frontier Capital.

Can I just talk about -- one question, can I just talk about capital allocation in the midterm? Obviously, your CapEx is headed in the right way, so 16% core plus whatever Ukraine has to do to keep things going. You have some leverage during '27. You're continuing $100 million in buybacks, but no sort of long-term visibility on when dividends may resume. And how do you just sort of like -- $0.5 billion at the group level, how do you sort of plan on using that? And a number of investors have spoken to have sort of some indirect questions saying what's the long-term sort of capital allocation vision for the company. I think it's a piece missing from your story.

Sure. Adrian, to be precise, in addition to the $200 million buybacks we announced, we are actually in the middle of the second announcement we have made -- once that is completed. Now we have announced the policy of continuing our stock buybacks of $100 million each year with an intention to cancel the shares that we buy back.

We have talked to our investors. What we hear from our investors is their preferred method of compensation in stock buybacks, not dividends. And as you can imagine, our business is a high-growth business. We see lots of opportunities to actually grow our business and continue delivering on that policy of minimum $100 million. So it doesn't set where that could be, but minimum $100 million, I believe, is a solid basis for our policy for the mid to long-term compensation for our shareholders.

I do not necessarily see a high-growth company like us being on the dividend path. And this is not a desirable outcome for our shareholders from what we hear from the investors.

Okay. A couple have asked me about it, that's why I asked, about the long term. I was thinking about a 3 to 5-year view more than anything. But again, sort of $650 million of equity free cash flow after leases, $100 million in buybacks, there is about $1.2 billion obviously of that at the HQ level. What is sort of the thinking on refinancing that? How much might be redirected to M&A at the group level? And what's your sort of liquidity -- group level liquidity sort of targets?

So Adrian, if you look to the last 6 quarters of our performance and if you look to the acquisitions that we have made over this time, you will notice one thing, disciplined. And every single acquisition that we have made, whether it be [ Hel-C ] or Uklon or solar generation sites in Uklon or OLX, Tabletki. These are all accretive businesses that we have invested in with the purpose of penetrating into adjacent markets in the countries that we are in. We will keep this discipline.

So please do not think that we are out there looking for acquiring assets that we can put our hands on. We focus on what matters: customer needs and customer demand. And we will continue doing this in the markets that we are in.

At a certain point, it is also obvious, we as a group, we are kind of maybe unnecessarily experience in operating in difficult markets. I'm not going to apologize for being successful in difficult markets, but this is a unique characteristic of our company. And if we see opportunities arising in markets where large-population countries who are underserved in nature, underpenetrated in nature, with the right regulatory environment, taxation schemes, we might show interest. But again, as I said, we are extremely cautious and disciplined in making this type of decisions. I believe the current growth potential that we have in our 5 markets is abundant.

And on top of that, Adrian, I mean, we have also set up an anchor for ourselves, which is 1.5 net debt excluding leases to EBITDA, which we are now well below that with 1.09, which have come down from 1.34 last year. Therefore, we have room in terms of our balance sheet from a debt perspective. But our strategy continues to put that down to the countries which we are at 50% level right now when you look at our debt. And we are aware of the fact that our debt at the HQ will come current when November comes. Therefore, actively working together with our investors, banks, et cetera, to address before that time, and have gained some way on that one.

Our next question comes from Nicholas Paton with Edison.

I guess I'm sort of interested by Ukraine. I think it's fallen off the radar a little bit with what's happening with the geopolitical situation, but the fourth quarter was quite a bit better than I expected to be, it was about 10% better on revenues and actually a full 18% on EBITDA. And so I was kind of interested to hear what you're thinking internally about the optionality of that business. What does it look like over the next couple of years if things continue as they are?

And as we heard, the [ Invest Ukraine ] event that you posted recently in Dubai, the potential when the war finishes is clearly very significant. And this might -- or in fact, it certainly is the time to invest if you want to have the full benefit from that. So what are you thinking about that upside case as well? Have you made any projections on where you think the business could go in those 2 scenarios? I'm sure you have, I just want to know what they are.

Nicholas, today, actually, we're going to have another call about Kyivstar operations, with regard to their quarterly and annual results. So more details you will be able to find there.

But let me share you my dream. 10 years from today, Ukraine will be the most prosperous, happy, healthy and high-quality living standard country in the entire European Union. That's what I believe. That's why we have been propagating the opportunities in Ukraine. Yes, today, there is war, tomorrow, there might be peace. Who knows when tomorrow will happen?

But I truly believe that the opportunities in Ukraine and the market dynamics, which is demonstrated in our business in terms of the digital appetite of the users, ability to provide services over digital platforms, whether it is health care or entertainment, these are abundant. And I believe with the regulatory environment getting more synchronized with European Union standards, this will give huge opportunities. And I really believe that this is an investment that was paid back to us in a very strong way. And I think we are proud to have an investable vehicle in NASDAQ coming from Ukraine, which will allow people to participate in this growth.

Our next question comes from Chris Hoare with NSR.

Great obviously to see the accelerating trends. I mean really very strong in the quarter. I just want to touch on the settlement with Dhabi Debbi Group, though. I wonder if you could give some context around that. Where that comes from, why you've decided to settle now? And then, obviously also, are there any other contingent liabilities that you think might crystallize over the next 2 or 3 years that you'd want to flag?

Chris, thanks a lot for asking the question and giving me the opportunity to explain. We are a peaceful company. Back in '21, I was deeply saddened with the decision of Dhabi Group in terms of exercising their put option. We went through a process -- we went through a process, and in those days, remember, it was in the middle of COVID, we came to a valuation, and we concluded on that exercise.

But later on, it was obvious that our business in Pakistan did extremely well. We did not only do operationally and financially well, we managed to execute on the dream of being asset-light. We sold Deodar. We turned around big time our financial services business. And we could not not notice the bitter taste that our then minority investor, Dhabi Group, had, and we thought it was the right time to find a resolution to this issue. Therefore, I'm very glad to welcome him, His Highness Sheikh Nahyan, back to our cap table. And I think this is a issue that we are now going to leave behind. The management will have no distraction on thinking about this issue. And I'm so happy to basically proceed with a strong investor from the Middle East on our cap table.

And with regard to any other disputes like that, we are 100% peaceful now. This was an issue actually which we have indicated on our 20-F a long time ago. and I'm happy that one more issue is off the table.

Yes. And just in terms of the timing, is that -- sort of potentially make a potential Jazz IPO simpler? Or is there anything to sort of read into it from that perspective or no?

Look, I think our intentions are obvious, less conflicts, more peace, more prosperity for everyone. And I think this is, of course, an important thing with regard to opening up our monetization opportunities in Pakistan, both for financial services and Jazz itself.

And also before addressing the bonds, this would be a good time to clarify and bring clarity to all our investors, as I just mentioned a couple of minutes ago, that we will be addressing our bonds. So we believe that this would be the good time to clarify the situation and have a clear pathway forward.

Our next question comes from Vincent Fernando with [ Zero One].

So you're acquiring TPL Insurance with expected closing mid-2026. Can you walk us through the embedded insurance thesis behind that maybe distributing through Jazz Cash 74 million subscriber base? Maybe any color on maybe what target attach rate you're assuming you'd achieve? And is that -- is this a story we'd see maybe second half 2026 starting to be accretive to digital? Or it's more a 2027 story?

So Vincent, thanks for asking. Actually, insurance business has been already accretive to our business in Pakistan. It is sometimes, even if when I say it, it's hard to believe, on a daily basis, we are embedding about 900,000 insurance policies in our different products. This is happening today.

And one of the reasons why we thought acquiring an insurance company as part of our financial services offerings is the realization that why are we selling other people's products? Or why are we selling other people's products only if we can sell some of our own assets here as well?

So there are 2 important platforms. One part is Jazz Cash, which is selling lots of embedded insurance policies. But the other platform is FikrFree, which is actually a health insurance platform, which I also think that it's a huge opportunity for us as we focus on health care services. And TPL, it's a small insurance company with about $20 million, $25 million of top line, but this will give us the necessary licenses and platforms to build low damage cost insurance products.

One other sort of follow-up question for that. A lot of mobile money operators in emerging markets have converted to full digital bank licenses. I just want to get maybe the latest. Is there a digital banking license for Jazz Cash? Is that something actively pursuing right now with the state bank?

So digital financial services is one of our priority growth areas. And in all the markets that we are active in, we are actively seeking digital banking licenses. It's no secret. And with regard to Pakistan, our operation in Pakistan includes a microfinance bank and a digital wallet. Combination of these things create actually, with certain limitations, equal to digital banking license capabilities.

And imagine, with those limitations, we managed to create this business success story. Once those limitations will be gone, I think our business will even grow faster. So we are actively seeking those. And I'm confident that we build the necessary credibility in the eyes of the central banks, not only in Pakistan, but also in other central banks, to be allowed for digital banking licenses.

Our next question comes from Matthew Harrigan with StoneX.

You're devising local market LLM in concert with some very prominent international tech companies. And what's interesting is Xoom is actually taking a somewhat similar approach. They're not trying to have the costs for the LLMs in-house. They're working with really what they call a federated model, working with Google and everyone else, OpenAI. And interestingly, you're probably aware of it, there's something called Humanity's Last Exam, which is kind of an amusing acronym, HLE, it rates AI models. And what they did in-house using this composite approach and doing a lot of [ SLS ] for specific verticals actually graded out ahead of what even the latest [ Genesis ] model did. I would imagine that with your market specificity and the language differences, you must really be -- if you don't have it already, you must be working toward LLMs that are maybe vastly or considerably better than anything else that would work in the market. Do you have any thoughts about the progress -- I know this is kind of a down-in-the-weeds question, but do you have any thoughts about the progress you and your partners are making on the LLMs for the various markets?

Matthew, thanks a lot for the question. We have a couple of partners that we work with very closely. One of them is [ Seeker ], one of them is MeetKai, and we really work together to develop low-cost but very effective local language models. We have so far been successful with Kaz LLM, Ukrainian LLM is in the making. And in the meantime, we are working on Urdu, Bengali and Uzbek LLMs.

And the reason why we take this sovereign AI opportunity is because there is no other player in our markets. Our markets by themselves is entry barriers around payments, around access, digitalization, mobile broadband and affordability. So we are leveraging all those capabilities to make sure that we are uniquely positioned to capture this market.

And I'm very excited because this is actually the value proposition in terms of building the next step, right? Raw data is what everybody does. You sell gigabytes. Digital services, what very few does among us is, we are very successful in that, you sell subscription to services.

The third level, you make people better. A doctor having an agent as maybe an online assistant for him, taking notes; or a teacher helping with coaching and planning of educational programs. And we really focus on that part because this is what matters, customers getting a better service. And I believe there is no other player in the markets that we operate in who can deliver on this promise. We have the right distribution platforms, the SuperApps, we have [ Jenamda ], we have [ Simosa], we have [ Humby], we have [ Mikey Star ], all these platforms are just a click away from the customer to make them super human bigs. And that's the business which is most exciting in my mind currently.

Congratulations, especially on getting about 20% of the digital revenues. I think that's really key to the stock rerating on the valuation multiples.

Our next question comes from [ Ahmed Mustafa ] with Inam.

I have 2 questions. First is your 2026 guidance implies some margin compression, with EBITDA growth trailing revenue. So is this primary a function of the mix shift towards the high-growth digital payment segment, which carries a lower EBITDA margin but a higher free cash flow conversion rate due to its asset-light nature?

And second, the question is regarding the recent auction win in Pakistan. So could you provide more color on the deployment time line for the new spectrum? Specifically, when should we expect this added capacity to translate into visible operating metrics such as ARPU growth or lower churn in the 4G base?

Ahmed, thanks a lot. So if you look to 2025 performance of ours, and I made this comparison like if we were a retail business, like we would do -- like shop same-shop basis comparisons. And if you would do that, you would see that our revenues grew 11% and our EBITDA grew basically 18.8%. So on the back of that overperformance in terms of nominal EBITDA, when you compare the EBITDA guidance we have given, actually, you will see that it is not a low number. We will actually be growing our nominal EBITDA in a very significant way.

But we are also looking into the realities of this world. And it's not the dilution that potentially the digital services will bring. It has maybe some small element. But the real reality we are at today, none of our countries, except for Kazakhstan, is oil producing. And it is natural to expect $90 to $120 oil price per barrel oil price, which will potentially have an inflationary impact of 2% to 9% in the countries that we operate in.

Now I do expect that we would react in a positive way. We have pricing power in the markets that we can apply. But the timing of these things could have an impact. So that's the assumptions that we took into consideration when coming up with our guidance for the market.

Now with regard to Pakistan, we are, I think, allocated today the spectrum. The market is so spectrum-hungry that I think some of that will happen immediately. If you think about the average consumption of data in Pakistan, we are today at 7 gigabytes per person. In any other 4G mobile broadband environment, we are talking about 20 gigabytes per person consumption. So clearly, there is a bottleneck that is going to be disappearing. And I do expect some of that to come as early as towards the end of this year. And the rest will, of course, will come from new deployments, which we will see the impact in 2 years.

The good thing about our model is our sourcing mechanisms allow us to start paying for the CapEx when the equipment starts cash generation. So I believe we will be able to balance this process in terms of cash received from the customers and that is invested in the marketplace.

Our next question is a written question from [ Yejide Onabule ] from [ Bearing ]. It says, what are the plans for the 2027 bonds? Do they plan to come to market this year to refinance it? Are there any more acquisitions in the pipeline? Do we expect FCF to be positive this year? Is there a leverage target?

Burak, I will leave you to answer the question.

As I said on the previous answer that we are planning to address those bonds this year before they become current in November. Having said that, the amount will be dependable on what comes in and out in terms of our asset-light strategy, sales, our M&A portfolio that we have on the radar screen. So the amount is not decided as of today.

In terms of the free cash flow, we intend to turn minimum double-digit free cash flow to revenue going forward. And therefore, you could expect positive free cash flow from that perspective.

And was there a third question that I missed in terms of M&A.? I think that was the third question. Anand, yes?

Yes. So I think we are always, as Kaan pointed out, we are always looking at a bunch of targets. And as Kaan pointed out, expect us to be extremely disciplined -- continue to be extremely disciplined in the way we look at these assets. So we have a priority of growing the digital ecosystem. We have a priority of growing the financial services business. And clearly, we will look to make investments in telecom as the spectrum investment in Pakistan shows.

So absolutely, we will be opportunistic, and that's why Burak went back to the point of how much we decide to raise eventually will be a function of timing around that as well. But the one consistent theme around this is discipline and making sure that whatever we do is accretive to earnings, cash flows and shareholders' value.

Our next question comes from Adrian Cundy with Emergent & Frontier Capital, LLP.

I'm going to come back to digital revenues and EBITDA in this question. How -- what -- do you have sort of a midterm goal of sort of achieving what share of revenues in digital, given that roughly, as you were saying, your cash generation capacity, 20% revenue in digital, 25% in cellular? Do you sort of see digital achieving like 1/3 of the revenue in next 3 to 5 years or more just from a planning perspective? And how much of that do you think will need to be -- can be generated organically versus future acquisitions?

So the dream I have in 3 years, to 50%, 50%. Now we increase our percentage every quarter about 1 percentage point, right? So if you take that, 12% will come from organic growth. But I think as we have executed successfully in certain markets, there will be small opportunities to capture, not only actually capturing revenues or EBITDA by acquisitions, but talent.

We are very well aware of the fact that we are entering into some businesses where we need fresh talent and experience. That's why we acquired an insurance company. We know how to get a license. We can build from scratch. But sometimes it is better for us to actually capture the talent in the marketplace while we grow. So expect us, with this small type of spices in the countries that we operate in, which will not be big acquisitions, but it will give us the talent and the businesses and the products and the customer base. So I do like to see in 3 years from today, a 50% -- 50-50 balance in terms of our revenues.

And share of EBITDA would be similar given the cash generation?

Yes. Exactly. I think we will continue executing on the business model that I described before. Yes. .

Just an extension of that and maybe tie it in with the broader asset-light strategy, I mean, we've seen some announcements in Uzbekistan where you -- where there's been a small investment in data center. We've seen in Ukraine, of course, an investment in solar. And your Ukraine CEO has commented on previous calls that there is a dream in -- midterm dream in the country of building something up like a next-gen fiber network or an infrastructure network for the company along the lines of OpenNet in the U.K. or Singapore's [ Netlink Broadband Trust ].

How is that -- how are you going to juggle those 2 sort of things with the -- I mean you've made comments earlier on these calls about your resolute commitment to really keeping CapEx-light, and I think you've done so far so good with the sales ratios you have, the intensity. But what's the long-term -- how do you plan on juggling these sort of the necessity of, if you will, of things like data centers with a digital business, centric business?

Look, we are committed to being an asset-light company, and we will continue executing on that. But also, we are not dogmatic. There are realities in different countries. And Ukraine is one of those countries. This is a country which has a systemic gap in energy generation and distribution. Therefore, when we see the opportunities, especially from the perspective of hedging also the cash we generate in the country, we are looking for assets which are already revenue and EBITDA positive, accretive, to invest in.

With the acquisition that we have done in the solar generation, which was 15 megawatts, I would like to reach at least 30% of our energy consumption in Ukraine to be generated by our own solar capacity. And potentially, who knows, this is a country that needs rebuilding and reconstruction. And I would like to be part of that. But still we will keep in the midterm perspective and a road map for getting asset-light again.

So don't be surprised if you would do temporary investments in asset-heavy businesses in Ukraine. But later on, quickly move into finding the right investors for those type of assets as we execute our strategy. But our asset-light strategy has not changed. As I mentioned, country by country, it can show certain differences. Yes.

Our final question comes from Ali Zaidi with Inam.

So my question is like with Jazz MMBL now established as a digital financial ecosystem in Pakistan and with TPL also coming in, what do you think would be the relevant next steps of the digital financial ecosystem in Pakistan? And do you see enough growth within the loan book and the user base to like justify a stand-alone IPO?

Yes. Thanks a lot for the question. As I mentioned, in Pakistan, currently, we operate under certain microfinance bank license metrics. And those metrics require us to limit our loan book and growth to certain lower level limits. I look forward to upgrading our license to a full digital banking license in Pakistan, and that will, of course, open up new growth opportunities for us. I expect those things to be happening throughout this year. And as those happen, I think we will be in a better position to look into opportunities to monetize this asset.

We are very happy with the performance. I think the potential is huge. Keep in mind that Pakistan is a 250 million population country. And more importantly, a significant diaspora outside of the country doing quite a lot of remittances. 30% of Pakistan GDP comes from remittances coming from other countries. So being a real digital bank, ability to have foreign currency translations and a much wider base for lending, I think, is a huge opportunity in front of us. And I would like to first see that opportunity realized.

We have no further questions at this time. I will now hand back to Anand Ramachandran for closing remarks.

Thank you, James. Well, guys, thank you so much for joining us on the call. It's a pleasure as always. Any further questions, please do feel free to reach out to us and we'll be happy to assist with that in an instant. We look forward to seeing you in the next quarter. Till then, all the best.

Thank you very much. All the best.

Hello. Good afternoon, and good morning to everyone. Thank you for joining us today for VEON's Third Quarter 2025 results for the period ending 30th September 2025.

My name is Anand Ramachandran, Chief Corporate Development Officer for VEON. Allow me to introduce our senior management in the room today. Next to me is Mr. Kaan Terzioglu, our Group CEO; and next to him, Mr. Burak Ozer, our Group CFO. Today's presentation, as usual, will begin with the key highlights and business update from Kaan, followed by a discussion of the financial results from Burak. We will then open the line for Q&A.

Before we begin, please note that today's presentation may include forward-looking statements, which involve certain risks and uncertainties. These statements relate to the company's anticipated performance, 2025 guidance, market development, operational and network investments and the company's ability to realize its targets and initiatives. Our actual results may differ materially due to risks detailed in our annual report on Form 20-F and other filings with the SEC. The earnings release and presentation, including reconciliations of non-IFRS measures are all available on our Investor Relations website.

With that, let me hand it over to Kaan.

Thank you, Anand. Good morning, good afternoon, and welcome to everyone. Let me begin with a remarkable milestone. In September, our monthly digital service users surpassed monthly telecom SIM card users for the first time, a defining moment in our journey as a true digital operator. This signals the scale of the opportunity ahead of us and the extraordinary growth still to come.

Across our footprint, more than 0.5 billion people, and we see a rising digital adoption, expanding connectivity and powerful demographic momentum. These markets are not just large. They are accelerating, underpinned by innovation and low base effects that create multiple vectors of sustained growth. At the heart of this opportunity is our digital operator model, uniquely positioned to capture and drive this transformation. By combining connectivity, digital platforms and financial inclusion, we are unlocking sustainable growth and enduring value creation for customers, communities, governments and shareholders alike.

And now let's start the key messages from our Q3 results. I am pleased that we have delivered another strong quarter, starting with our financial performance. Our revenues grew 7.5% year-on-year in U.S. dollar terms. U.S. dollar EBITDA increased by 19.7% year-on-year. This is yet another $1 billion-plus revenue quarter and a $0.5 billion plus EBITDA quarter. On the back of this performance, we are raising our fiscal year 2025 EBITDA outlook. We now expect 16% to 18% EBITDA growth for the year in local currency terms, up from 14% to 16% earlier.

Second, we are driving exceptional momentum in expanding our digital services portfolio. Direct digital revenues grew 63% in U.S. dollar terms and now contribute 17.8% of our total group revenues. Our AI 1440 strategy is becoming central to our operations with ongoing work on large language models and increasing integration into Agentic AI-powered customer-facing solutions. We are delivering localized multilingual features at scale through our super app platforms.

Third, we continue to make good progress in executing our asset-light strategy. We have completed the sale of our Kyrgyzstan operations this quarter, further streamlining our portfolio and focusing on core growth markets. Our global framework agreement with Starlink aims to bringing direct-to-sell satellite connectivity to all of VEON's operating markets, ensuring resilient connectivity even in hard-to-reach areas. Kyivstar is on track to launch nationwide coverage subsequent to approvals. Beeline Kazakhstan is planning to launch services in Kazakhstan as we plan to test activities over the next couple of months.

And finally, we continue to deliver for our shareholders. The landmark listing of Kyivstar on NASDAQ unlocked significant value with a current market valuation of $2.8 billion compared to $1.25 billion of equity, which is 2.3x of its book value. We retain an 89.6% stake in Kyivstar, which is worth $2.5 billion at Kyivstar's current market price. We are pleased that uncertainties regarding VEON's going-concern status have been mitigated, reflecting stronger liquidity and a more resilient balance sheet. And finally, our Board has approved another $100 million share and/or bond repurchase program, a clear demonstration of our confidence in our growth prospects and our continued commitment to deliver value to all our investors.

Let's move to Q3 key financial metrics. Let me summarize our performance for the quarter. Telecom and infrastructure segment revenues on a like-on-like basis that adjusts for TNS+ this divestment grew 3.5% versus the reported 0.5% number that you see on this page. This reflects the impact of our differentiated networks, products and services in continuing to drive ARPU and subscriber engagement while reducing churn.

Our direct digital revenues were up 63% and represents 17.8% of total group revenue. On profitability, our EBITDA margin continues to grow. Year-to-date margins have expanded by 320 basis points year-on-year and reflect both scale efficiencies and cost discipline. Last 12-month EPS stands at $8.89, up 60.2% year-on-year. However, the reported EPS for Q3 alone was a loss of $1.84 per share as we recorded 2 noncash charges totaling $259 million. First was a charge of $162 million related to the SPAC sponsor shares in connection with the Kyivstar listing, which is treated as a share-based compensation according to IFRS and has been recognized in the third quarter. Second was a charge of $97 million for the sale of our Kyrgyzstan business, triggering a cumulative currency translation adjustments.

For the avoidance of doubt, Q3 results has contributed $76 million to our shareholders' equity. I will emphasize that these noncash charges have no impact on VEON's underlying operational performance, cash generation or financial guidance, which remains firmly supported by our strong organic growth and margin expansion across our key markets.

Moving on, our last 12 months CapEx intensity, excluding Ukraine, was 17.7%, and it is in line with our guidance. Net debt, excluding leases, stood at $1.72 billion as of September. The improvement in leverage to 1.13x reflects our operational and financial discipline and the success of our asset-light strategy. Our last 12 months equity free cash flow reached $584 million. Finally, we ended the quarter with a cash balance of $1.67 million, including $653 million at the headquarters level.

Let's look at our growth trajectory, and I will highlight 3 key points. First, on a like-for-like basis, which adjusts for deconsolidation of TNS+, the Uklon acquisition and the sale of Deodar and Kyrgyzstan business, our revenues would have grown 10% in U.S. dollars versus the reported 7.5%. Secondly, our EBITDA rose 19.7% in U.S. dollars, underscoring the resilience of our strategy and the quality of execution. Finally, I am pleased that our momentum continues to exceed inflation and nominal GDP growth, showcasing our ability to implement fair pricing while capturing greater share of customer wallet share.

Let me dive into our digital revenue performance. Starting last quarter, we began breaking out the components of our digital service revenues to provide you with greater transparency into growth and potential of our digital businesses. Let me make 3 points here. First, financial services are the largest component, accounting for 54% of total digital revenues, growing 33% year-on-year. Second, growth is pretty broad-based with solid contributions across our entertainment, ride-hailing, enterprise and premium digital brand segments. Third, our sustainable cost advantages are how our low customer acquisition costs and optimized distribution model is driving this growth. These enable us to scale profitably and maintain strong unit economics.

Let's look into our progress with regard to multiplay users. Multiplay users count customers that use at least one digital service in addition to our voice and data connectivity services. Multiplay is a key feature of our digital operator strategy and growth story. 4G enables multiplay, making increased 4G adoption is a key growth driver. And it is this 4G base that is increasingly shifting to multiplay, driven by our extensive and relevant suite of digital products and services.

The multiplay segment drives growth through stronger customer engagement, higher data consumption, more frequent usage of voice services, improved retention and ARPU expansion. Our multiplay customers generate 3.8x the ARPU of a voice-only subscriber. Encouragingly, this ratio continues to sustain even as multiplay adoption expands as a proportion of our overall subscriber base. In the third quarter, 55.4% of our total customer revenues were generated by multiplay customers, and this segment grew revenue-wise 23% year-on-year.

Let's look into different operations growth performance. And I'll use local currency terms across our markets for this. We have delivered strong double-digit revenue growth across all of our markets, apart from Bangladesh. While the headline revenue growth for Beeline Kazakhstan shows as single digit, revenues on a like-for-like basis, adjusting for TNS+ deconsolidation was up 23.3%. In Bangladesh, we are encouraged that the revenue returned to year-on-year growth for the first time in 14 months in September 2025. Our profitability trends across markets were strong as well. Headline numbers for Beeline Kazakhstan and Beeline Uzbekistan were impacted by tax effects. However, after adjusting for these, organic profitability trends remain very strong.

Finally, please note that our consolidated financial results for Ukraine include full consolidation of Ukraine Tower Company, UTC, whereas the stand-alone disclosures for KGL Group that are also released this morning excludes UCT. We can take specific questions and discuss market-specific issues during the Q&A session.

Let me now turn into the Financial Services business success story in Pakistan. This business is the largest component of our Financial Services business, which I have highlighted earlier. This quarter, we completed the operational separation of JazzCash. JazzCash will continue to provide technology and services to MMBL. Both are now fully owned subsidiaries of VEON. This is a key step in accelerating growth and unlocking value across our digital financial services portfolio.

The business continues to deliver strong growth, as you see on this page. Gross transaction value for the quarter rose 40% year-on-year, representing 13% of Pakistan's gross domestic product on a last 12-month basis. This was driven by a 48% increase in total transactions and a 38% increase in transactions per user. JazzCash with its over 700,000 merchant base processes over 80% of all Raast payments value under the Prime Minister's Cashless Society initiative.

Loan origination expanded sharply this quarter with the daily average number of digital loans rising by nearly 26%. The average of 153,000 micro loans disbursed on a single day in Q3. More recently, JazzCash achieved a major milestone with its highest ever single-day lending disbursement of PKR 1.1 billion through 200,000 loans. We are extremely proud of what JazzCash has achieved. With its trusted brand, deep market reach and a growing ecosystem, JazzCash is leading Pakistan's rapid transition to a cashless economy and is positioned to unlock meaningful long-term value for VEON.

Let us now have a closer look at the continued momentum of our digital ecosystem. We continue to see strong and broad-based growth across platforms with the total monthly active users growing now to 143.3 million, up 39% year-on-year. Our digital-only user base has more than doubled to 50 million and now represents nearly 35% of our total digital users.

As I highlighted earlier, digital engagement exceeded mobile engagement for the first time in September, an important milestone that highlights how our platforms are becoming the primary customer interface and unlocking new opportunities for cross-sell, advertising and digital services monetization. Over the last 12 months, transaction values grew 50% to reach $48.8 billion throughout our financial services platforms.

Let's look in a more detailed outlook to our digital portfolio, and we focus on consumer-centric platforms on this page. Our Financial Services segment has increased by 25% to reach 42.1 million users across all platforms. I highlighted JazzCash earlier. Simply in Kazakhstan, Beepul in Uzbekistan continue to scale their roles as the financial layer of our digital ecosystem in their countries.

Our entertainment platforms delivered a strong quarter as well. Tamasha in Pakistan and Toffee in Bangladesh achieved record levels of engagement, fueled by the excitement of Asia Cup Cricket tournament. This also drove a sharp uptick in advertising demand. In Ukraine, Kyivstar TV's revised partnership has elevated direct customer engagement to an entirely new level. Meanwhile, BeeTV in Kazakhstan and Kinom in Uzbekistan continued to gain solid traction, reinforcing the growing strength of our regional entertainment portfolio.

Our super apps continue to scale, positioned as one-stop digital hub. These platforms are seamlessly integrating essential services from health care to entertainment and driving deeper customer engagement across our footprint. Uklon's ride-hailing service reached 3.6 million users and recorded strong growth in active riders, trip volumes and digital engagement in Ukraine and Uzbekistan. Our premium digital brands, spanning life cycle, digital identity, productivity tools saw users grow strongly to 3.3 million. With evolving lifestyle and content integrations, these platforms are designed to meet evolving customer needs with curated high-value experiences.

Let's move to our enterprise platforms. These platforms are transforming from internal enablers to market-facing technology leaders, driving next generations augmented intelligence and innovation. This opens up new revenue pools and strengthens our position as next-generation digital operator. QazCode, Kyivstar Tech, Garaj, U-Code and bCloud are winning new contracts, delivering augmented intelligence solutions, cloud services and data center solutions to corporate and government clients, expanding our presence in fast-growing enterprise technology markets. Across these companies, we have now nearly 2,000 engineers, software developers, data scientists executing at scale to build commercializable next-generation digital products.

Our advertising technology business, VEON AdTech, is scaling rapidly, powered by augmented intelligence and big data. It reaches over 70 million screens across our footprint, delivering measurable return on investment for advertisers. Built on our own AI and data infrastructure, the platform provides 360-degree advertising ecosystem, enabling precise audience targeting, real-time optimization and creating a powerful new monetization layer across our digital portfolio.

Let's turn now how we are embedding augmented intelligence across our ecosystem. We call it AI1440, augmented intelligence for every single minute in a day. In Kazakhstan, our Kaz-LLM is now alive in 4 languages, Kazakh, Turkish, English and Russian. -- powering agentic features across multiple platforms. In Ukraine, Kyivstar Tech is co-developing the country's first sovereign Ukrainian language model with the Ministry of Digital Transformation, a landmark step in building national AI capabilities. We will extend this capability to Uzbek, Bangla and Urdu and deepen market-specific intelligence.

Across our applications, AI is becoming truly agentic and reshaping customer engagement from self-service to entertainment and education. In entertainment, AI recommendation engines now reached nearly 35 million monthly active users across Tamasha, Kinom, Kyivstar TV, [ Rithmm ] and Hitter. On Tamasha, AI already drives over 1/3 of all live TV sessions and nearly 60% of video-on-demand plays. Its AI news channel has alone became the third most watched channel on the platform. The news channel is sometimes having male or female news anchors that presents the news on live TV.

In customer care, our SIMOSA AI chat assistant now autonomously manages customer journeys for nearly 1 million users every month. Our customized personal growth solutions are seeing strong adoption with our consumer audience. Janymda AI Tutor engages 17,000 monthly users, while Ryze AI tools processed over 16,000 requests, helping students write their CVs. We are also innovating with AI for enterprise. QazCode successfully launched Aventa AI, an enterprise-grade AI native platform designed to scale agentic workflows across HR, finance and procurement functions.

In summary, augmented intelligence is now a leading layer in our ecosystem, delivering measurable impact for us across all our markets.

I will now hand over to Burak, who will take you through the financials in more detail.

Thank you, Kaan. Looking at group revenues, we delivered total revenue of USD 1.115 billion in the third quarter, representing a growth of 7.5% in U.S. dollar terms. As previously noted by Kaan, the quarter included the deconsolidation of TNS+ in Kazakhstan, the consolidation of Uklon and the sale of Deodar and our Kyrgyzstan business. On a like-for-like basis, that adjust for this, our revenues grew 10%, underscoring the continued momentum across our operating markets. Direct digital revenues grew 63% year-on-year to reach $198 million. Digital services now account for 17.8% of total revenues, up from 11% a year ago.

Turning the page to profitability. EBITDA for the quarter was USD 524 million, representing growth of 19.7%. The EBITDA margin stood at 47% for the quarter, up 410 basis points year-on-year and was supported by operating leverage and disciplined cost management across all markets. We note that our digital services now account for 17.8% of group revenue. While digital margins are structurally lower, their significantly lower CapEx intensity ensures comparable cash conversion relative to telecom services. As our revenue mix continues to shift in this direction, we remain focused on sustaining EBITDA growth at scale while enhancing group-wide capital efficiency and long-term free cash flow generation.

Turning now to the balance sheet. We ended the quarter with USD 1.67 billion in cash and deposits, of which USD 653 million is held at headquarters. Net dividends upstream from operating companies during the quarter totaled USD 96 million and USD 285 million for the year-to-date. Gross debt stood at USD 4.86 billion, up slightly from June and reflected the completion of our USD 200 million bond issuance during the quarter. Approximately half of our external debt is now held at operating company level, providing natural currency hedging. Net debt was USD 3.48 billion, while net debt, excluding leases, improved to USD 1.73 billion, bringing leverage down to 1.13x EBITDA.

Let me now hand the call back to Kaan.

Thank you, Burak. Let me conclude with our outlook for the year. Despite ongoing macro and geopolitical challenges, VEON continues to execute strongly across all markets. We are revising our EBITDA outlook for the full year and now expect EBITDA growth of 16% to 18% in local currency terms for the full year. We are maintaining our revenue guidance of 13% to 15% growth in local currency terms.

In U.S. dollar terms, we expect this to translate to 7% to 8% revenue growth and 10% to 11% EBITDA growth for the full year, assuming no significant fluctuations in exchange rates from current levels. Our capital intensity, excluding Ukraine, remains with 17% to 19% range. These targets are based on a blended weighted average inflation rate of 8.2%.

In closing, we are pleased with our business momentum. Looking ahead, we remain confident in VEON's trajectory and the opportunities before us. As I highlighted earlier, the Board has approved another $100 million share and/or bond repurchase program, reinforcing VEON's confidence in long-term value creation. VEON is well positioned to sustain growth and long-term value creation for our shareholders, customers and communities we serve. Thank you for your attention and support.

Now we can open the line for Q&A.

[Operator Instructions] Our first question comes from Jesse Sobelson with BTIG.

This is Jesse Sobelson with BTIG. I just wanted to ask about the recent transaction involving Kyivstar and the decision to bring the asset public via SPAC. Could you share the motivation for choosing a SPAC structure for this process? And then additionally, you noted that you own nearly 90% of the asset. Looking ahead, how are you thinking about your future ownership stake? Would you consider selling a portion of the holdings to generate liquidity? How would you balance the liquidity versus maintaining control of the asset?

Thank you very much, Jesse, for the question. So with regard to Kyivstar's de-SPAC transaction, we are a true believer in Ukraine's future, and that's why we are championing invest in Ukraine now initiative throughout the world. And we thought it would be the right thing for us to find a deal certain fast track to list Kyivstar. And that's why we have opted for a de-SPAC process. And I'm very glad to conclude it on a successful basis as Kyivstar is now listed in NASDAQ at a valuation, which is 2.3x its net equity value of $1.25 billion at $2.8 billion. I think this was a very, very successful transaction from our side.

Now naturally, SPAC comes with additional cost, given that deal certainty element and the speed of transaction process. But overall, I think being a pioneer in making sure creating opportunities for international investors in Europe and U.S. in participating for the future growth of Ukraine, I think it was the right thing. Now looking with the same perspective, we are keen to allow more investors to invest in Kyivstar. So we will be open for diluting our current position further to allow people from Ukraine, first of all, to have a chance to invest in Kyivstar and any credible international investor to also come in and be part of the success story that will be built in Ukraine. And we will continue championing our invest in Ukraine now initiative all around the world as well. Thank you.

Our next question comes from Nicholas Paton with Edison Group.

Just a quick question on Kyivstar. There's quite a lot of cash at the head office level. I think it's $600 million or so. What's the plan for that? And how easy will that be to repatriate up the chain?

I think Nicholas, $653 million is the headquarters cash at VEON, not Kyivstar.

Kyivstar $470 million.

$470 million would be the right amount for Kyivstar. And as you know, we are still at war. So Martial law still stays in place. During the Martial law, there are limitations on upstreaming. There is $1 million per company type of a dividend limit. But what we would like to see actually is just in line with our Invest in Ukraine Now initiative, you will see us actually investing in Ukraine. And we have been active with Helsi acquisition and Uklon acquisition. We believe that there is a unique opportunity to build a digital ecosystem in the country. And naturally, based on the needs of the country, whether it is energy resilience, energy storage needs or investing in growth opportunities, we will be also looking into those. But in the meantime, our objective is to make sure that we keep our cash safe in assets that are in either generating cash or creating capacity for us to protect ourselves from potential devaluations.

Our next question comes from Adrian Cundy with Emerging & Frontier Capital.

Sorry, my video is not functioning well today. So I just [indiscernible] you can see my picture. I have 2 questions. First, relating to UTC and just infrastructure in general within Kyivstar, will we be seeing you continue to pursue divestment on the Pakistan model of tower assets in the Ukraine? Or is VEON planning to retain control of that for the foreseeable future, particularly given that Kyivstar is now talking about a significant network upgrade and is beginning to touch on 5G in line with the national development strategy.

And the second question I have relates to the financial services in Pakistan. Now that JazzCash and the bank are stand-alone entities, how do you sort of see them working with the [indiscernible] business? Can we get some more color on what type of loans are being extended? And finally, do you sort of see further initiatives and value extraction for the Pakistan business?

Well, let me start answering your first question about our tower business in Ukraine. Naturally, it's no surprise, I think no secret that we have a strategy of being asset-light, and we see actually tower operations more valuable under the management of independent tower companies, which allows sharing of infrastructure among multiple operators. So it's no different in Ukraine. So the first step was us creating our independent tower company is, I think, a move in the right direction, but we will be looking for opportunities around sharing infrastructure in the country in a more effective way and ultimately, making sure that the tower operations are owned and operated by an independent party, which can further focus on marketing activities of this infrastructure.

There are multiple benefits of separating towers from the operating companies. As you know, our telecom industry has been heavily penalized by cross-subsidization of business models like infrastructure businesses and service businesses. And in everything we do, we try to avoid that and make sure that we focus on the right customer rather than cross-subsidizing different businesses. So you will see more actions and news on that front. We are one of the biggest infrastructure providers, of course, in Ukraine, but I believe no telecom company can afford to have its own exclusive networks. We need to learn to share networks, and that's the path for increasing cash generation capacity for our businesses. So -- and that's the first question.

The second question, financial services business. In countries like Pakistan, the unmet demand in financial service area is huge. People who are unbanked, who have no way of having access to financial services is an existing opportunity that we have supported. So that's why we have our microfinance bank, MMBL as well as our digital wallet operator, JazzCash, serving our customers there. We have close to 50 million bank accounts and a monthly active user base of 22 million people.

On an average day in Q3, we issued 153,000 nano loans. These loans are around $30 to $40 in nature. And they are really the type of money that a taxi driver would need if they would have a flat tire or they need to have 1 day advance of putting gasoline into their tank or a housewife would need that $30 to buy some flour, sugar and eggs to make some cookies and sell in the marketplace. These are really the type of loans that provides lifeblood to practically to small businesses, to family businesses, and we are very proud to make this work.

Now naturally, we have also a merchant network of 700,000 merchants. These networks also allow us to significantly drive cashless economy in the country. We operate a significant portion of entire Raast transactions, which is the mobile payment clearance platform, and we transact almost 13% of total GDP. So for us, it's not only being big, but it is being really serving the customers on a daily basis. And this business is growing at 33% year-on-year, and it is, I think, going to be an extremely successful case study when it comes to the digital banking and fintech businesses. We will, of course, be looking into how we can take this business even at a higher scale. And you might see actually some strategic investors also looking into this together with us.

What was the third question again? Can you repeat it, please?

I guess the follow-up is just on that on even a stand-alone, is there any -- are you looking at value extraction or value recognition for your digital assets in places like Pakistan?

I think the answer is clearly, yes, as the opportunities come to the right level and scale. For us, digital services portfolio we have serves 2 important purposes. One is the multiplay strategy that we have on our regular telecom business. As our customers use our digital services, they stay longer with us, they consume more. And then, of course, the direct digital revenue potential of these service lines from entertainment to financial services drives additional growth for us. And to be precise, the ARPU level increase and the churn reduction of digital services impact on our SIM user base has nothing to do with the direct digital revenues that we report. These are 2 different growth. The growth on one side drives our business on telecom side and the other one drives the business on the digital services. And when the right scale arrives, of course, we will be looking for crystallization of the value of our digital services portfolio.

Our next question comes from Ahmed Mostafa with Inam.

I have two questions. Jazz delivered a strong EBITDA margin uplift this quarter. And yet you have indicated that consolidated margins may soften over the long run as digital services say. So how do you manage this trade-off between scale and profitability? And second, you have raised your EBITDA growth guidance for this year. So could you walk us through the main drivers behind this improvement in the EBITDA margin?

Ahmed, good point. We thought the digital services businesses would be having a bigger dilution on our EBITDA margins. So far, we failed on that. Yes, our EBITDA margins are also improving compared to the business as our digital services are growing. But I think I attribute that on really discipline when it comes to operational cost management of our operations. But let me also give the word to our CFO, Burak, anything you would like to add on that?

Yes. On top of the discipline in terms of driving efficiencies on cost side, we are also having disciplined price actions, price increases that we are taking in line with the market conditions that would beat the inflation, devaluation plus the GDP growth. So those 2 combined together definitely is helping our margin.

Our next question comes from Vincent Fernando with Zero One.

We can't hear you yet.

Operator, shall we try again move to the next question maybe come back to Vincent.

Can you hear me now?

Yes.

I apologize for that. I just want to ask again on the JazzCash and MMBL. Now that you have these more operating independently, do you plan to also try to take some of the capabilities in that -- in those businesses and then maybe bring it to expand your fintech business in other markets?

The other question is that when you look at the MAUs for JazzCash, it's about 20.6 million, I think, most recently. Your total telco subs are 72.7 million. So there's still a lot of room to actually convert just your existing subs into JazzCash or MMBL customers. So are there other strategies you have to sort of increase the penetration for that as well? Those are my 2 questions.

Vincent, I think you're spot on in terms of both organic and accelerated growth opportunities in this business. Now you need to keep in mind that Pakistan is still a frontier market where 4G penetration as well as smartphone penetration has certain limits in terms of the penetration capabilities. I translate those into upsides that are in front of us. So one of the key initiatives that you will see us focusing on in Pakistan is smartphone ownership. Affordable smartphones will be critical. And they will come up with, of course, their own embedded digital services on top of that.

So we have quite a lot of appetite in this conversion. And I would like to make sure that everybody who is our customer is having access to the digital services, whether it be on financial services or entertainment or health care or education to have access to these platforms. So you're right. In addition to the growth that we see, I think the organic growth can accelerate, and that's the basis of the sustainable growth expectation we have from the marketplace really.

Now with regard to our ability to leverage the competencies and the experiences that we built in Pakistan in other markets, absolutely. And that's why we are very excited about the growth potential in Bangladesh and potentially in Ukraine. And the know-how that we have in terms of risk managing a bank, first of all, but also having credit scoring engines fine-tuned for these type of nano loans, all these capabilities are applicable in all the markets. And of course, our intention is to make sure that we leverage these, just like our intention around making Uklon or Helsi, our health care platform or our ridesharing platform also be available through all the super apps we have in all the countries.

Got it. Just one little quick follow-on on that. So Pakistan, I believe, has a digital bank licensing framework. But I guess under MMBL, you also have a license there. Do you -- is there value in you having one of those digital bank licenses? Or is it that you can actually operate -- you can have MMBL, I guess, operate on parts where you want more banking services, JazzCash and payments? Just want to understand if that's something that's part of the road map or maybe just not needed?

We operate currently under the microfinance banking license. However, I believe that we can do more and we can contribute more to the Cashless Economy Initiative of Prime Minister, that will require us to upgrade our license to a digital bank, full digital bank license, and we are in the process of looking for ways of achieving that sooner rather than later. I think the success story of JazzCash is very visible and recognized very strongly by the Pakistani government as well. They want the same. We want the same. And I think we will get to a level of much higher capabilities if we upgrade it to a full digital bank license, and we are working on it.

Our next question comes from Ali Zaidi with Inam.

So my question is related to ride-hailing. We have seen that it already contributes -- it's like the third largest contributor to the digital revenue. So do you have any plans to like explore other markets for this business, specifically Pakistan considering recent exits of the major player in that country. Do you see a potential for like an entry and growth in this segment?

So Ali, the ride-hailing business is really -- when you look to the markets, it's a city-by-city operation. So currently, it operates in 28 cities, 27 of those cities are in Ukraine. One is in Tashkent in Uzbekistan. And we clearly have an ambition and appetite to grow this business in a certain priority list to other markets. Whether this will be starting from Kazakhstan or Pakistan or at the same time, we are working on different sort of initiatives, but it will be a city-by-city decisions as every city has different characteristics.

Our next question comes from Matthew Harrigan with The Benchmark Company.

I feel more confident in putting out a positive VEON preview than I do on T-Mobile or Comcast, which is -- I'm not sure whether that's good or bad from my perspective. But one thing that's interesting and clearly, the dynamics for you are different because you're such a market leader. But when you look at T-Mobile in the U.S., they have a very strong benefit from switching share relative, obviously, Verizon and AT&T to other large competitors that don't have as good a network, but still definitely big animals that they're wrestling with.

And if you really assume that there's not a lot of growth in the U.S. mobile market, just by virtue of their switching share, they can continue to put up really, really nice numbers. And your -- that analysis, I guess, would be pertinent to you on the full gamut of apps that you're running as well as mobile. But are you such a market leader that anything that comes along with device innovation or any perceptions of network quality don't affect you that much because almost by definition, you're so much larger than your competitors that it's -- you almost definitionally have to erode a little bit? Or do you think that as you do get CES, you see -- and I know people are not buying iPhone 17 Pros in Pakistan very often.

But do you feel like with switching share and device innovation and awareness of how powerful these apps are and how good it is to have the best mobile network when you're running these apps that it can help you? Or do you think that you're kind of largely a function that just really, really correlates with the overall market growth in mobile and the demand for the app? Sorry, a little long-winded there, but I'm sure you get the gist of it.

Matthew, I think the opportunity that in front of us is exciting from 2 perspectives, not only that we have the digital services, which are attractive to our customers, but also there are so many customers who are still not yet connected even. We're going to be having 90 million additional people who will be having access to 4G networks, who will be buying their first smartphones. And hopefully, those smartphones will be bought from us with our applications installed on them with their ability without having maybe a credit card that they can pay for the services for the games, for the videos for the channels that they need. And that's why I'm excited because, yes, we are big. We are -- except for Bangladesh, we are #1 in all the markets that we operate in. And in Bangladesh, we are #1 if you compare our entertainment platform and the other super apps that we have.

And I truly believe that as our customers who have never touched yet any other service than calling somebody, and there are 40 million of them on our network. Those people will have a smartphone. They will have their first connection. They will watch their first movie online on mobile networks. And we are looking forward to those days and 40 million of them will be there to basically be our customers. That's why I believe the organic growth is an incredible opportunity. That's why I opened it with that slide. But the acceleration that will come through digital services will just be unmatchable as an opportunity for us to grab.

Okay. No, that's -- you're in a better position than having to fight to grab market share in a privileged position, but you kind of are the market growth. That's a good place to be.

[Operator Instructions] Our next question comes from Vincent Fernando with Zero One.

There's a little lag, but I'm here. So I just want to double tap again on the fintech in Pakistan. You reported $23.8 million EBITDA for the third quarter. Are you able to give any color on maybe how much of that -- like where can we start to look at a run rate? Because you did $20.3 million in the second quarter, USD 23.8 million EBITDA in third quarter. I'm just trying to try to find a base for run rate. Is it relatively recurring in nature? I just want to understand that.

Yes. Our financial services business in Pakistan is actually quite a steady growth business. So over the last 6 quarters, every quarter, we have been seeing a continuous growth of 40% to 30% every single quarter. And looking into our future, I see no reason for this to go down. I think we'll continue keeping that lines. Clearly, the lending business has a balance sheet criteria in terms of growth. But currently, I feel comfortable with those.

We have no further questions at this time. I will now pass back to Anand Ramachandran for closing remarks.

Thank you. Thank you. Well, guys, thank you so much for dialing in as usual. Thank you so much for your support of VEON. As always, please e-mail us, call us here if you have any questions at all, and we'll continue talking. But till then until the next quarter, thank you, and bye-bye.

Thank you very much.

Good morning to all people in the room. Good morning, afternoon to the people who dialed in on Zoom. We have about 40 attendees on Zoom. So welcome to all of you. We are very proud. This is Kyivstar's first investor conference since listing. It's a proud moment for us at VEON and Kyivstar. So thank you for being here and sharing this occasion with us.

My name is Anand Ramachandran, I'm the Chief Corporate Development Officer at VEON and handle the Investor Relations functions. To kick it off, I'll just do my duty and point you firstly to the disclaimers, which are all laid out on Page 2 of the presentation, you'll find it filed with the SEC. You'll find it on the Kyivstar and VEON websites.

With that, let me now quickly introduce a few key management members here. Firstly, Augie, Augie Fabela, he's our VEON Chairman and Founder, so we're again privileged to have Augie with us. Next Kaan Terzioglu. Kaan is VEON Group CEO; and then the Kyivstar stars of the show, Oleksandr Komarov, CEO of Kyivstar, who bunch of you have already spoken to on various calls. And with him is Boris Dolgushin, Kyivstar CFO.

So the way we work today, I will request Kaan to just say a few words of welcome. Something we'll follow up with Oleksandr and Boris talking you through a story which most of you know pretty well, but just to quickly summarize that, and then we'll open it up for Q&A. [Operator Instructions]

So with that, let me pass it over to Kaan.

Thank you, Anand. Good morning. It's great to have you all here. Yesterday was a difficult night in Kyivstar, and 17 people passed away during the attacks, including 4 children. I would like to ask also the audience in the Zoom. Just to take a moment and maybe remember the ones who passed away in this national morning day in Ukraine.

Anand said it well. It's a proud day. It's been a fascinating journey. And the journey has been going on for more than 35 years for some of us like Augie, who has been on these type of events for many times probably. I think this is your fifth [indiscernible] in ceremony to come. But the first Ukrainian company to be listed in NASDAQ at the time of a war, I think, marks the resilience of the country. and also the opportunities that lies in front of us in terms of the growth potential that our business in Ukraine will bring.

But let me take a moment because my team here, [indiscernible] and Boris I'm sure they will do a fantastic job talking about Ukraine. But I want to give a little bit about perspective from a VEON level. We are a different type of company. Don't please refer to us as a telecom operator. We are a digital operator. In essence, it means we are a consumer and enterprise services company which happens to have a telecom license. And it is kind of the best of both worlds where we benefit from having low-cost customer acquisition and where we are leveraging our amazing distribution capabilities for the digital services that makes impact on lives and livelihoods of individuals, businesses and countries.

That's what we call the Digital Operator because compared to a traditional telecom company, which has a very limited relevance for the customers, it's actually about 32 minutes to be precise. On average, people do 17 minutes of calls out and receives 16 minutes of calls in. We would like to have a relevance for every single minute in a day. That's why we call it DO1440, Digital Operator 1440 minutes. Every single minute of the day, we would like to be relevant to our customers. Relevant to our customers in terms of providing them entertainment services, financial services, communication services, health care, education and for our business customers, enterprise services from cloud to data centers, to software development and system integration.

And that's really the business that we are here to talk about. You may have seen our second quarter results. And we are very close to the quiet period. So I'm not going to talk about, of course, this quarter's trends, but you may have noticed we have reached now 18% of our revenues coming from direct digital services. These direct digital services are actually coming from customers who are consuming our financial services and their interest income, insurance premiums. They are advertising revenues, they are subscription revenues, and this is growing about 60% year-on-year. In 3 years from today, we will be sitting in this room looking to a company generating more than 50% of revenues from digital services.

We believe that the future of telecom industry is not anymore providing number of minutes, number of gigabytes, number of SMS. It's about providing meaningful digital services. That's why we call it Digital Operators, DO1440.

Now it's not going to stop there because we are all in the middle of an incredible transformation to what we call augmented intelligence. And I'm choosing my words very carefully. I'm not using the word artificial intelligence. There is nothing artificial about artificial intelligence. It's the most wrongly named technology that I have ever seen in the last 3 decades. This is about augmenting skills, competencies of individuals, of companies, of countries to make them more competitive, more effective, more productive. And you will see us successfully implement also local language models, which will be agentic features for our customers so that the best teacher can be in Islamabad. The best doctor can be in Dhaka. The best family, the way they are coaching their kids will be in the countries that we will be at.

Those agentic features are already out there integrated to our applications, especially to super apps. You will notice very fast that we are a multi-brand operation. We are Jazz in Pakistan. Aamir is there. Actually, if you would like to ask more questions about Pakistan, our CEO of Pakistan. We are Banglalink in Bangladesh. Johan is here from Bangladesh. We are Kyivstar in Ukraine. We are [indiscernible] in Kazakhstan, and we are Humbi in Uzbekistan. We serve a total of 0.5 billion population. One out of three is our communication services customers. One out of 4 consumes our digital services. And that's the future of the VEON that we are all excited about.

I will stop there. We are all here to answer your questions. I would like to welcome almost more than 40 people online as well, listening to us, and I would like to pass the word to Ukraine, which is the topic of the week. Again, we are very proud that we will be -- we are already trading in NASDAQ, and we will be ringing the bell tomorrow, and we will be actually running the symposium for invest in Ukraine now.

I am sure amazed and impressed with the investor interest in the Kyivstar's IPO. We have the record-breaking 25% redemption rate shows actually the appetite of investors in the business opportunity in Ukraine. And we have already 2 research reports out with target prices of [ 16% and 19.8% ]. I think it gives lots of weight on shoulders of Sasha and Boris and myself, and we are ready to take that additional way. Thank you very much, and Sasha. the floor is yours.

Thank you very much. Yes. Can you imagine how difficult to present something after combat. So let me start with the introduction. I know maybe it will be the first time for the share of the audience, but still. So myself as Oleksandr Komarov, I'm CEO of the Kyivstar Group, I'm Ukrainian, I'm based in Ukraine and somehow I'm proud to be Ukraine and taking into account the current circumstances, okay? It's a privilege to be the CEO of the Kyivstar Group Business. Kyivstar is almost the same age as Ukraine independence, okay? So company is 27-plus years old. And I think that during these years, the company has proven its ability first to compete. From number 5, 6 telecom player on the market, we are stable #1 with a significant gap, again, the closest competitor.

Two, develop, so company was a late comer into the fixed broadband business, okay? And during the 10 years, we achieved #1 position with sustainable 14% market share. And to transform, right now, we are probably facing the major transformation of the Kyivstar Life from the telco operator to the digital service provider with the telco license. And I'm here to present a unique opportunity to invest into the one of the business -- one of the best business in the Eastern Europe by many metrics, and I will prove this during this presentation. This is an opportunity to invest into the Ukraine and Ukrainian recovery, and this is opportunity to support Ukraine in a very difficult time.

My own career my major roles during my career actually were in two businesses, in telecom and in advertising business. So last 20 years, I'm leading different organizations and with quite remarkable results achieved. So I used to be sale for small agency that was acquired by WPP in 2004. And I become CEO of the biggest advertising group in Ukraine in 2012, 2013. So we progressed from to 0 of the biggest marketing communication organization in Ukraine. I joined Beeline Kazakhstan in 2013. I joined Beeline in 2013, okay, as a leader of the second player with something like 30-plus percent market share.

I ended up my mission in Kazakhstan with a leadership position with almost 40% market share, #1 by subscriber, #1 by revenue market share, okay? And I'm leading Kyivstar. And honestly, it's even more difficult to lead market leader than a challenger, okay? So you need to transform, you need to be -- in order to compete successfully, you have to be at least a few steps ahead of the market. This is the only one way. How you can compete. Otherwise, they are grabbing share by share, step-by-step, a share of your market.

So I'm glad to present Boris because since Kazakhstan journey, we are working together as a team. And all this actually success in Kazakhstan and our results in Ukraine were achieved in a cooperation and team work with Boris. So Boris, please.

Thanks, Oleksandr. So I would like to introduce myself. Boris Dolgushin, I have been more than 2 decades with the VEON Group. So I started -- I built my career actually from the linear analyst position, go to like Head of Business Controlling, Head of Finance, CFO positions.

I have been with 10 markets of the own historical presence in CIS countries, Southeast Asia, Central Asia and Europe. So I'm with Kyivstar since 2012 as the Board member and in 2019 joining the operation role. So with Oleksandr we met when I was a Board member in Kazakhstan. So Oleksandr was the CCO and the CEO of this company and kind of a grateful rejoin to Oleksandr, in Ukraine. So when I joined, it was a company, actually, it was predominantly telecom business and predominantly mobile. So currently, we own 5 businesses already, and we are not stopping there. So I think you will like our value creation story that we have presented to you today. Thank you.

So let me briefly present Key Star Group business. Kyivstar Group business literally consists of 3 main lines. The first one and the biggest one is a mobile telco business, which is around 33% of our business. The second line is our fixed broadband business, which is around 6% of our business. Our telco business is growing double digit year-on-year, as you see in our quarterly results, okay? And the third line is the new businesses that we are creating, that we are acquiring, okay, building the Digital Operator, okay? So our digital business right now achieved 10.3% at the end of Q2 2025 with the growth rate 460% year-on-year. And this growth is not only driven by the Uklon acquisition. This growth is driven by mid-double-digit growth of Kyivstar TV business, healthy [indiscernible] business, okay?

More than 100% growth of our cloud and big data growth year-on-year, okay? And as you have heard, Kaan, so we still have a challenge to achieve group average, which is around 18%. So we still have a challenge to catch our friends from Pakistan with an almost 25% as far as I remember, share of the digital business. So we are on the way to build digital operator. We have a very, very strong fundamentals. Mobile telco, we have a leadership position with 47% plus subscriber market share with, let's say, adequate competition on the market between 3 players. It's Kyivstar market leader, Vodafone #2 with 31% plus or 62% market share. And LifeCell was that was recently acquired by NGG French Holding in Ukraine with around 20% market share. Market is relatively stable. If you will compare situation in 2020 versus 2025, the deviation between the players are just a few percentages.

So in a fixed broadband, it's a difficult market with more than 3,000 players. Market was not regulated historically, okay? Market is using that simplified taxation scheme and from my perspective, is abusing simplified taxation scheme. As a result, we have plenty of small, small, small operators. But we are quite confident with the government push okay, to eliminate, let's say, taxation optimization schemes, okay? And with the growing popularity of the 3P proposition, fixed convergent fixed mobile convergence proposition plus entertainment, big players have quite I will say, good opportunity to grow organically and to participate into the market consolidation. During the last few years, 4 relatively big operators were acquired by Kyivstar, Vodafone and Data Group.

So how we are growing, what are the fundamentals of our growth, okay? So as you see, we were able, despite the war, despite the headwind, despite the difficult macro economics, to demonstrate real value creation for our shareholders, okay? Through the constant ARPU growth and how we are able to achieve this. There are a few fundamentals. The first one is technological leadership. Kyivstar is operating the best telco network in the Ukraine. So this is actually the best fixed and mobile infrastructure. okay? And this has been confirmed by Uklon. As an example, once again, in Q1 2025, we achieved all 3 awards simultaneously. The best network by quality of experience, the biggest network by coverage and the fastest network. And this is very much supported by the biggest share of frequencies, okay, that we operate in Ukraine.

The second is growing penetration of data, okay, growing penetration of data customers growing consumption of the data. So LTE right now, we achieved around 65% penetration into our customer base and overall data customers are more than 70% from our current. And we are still growing. Yes, we are not growing like in 2018, 2019, but this is still reasonable mid-double-digit growth year-on-year in data consumption.

The first -- the third factor is disciplined inflationary pricing. So taking into account a quite heavy license obligations, okay, necessity to beat relatively high double-digit inflation in Ukraine. So we keep in mind a quite simple formula to create value despite inflation and devaluation of the national currency. And the first factor, which is growing in its importance is our digital value proposition.

On the right side of the slide, you see penetration of the multi-play customer. Multiplay is our healthy telco customer who is using at least one of the digital services provided by Kyivstar. So right now, you see we have 6.5 million multiply customers. And in general, we have around 30.4 million, okay, digital customers. Literally, I can say the Kyivstar Group providing services to every Ukrainian. We have access to 1 million households, okay? We are servicing 22-plus million mobile customers. We are servicing 13.4 million digital customers in Ukraine. So I can assume that every Ukrainian consume at least one service from the Kyivstar right now.

And this combination of technological leadership, okay, inflationary pricing, growing demand for data okay? And digital value proposition that is a result of successful execution of our strategy, okay, drives us towards the future growth and popularity of our services. And then absolutely sure that we have significant opportunity ahead of us. Ukraine right now is actually has the lowest -- one of the lowest ARPU in Eastern Europe. So with all our achievements with 30% growth of ARPU in a hard currency during the year since the beginning of the -- we are still more or less on par with Moldova, okay? We are 2x lower than average Eastern European ARPU. And we are 3-plus times lower than average Eastern European ARPU.

So this is the situation. So I'm quite confident that market has strong potential. And it is up to us, our strategy is to unlock this potential for the shareholders and for the market development because at the end, it is very much about investments into infrastructure, investments into the digital services and strengthen the resilience of our network. In a quite difficult circumstance. I hope that it will be supported by strong GDP growth.

What you see right now is a conservative scenario, conservative scenario based on the, let's say, assumption that war will stay with us. In case of any successful resolutions and cease and peaceful resolution, most probably we will face in times higher GDP growth, much more direct foreign investments sponsored by public company sponsored by governments that will let Ukraine an economy to fly. I had a lot of meetings with journalists during this week in New York, okay? And I see Ukraine, as a country that will be a member of the European Union during the next 5, 7 years. I see Ukraine being supported by the European community. I see Ukraine as one of the best countries to do business in order to, let's say, relaunch Ukrainian economy and to accelerate it in the nearest future.

From ARPU perspective, so let me give you some insights. -- according to the JSMA ranking, Okay. So Kyivstar is one of the best telco businesses in the world by many metrics. We are #2 by churn. We are among top 5 by growth rate -- among top 15 by growth rate. And we are among top 5 -- actually the #2 by marginality according to the Q2 ranking right now. But by ARPU, Ukraine is in between Iran and the Mozambique, unfortunately. It's country number 131. So I'm quite confident that we have significant window for the future market growth.

The fixed market is a different story. Somehow, in our strategy, this is one of the strategic priorities. This is the area where we can achieve organic accelerated growth and nonorganic growth through the consolidation. So my own opinion that market player is actually an unsustainable model. It's just a matter of any kind of regulation. It's just a matter of consolidation. So it's just a matter of the next technologies that are coming.

From my perspective, and we are ready for this, we have to accelerate our organic growth based on our value proposition, and this is convergent value proposition. Right now, from 100% of our fixed broadband customers 80-plus mobile customers. And from 100%, 34-plus percent are entertainment customers. They are customers of the Kyivstar TV platform. So this creates a quite unique competitive advantage, that we want to scale up in order to develop our fixed business. In order to grow, and we are ready for acquisitions. So we are ready to consider any interesting target, in order to accelerate our growth in the fixed broadband business.

And of course, the main focus of our current transformation is DO1440 strategy, okay? We have 2 interrelated but separate strategies for the B2C market and for the B2B market. So in B2C, as you see, we are focused on the multi verticals, with high engagement of the customer base. So as I mentioned, we have 13.4 million, monthly digital active users. And from this, and it contributes from my Kyivstar ecosystem application. Kyivstar TV, 2 million plus customers. This is a modern entertainment platform with more than 300 TV channels with 20,000 titles on demand, with different subscription models, that is growing around 40% -- 40-plus percent year-on-year.

So Helsi business. Helsi is information system for the hospitals. This is actually a bridge between all the Ukrainians and the Ukrainian hospital system. So in order to get access to the doctors, every Ukrainian is going through the system like Helsi. And we have just 2 competitors. Helsi is a market leader with around 42% market share, with almost 1,600 medical institutions with access to 60,000 medical professionals, and with the million customers. We recently launched a subscription packages based on the Helsi services. We see significant opportunity in developing our B2B business, but at the same our main focus is how to develop B2C value proposition based on the current assets we have in Helsi.

Our recent acquisition right here in Uklon business. It's a market leader, that is operating in 27 cities in Ukraine and in Tashkent, in Uzbekistan. With -- I will provide you a few metrics based on the Q2 results when we integrated Uklon. With more than 40 million rights provided in Ukraine and Uzbekistan with more than 1 million deliveries, orchestrated to the customers, with more than 100,000 drivers, who are providing services. This is the biggest ride-hailing platform with enormous opportunity for horizontal expansion and for the international expansion.

In the B2B side, we are very much focused how to enrich telco value proposition to our B2B customers with the services. And these services are big data, cloud cybersecurity, [indiscernible]. For your understanding, we have penetrated from our, for example, large account segment, more than 40% of our large accounts are buying something on the top of the telco services. Izi Cloud, Microsoft licenses, for example, Azure, Amazon Cloud, Kyivstar Cloud. So we are developing multi-cloud strategy. So customers can get from Kyivstar access to the national cloud built by Kyivstar, access to the international big players in a comfortable way because there is no one solution for the customers. Customers are looking for a variety for different purposes.

And this business is also growing in times actually year-on-year in our portfolio. So our idea is to differentiate ourselves from the telco simple commoditized value proposition. So we are not just a telco provider. We are a provider of the digital services who can help you to grow your business who can help you to make your business more efficient. These are a few details about our digital verticals, I will probably skip it because I have provided this information on the previous slide.

And let me summarize my part with a statement that is actually on this slide. So our growth strategy is focused on strengthening our telco value proposition and the expansion of our digital services and conversion of all this portfolio into mutually interrelated value creation machine for the customers.

So with this, I will give a voice for Boris to finalize the presentation.

Yes. First, I would want to summarize the strategy based on the pillars and the statements presented by Oleksandr. So we have two major domains. One is telecom, one is digital. So in telecom, what we are looking at is strengthen our digital leadership. And the moment we are now, and I will also show it in the financial side, I think this is the best moment in for to strengthen our leadership across all telco domains.

So we are very much focused on the value market share, so not subscriber kind of as a number of SIM, but rather a paying subscriber base and the multiplay users, and that's why you see these trends growing. What Oleksandr show on our APRU region these gaps. So although we are growing in growing double digit in local currency ARPU, we are growing single digit even in dollars despite all the inflation and devaluation. So the focus is to grow it further and to bridge it with the Eastern European peers.

And in terms of the broadband business, so definitely, we see a lot of opportunities to consolidate the market. So we are doing both organically with the launch of our FTTH and GPON technologies. And we are rolling out the network kind of for the most intensively even during the world because this is part of the critical infrastructure and definitely nonorganic acquisition, given a super defragmented market.

So on the digital domain, so first, we want to utilize, we are currently in 5 businesses already. So extracting the synergies of these businesses and the new products kind of these businesses allow us to launch and this is one of the focuses. Then we are also targeting kind of more organic targets. So nonorganic and M&A is a part of our strategy. Again, very good moment to buy. So we have lots of interest and assets available in the Ukrainian market. So they are currently traded with a discount because of the war, and we do have the cash that we accumulate in there. So that's why we are reinvesting in strengthening our digital positioning.

So in terms of the growth, so you would see -- and we cannot definitely do the forward-looking statement. But based on our historical and current performance, you would see that we are growing low double digits in our telco business, and we are committed to kind to continue this growth, offsetting the devaluation and inflation pressure. In terms of the digital, we are currently growing by mid-double digits. In some of the products, we are growing by triple double digit, and I believe we would be able to continue this [indiscernible].

So before I move to financials, I want to show you the critical risks that -- like issues that we faced during the COVID, but especially during the start of the full-scale war in Ukraine and how we turn these kind of challenges into the strength and the opportunities for us.

So first, if you look at our subscriber base, you would see a decline of about 1.4 million customers within 2022, and this is the direct impact of the war and the population kind of migrated outside of Ukraine, predominantly to Europe. So some of the populations we launched with the occupation of the Eastern territories. At the same time, we managed to launch these Roam like Home offer. So this offer allow the customers permanently located outside of Ukraine, so let's say, in European Union. So to use our services to top up on a regular basis. So not only we keep the connection with these 1.2 million customers as of the end of last year. So we are also kind of -- don't need to kind of [indiscernible] Yes, and they're a very good part of our paying base.

So the cyber attack that we faced in 2023, and this was the largest cyber attack in the history of telecommunications worldwide, so this was part of the hybrid war. So we managed kind of to completely reshuffle our cybersecurity perimeter. So now currently, it's one of the most protected network, which is also confirmed that all the external audits and tests that we are doing with the professional companies.

So in terms of the network resilience, so I would say that these, I think, one of the most resilient, if not the most resilient network in the world, so as you know, there was a kind of a huge pressure on the energy infrastructure during the war with the permanent selling, like direct sell on the energy objects, and we are very much dependent on the electricity for sure. So we managed to strengthen our network in the way that it can sustain full national energy blackout for up to 10 hours. And this is -- I'm talking about the radio part of the network. So if you take the core parts for actually several ways.

Then the macro factor. So this was, again, one of the biggest challenges we've had. So first of all, devaluation, inflation that we need to adjust. And as you see from our numbers, we have successfully addressed this. So we always try to follow the same approach as we always follow on the market, which we call a kind of inflation or pricing adjusting kind of the inflation level and the GDP growth. And so far, we are able not only to grow again double digit in the local currency, but also in hard currency, which is dollar.

So one of the biggest factors that pressed our marginality. Again, if you compare the generality levels, prewar and now, although we are still top 2 operator in the world according to GSMA was the electricity hit. So electricity prices, they surge almost 3x, since the start of the full scale war, and this is a significant chunk of our cost. The good thing is that Ukraine is fully integrated into European electrical grid. So the prices are balanced with the Eastern European markets for Ukraine. So we don't expect further surge of these prices beyond Europe, and this is fully reflected in our financials. So kind of what you see, it's a kind of our organic in result.

So let me move to the numbers. So I will start with the revenue. So Kyivstar has been always financially a very strong company. So Here, we are showing kind of the last 3 years starting from 2023. And you see that despite the COVID, despite the full-scale war, we continue growing. So we are EUR 1 billion company. So we have some nonorganic adjustments in 2023 and 2024 related to the cyberattack. So this was not a direct loss from the cyberattack, but our intentional kind of a move to -- for the customer appreciation program, where we gave 1 month of free services to our customer base. So we managed to retain full pain subscriber base and fully restored by Q1 2024. So we can -- like easily -- I mean really say that this was a one-off only related to the 2 quarters between 2023 and 2024, and we haven't seen any negative impacts going forward.

So in terms of marginality, Oleksandr also mentioned, so we are #2, despite the war. So we are, on average, I think, 56%, 57% for the last 12 months. So if you take our Q2 performance, we are performing even better, 58%. So this ability to generate top line into the bottom line. So we are not stopping at EBITDA level, you would see that our cash generation capacity. It's about 30% of our top line, EUR 309 million is the last 12 months cash generation.potential. And this is despite a very high CapEx to a EUR 280 million because usually as a telecom and VEON Group average. So we are investing, let's say, from 17% to 19% of our revenue into our CapEx. But here, we are intentionally reinvesting into this technological leadership given the temporary limitation on the dividend upstreaming, during the [indiscernible] that are relevant to all Ukrainian companies. And we know this business, so this is a very profitable business, so it gives a very decent return, and this is part of our technological leadership strategy.

So finally, I would like to highlight the cash balances that we have. So EUR 450 million. This is post acquisition of Uklon and post acquisition of the minority investment in Helsi. So we are kind of -- we do have a very strong basis, not only kind of to develop our core operations and finance our strategy, but also look at the potential acquisitions. Q2 results, I think many of you saw this. So they actually reconfirm the trend of the growth. So you see 28% of revenue growth even in dollar terms, so definitely, there is a one-off related to the cyberattack 2024. If you adjust for this, we are 23% year-on-year, in terms of the top line adjusted for cyberattack.

So I think what is also remarkable that in terms of revenue, we reached in Q2, 10% of our total revenues comprised now of digital revenue. I remember a couple of years ago when we made internal guidance, we put 5%, 6% is our ultimate target. So we are currently at them, but we are still below the VEON average. So we have -- we had a work to catch up on this digital domain.

In terms of EBITDA, so the same 32% growth in dollars, so adjusted for the cyberattack, 17% and the same, you would see in all the operational KPIs. So for example, the total multiplay users, is absolutely organic growth if we are talking about the second half of the year. And then ARPU, as you can see, again, we are not only growing in [indiscernible] terms. So we are also growing in dollar terms. So we are currently at 3.4.

[indiscernible] a small update on our valuation where we stay now. So I think many of you remember the slides that we presented before the listing. So we target at that time about 3.5, 3.6, I think, EBITDA multiple. So currently, we are at 4.3. So we added about $400 million to the estimate kind of what we presented at that time. So we see our stock price. So the share ownership of about 10 points -- 4% currently owned by the sponsor, the pack sponsor and the external investors. So we will definitely keep control of this company as this is the absolutely strategic asset for VEON. So far, I would say that the trading and the trading results are exceeding our expectations.

And here, I'm giving back to Oleksandr to summarize.

Yes. Let me somewhere, right? So I think it's quite unique asset. So it's a company with a history with a proven track of records, okay? It's a company with a very, very professional team. I will give you just one figure, so our employee engagement level is above 86% despite the Board. We are among top 10 best employers in Ukraine and #1 according to many, many different categories. Have a very, very strong balance sheet. So we are sustainable. So we are in green. We have strategy. We have ambition. We have strategy to achieve these ambitions, and we have resources in order to execute well.

So we are one of the best national brands. So probably we are the biggest consumer brand in Ukraine but at the same time, we are a national advocate. Part of our decision to be here is driven by the opportunity to be the first one, and to demonstrate example and to create opportunity, opportunity for the best investment community, but at the same time, to give an example to the Ukrainian big businesses that it is possible despite the war.

And so I think this is quite unique value. And from my perspective, as it was underlined by respective analysts, so the potential is [indiscernible]. So we know what we are doing. We have extremely good fundamentals. We have a very good team in place. And we are executing with a high quality.

So thank you for your attention. And I will give voice to [indiscernible] to moderate.

So we'll now move towards a Q&A session. Please raise your hands, and we'll then move -- we'll bring mic to you.

A great presentation, guys. Thanks a lot. You're producing a lot of free cash flow. Can you prioritize -- sorry, I think I apologize I actually run with a -- producing a lot of free cash flow, can you prioritize how you're going to -- what are you going to do with that cash flow and how you're going to reinvest that? And maybe can you characterize the opportunity for acquisitions? How much can you really deploy there over the next kind of 5 years or so?

We have 3 major priorities. Probably Boris will add some colors with figures if necessary, but we have 3 major priorities. The first is investment into the telecom leadership, not only in from a general perspective, for example, with direct to sell services that we are going to introduce at the end of this year, this is investments into the innovations. This is investments into the emergency communications taken into account importance of communication for our customers. So this is the first direction.

The second direction is actually resilient. We already invested around USD 100 million into the different aspects of the network and business resilience and redundancy. And we are doing this. So we have some ongoing projects like, for example, our cybersecurity protection project [indiscernible] and others. And of course, the main focus is how to support with these proceeds, accelerated transformation of Kyivstar from the telco provider to the digital service provider with the telco license. And this is kind of internal and external investments. An internal example is a large language model that we are developing in cooperation with the Ministry of Digital Transformation. External example is Uklon, okay?

In M&A activity, we have 3 major focuses. The 1 -- the priority #1 is digital ecosystem. The priority #2 is fixed broadband business. And the priority #3 is businesses that can help us to strengthen, to hedge our business. I will give you one example, alternative energy. So smart investments into the alternative energy can help us to diversify the sources of energy and at the same time to hedge future pricing volatility.

So you have a lot of opportunity to invest in growth. Do you think you can put all that cash to work within Ukraine and investing in growth.

Yes. Well, I can take this one. So actually, we do have $450 million as we shareholders a cap -- so it doesn't mean that this is the limit to follow potential cash potential. So we can really go and have several instruments kind of to increase this cash capacity if needed. So I think when it goes to M&A, so it's about the availability of the good targets on the market because we have like several simple requirements to these potential targets, which is we pay in and in Ukraine, due to the current legislation, we cannot buy the companies directly located a broad offshore of Ukraine.

Second, we are looking for the assets that are very complementary to our strategy that fits into this strategy Oleksandr explained. And third, we look for the companies and the teams, especially who are strong and compliant enough to be a part of the public company. And with these 3 requirements kind of like mapping these and refer to our strategic goals. So it's not about kind of whether we do have cash for this. It's about whether we do have the right targets.

And how many companies are you kind of tracking now as a target one? And two, can you just remind us what have you paid historically as a revenue multiple for acquisitions.

So I think Uklon would be a good example. So it's 155 million -- $153 million that we paid in cash already. So I think the overall transaction would be around $160 million including all the deferred payments. So the multiple would be 7% to 8%, I think...

EBITDA market...

EBIDTA...

Uklon is a real example. On this market because Uklon is a fast-growing business, but at the same time, it's a significantly profitable business.

Congratulations to the Kyivstar team, [indiscernible] sponsor and then team for executing the historical listing of the only Ukrainian assets in the Prestige NASDAQ High-Growth Stock Exchange. Honor for us all to be here. My name is [indiscernible] Liang with Cantor Fitzgerald.

So Oleksandr, I just want to start with you on the long-term strategic vision of Kyivstar. We know Wednesday, you are the #1 mobile player fixed line player. I guess the question is, do you want to be like one of the tech titans kind of like the U.S. like the Google for the world, Microsoft for the world. Do you want to be like a super app kind of like the Tencent of the world that serve many other player because Kaan kicked off the presentation today with you want to attract the customer 24/7. So I just -- I say I just want to get your thoughts on the greater vision.

It's a good question, okay? So somehow our vision is closed to the [ Kakao ] business. when we have ecosystem of interrelated digital services, where we can get, let's say, competitive advantages because of the synergies. Can they mention this mobile telco business is a brilliant low-cost acquisition machine. So as an example. So this is actually producing a lot of big data. If we are able to use this big data in the right way, and I'm considering Kyivstar is one of the strongest big data organization in Ukraine, we are earning around 6% of our top line based on the one-to-one campaigns that automatically generated, right now.

So we are working with a thousand target groups with whom we are communicating on a personal base, in order to improve the quality of experience, and to rise average ARPU as a result. So somehow, this is the layer where we would like to achieve synergies between our businesses. And this is our thoughts.

And in general, I want at the end to award every customer for every step within the ecosystem. So right now, we are on the way to shape this vision with more details. Because we are doing some simple synergies in between Uklon and Kyivstar. We are doing a lot of pilots between Beeline Uzbekistan and Uklon Uzbekistan because Uklon Uzbekistan is a relatively small and flexible business there. And in order to accelerate, we are running around 20 different pilots in different areas, how to attract more riders, how to increase is engagement, how to service in the better way our riders in Uzbekistan. So we are trying to find this way how to build this kind of [ intistic ] synergies for our customers to make them as comfortable as possible because they're using services provided by the Kyivstar Group.

And along the same topic, under, I still want to stick with the M&A side because, obviously, the growth story, obviously, a big part of it is corporate development, kind of using your cash flow from the telecom business to acquire the undervalue asset in Ukraine right now. You have Uklon, which is I believe the Uber of Ukraine. You got Kyivstar TV, another digital TV leader as well as Helsi, clearly the digital leader there.

Does it make sense about what the idea of -- I mean very commented on investing in alternative energy, which is a great idea to hedge the inflation side of it. Does it make sense to add kind of like an e-commerce type of platform like an Amazon or eBay. And on the payment side to close out the ecosystem there?

You're absolutely right. We have right now a few priorities in our future development. and e-commerce plus digital financial services are actually top priorities. So we are looking for the ways how in organic or nonorganic way, we can enter these lets verticals, I give you one hint. Kyivstar together with Uklon, together with Helsi is generating around let's say, $2-plus billion gross merchandise value.

So it's a huge transactional business that is already incorporated into our operations. And we are considering how in the most efficient way to extract value for the organization and to strengthen our value proposition to the customers.

That's my follow-on question with that is, I know for Uklon is you got the right hillside, right? But then you could extend to the full delivery side. Helsi, you could do more kind of like a teledoc, telemedicine. How do you balance all this with understanding you still have to run a telco business? Do you have to increase your resource a lot to extend these organic growth to extract modality there?

We are working in a holding company mode. So we have Helsi as a separate stand-alone organization with 240 employees. We have Uklon as a stand-alone 800 employees. And Chairman of the Board -- of the both boards actually of 2 companies. And my role is to ensure that both companies have ambitious strategy. And this strategy are heavily based on the synergies that can be provided by the group in order to increase efficiency or accelerate growth. So somehow we do not integrate this into the one, let's say, vertical. So we are trying to let every entity, we have an independent ambitious strategy in order to ensure a growth, but to support this growth through the ecosystem cooperation.

Got it, kind of like the Berkshire Hathaway, where you have such...

[indiscernible] Probably the closest example that you can use is actually [indiscernible].

Got it. Boris, I want to turn to you on the financial side. You talked about multiplay customer base I think this is a secret weapon to drive growth and better pricing for Kyivstar. For the benefit of the audience, most multiplay customers is a client that uses 4G and voice connectivity plus one more apps, right? I think it grew 24% to 6.5 million customers, latest data. So my question is twofold, right? The ARPU side, you cited about 1/3 of your peers in Central Europe, Eastern Europe. How would you slowly gradually get your ARPU up to deliver more proposition. That's one side of it.

The other size customer acquisition costs. You obviously have 23 million subscribers, about roughly 22 million. I assume you're going to target the existing customer base to upsell. Does it mean your customer acquisition is very low just because you already have a good population to target? And that's it for me.

I would start with the ARPU growth. So what we see from the statistics is a direct correlation between the penetration of multiplay and ARPU. So let me give you an example. So if you take an average kind of a basic 2G customer who is not using data isn't data very accidentally. So the ARPU may be, let's say, $1.8 to $2. If you take the full multiplay customer, they're not only using kind of telecom services, but one of the other services from the range, their ARPU would go down to the range of $5, $6 -- will go up, sorry, to the range of $5, $6. So that's why an average you get $3.4.

But you see this and the -- I think the key to the growth of the ARPU and the growth of the value is the penetration of multiplay. And kind of when you're selling the customers, let's say, when you kind of modernize the base, you give the value to them. And this value is actually the value that ecosystem break. In terms of the acquisition, although it's a very highly penetrated market, as you know, Ukraine. So kind of we see that the current existing subscriber base, where we have almost half of the market, is the main source of the growth, and this is about developing these base with the services.

But when you are talking about acquisition, acquisition costs or acquisition costs are relatively very low, I would say, in Ukraine. So we are also moving with the digitalization of our acquisition channels. For example, now we're reaching more than 10% of sales in our digital sales and digital sales cost you way less, for sure. And the more you move there. So the more is the kind of per unit cost is declined. That's why kind of -- the acquisition cost is definitely not the burden for the Ukrainian market. So I think the focus is again to find and acquire this kind of real value base and we definitely don't play any [indiscernible].

Yes, we are focused on high-quality acquisitions. So we are trying to avoid some kind of simple, straightforward subscriber market share because market have significant double in penetration. So we are very much focused on a big stable customer base to develop.

Boris and Oleksandr, I'll move to Zoom. There's a bunch of questions here. So I'll ask them on behalf of the participants.

So first question -- a couple of questions from Matt Harrigan. Matt Harrigan with The Benchmark. His first question is you've conveyed how low the mobile ARPU is for Ukraine relative to other Eastern European economies. How do you think Ukraine compares to other economies as far as digital app spending goes per capita basis. And is this a better indication for Kyivstar growth potential than relative traditional mobile ARPUs?

We don't have this specific metric. Most probably we can calculate it, but we are using second metric, which is a share of wallet. And it's not only low from the perspective of absolute ARPU, it is very low from the perspective of the share wallet. So somehow, this gives us a kind of confidence that this is a potential for growth.

Correct. And as you pointed out, if you look at other VEON geographies, there's a lot of potential for that growth as well.

Second question from Matt. How many of the 3,000 fixed broadband operators have sufficient scale and network quality to be attractive for acquisition? And do you see fixed wireless as another revenue to drive broadband growth?

From these 3,000 players is a bit artificial figure. So I think that the real figure is at least 2x less because this kind of cascading of operators is being used for the tax optimization to be transparent and fair. So from this, let's say, 1,000 players, there are definitely more than 100 players, who are worth to consider. This -- our kind of threshold is to consider operators with around at least 50,000 customer base with a complementary footprint because we have our own and very strong footprint, Kyivstar has direct access with the infrastructure to half of the Ukrainian households.

So we have 4 million ports installed around Ukraine. And from this 4 million ports, we have 1 million plus active customers right now. So that's why this is the second criteria. And of course, the third criteria is a reasonable transparency and compliance. But we have a sufficient number of players. So taking into account that we are a market leader with 14% market share. Our closest competitor is Ukrtelecom with 5-plus percent market share. So it's a long tail of midsized operators who can be considered as a potential target for the acquisition.

Fixed wireless.

Fixed wireless as a second question. So yes, we are considering this as one of the initiatives, but it's not a major one. So our approach is to satisfy every customer request. This is our approach. We want to develop. So we are right now building a value proposition that is based on, let's say, reasonable device, monthly fee. But this is also taking into account the fiber penetration in Ukraine. So the number of investments done into the backbone into the last miles. So there is not so significant demand.

Next question is from Nicholas Paton of Edison. He has two questions. Firstly, what would be a realistic target for ARPU growth, let's say, 1 year and 2 years post the end of the wall. So if you could indicate I would probably see it...

If I will ask -- if I answer this question, we can close the meeting.

I agree with you, yes. So Nick, I think the answer to your question is probably more indicative in the relative ARPUs that Sasha has talked about...

It's a trend, you'll see. So yes, we did some declaration during the last Capital Market Day conducted by VEON. So I think you can make a reasonable assumptions based on the figures.

Okay. The second question is, how would you expect electricity prices to trend post the end of the conflict? And a second subpart of that question is how quickly is VEON kilowatt hour usage typically going up given how quickly is Kyivstar kilowatt hour usage going up?

Yes. Let me take the second part of this question, okay? So yes, the electricity price and growth consists of two elements: the nominal price growth and actually the growing network. Growing network consists of modernization and growing number of radioactive elements, okay, so that we are using. So on average, we are growing our network by 1,000 sites during the last 3 years, which is around 5%, 6% from the total number. So let's we can assume the organic growth is driven -- is actually contributing around 5%, 6%, 7% the overall growth. The major factor is inflation.

And as Boris mentioned, so somehow being integrated into the European energy market, we're using almost the same prices. And I think that some point, we are at the peak of the prices possible because it's quite significant pressure on the Ukrainian production, on the Ukraine and economy right now. So because of the electricity prices. More or after the war, it will -- I hope that it will -- it's will be very much depends on what will happen with the [ Zaporizhzhia ] Nuclear Station because with [ Zaporizhzhia ] Nuclear Station back into the Ukrainian grid we have excessive capacity.

Thank you. Before -- there's a couple of more questions on the Zoom, but I just want to come back and check if there are any questions in the room first? Okay. As you think I'll go back to Zoom.

This is from Chris Hoare at New Street Research. Chris asks, given your acquisition intentions? What do you think is a possible figure? Or how much of the cash do you think you can -- you would expect to deploy into digital acquisitions over the next 2 to 3 years? If you had the right amount kind of targets available. So that's question one.

Question two, is there any update you can give us on the possibility of Kyivstar entering the financial services space. and what needs to change in terms of regulation for that to happen.

Let me take the first one. So actually, we do not have such an internal target even kind of what are we going to invest in the acquisition. So this is much more bottom-up. So kind of what targets we have that follow the criteria that I explained earlier, and kind of to what extent we can close this transaction and how fast we can close this transaction. And the financing is actually coming as the secondary issue because we always have kind of for our own funds accumulated in Kyivstar, we can go to the external financing. So financing is not a problem for us. So it's rather to finding the right targets that's suitable to the strategy and to the status of the public company.

So with the DFS services, okay? So it's a different regulator. We have been a regulator as a telecom operator by National Commission okay? For the financial services as a National Bank of Ukraine, there are different types of licenses. There are different types of requirements. And what we are doing right now is trying to analyze. So taking into account our strategic options, what type of license we will need and what types of requirements we have to satisfy. So we are a bit at the early stage to answer this question with all possible details.

Got it. One more question from [ Takahiro Noguchi ]. He asks how will Kyivstar listing on NASDAQ change its relationship with VEON and impact corporate governance, if any? So that's question number one. Question number two, does Kyivstar have any plans to initiate or expand dividend payments to shareholders in the near future?

Yes. So in terms of governance, so Kyivstar Group Limited is a separate public company. So definitely, VEON is the main shareholder of this public company. That's why VEON has a good representation on the Board of KGL, but it doesn't mean it only consists of the VEON Board members. So we have several independent members on the Board as well.

So the group will be managed by this separate Board, and we do have all definitely the committees Nominations and Remuneration Committee, Audit and Risk Committee in place. And kind of -- yes, so we consider it as a separate group and manage it to via the separate KGL, so Kyivstar Group Limited governance next kind of a VEON on governance. So the VEON governance is like totally separate.

The second question was about?

Dividends.

Dividends, yes. So currently, kind of we are working on the fact. So if you follow kind of the developments of the currency control legislation in Ukraine, you would see that the course of time, again, if you compare with the starting point, which is the beginning of 2022. So the regulation is being liberalized -- so currently, they are limited to a very small number, let's say, the company, so the legal entities cannot upstream more than EUR 1 million per month as per the legislation. So we do believe that as long as this liberalization continues can we will be definitely looking at the cash and the cash reserve that we currently have on the account as a more kind of locked up dividends attributable to the shareholders, and they really believe that whenever it's allowed regulator to upstream them. We return to the history of the limited upstreaming that we had up to 2021.

And this was kind of one of the like main point of our capital allocation that we keep and we distribute a very healthy dividend of our operations.

[indiscernible], I'll now bring it back to the room. There's a couple of questions here.

Tim [indiscernible] again from Oppenheimer. Just a few questions. On the broadband front, I think it's around $50 per home pass to construct...

It's close to $100. $100, it depends on the technology, FTTH is a bit lower. FTTB is a bit higher. We are not building FFTB anymore,so it's up to $100.

6 And what do you think the acquisition prices would look like compared to building out on your own.

It's very much in the range of the annual ARPU, okay? So it's a multiple to the annual rate ARPU. And right now, it's significantly deviate from player to the player. But I can say it's probably on average in the range from 2 to 3, yes. 2 and 3 into the annual ARPU.

Okay. Great. And then on the network, where are you with 4G coverage? And when do you start 5G? And will that change the CapEx trajectory?

Yes. So on a 4G coverage, we are at that level of 97% of the population covered by us. We are a market leader with significant gap against closest competitor. With 5G, it's a national strategy. So that is, from my perspective, will depend on the war and cease fire to some extent. But right now, according to the strategy, the earliest, let's say, time for 5G launch is 2027, which I am considering quite ambitious, honestly. But I think that probably end of '27, '28 might be a kind of launch of the 5G services in Ukraine.

So far, we have agreed with the government that we will run a few, let's say, full-scale pilots. And the first one is already in place. It is not activated yet. It's coverage of the central district in [indiscernible] okay? And we confirm that we are ready to cover some areas in [indiscernible] and couple of other cities, but just in a pilot mode.

And do you have a spectrum available to build out 5G, what band would you use? And then maybe you can or -- could you remind us the uplift in ARPU from 3G to 4G that you witnessed historically?

Yes, again, somewhere from 1.8 to 2. So this is the lowest kind of for the basic GSM services going like to 5, 6 per customer, if you are fully [indiscernible] And I'm not talking the highest in the network for sure, but I'm like talking average numbers, the difference.

So -- sorry, what was the first question?

[indiscernible] You have the spectrum available to 5G. Maybe how much spectrum do you control now in total?

We have 200 megahertz from this 200 megahertz, we have 80 megahertz spectrum, okay, which is 160 total, okay? And we have 40 megabits of TDD 2,300 spectrum. So we have reasonable, let's say, bandwidth of spectrum. We are market leader in absolute term. We are #2 in spectrum to our customer.

So -- and we feel ourselves very, I will say, confident with available spectrum. We have the best position in the low-end spectrum of 900 megahertz and 1,800. And we are on par in 2,600, 2,100 with the competitors. So for 5G spectrum is available, especially 3,500, I do not expect serious competition because 300 megahertz right now on the shelf of the regulator, okay? But we are facing an issue with a low-band spectrum. And the only one opportunity is a conversion of the current digital TV national transmission system and 700 megahertz. It's a significant project that most probably would be sponsored by the government or even operators. So -- and here, we might have 20 megahertz of 700 FDD spectrum.

This for taking my follow-up. This is [indiscernible] with Cantor Fitzgerald. So I want to circle back, Oleksandr and Boris on the telecom opportunity. I understand on the mobile side, the 3-horse race. But on the fixed line side, because about 60%, 70% of the market share is still very fragmented. How fast is an acquisition? I know you guys did a tuck-in land acquisition about $2 million a couple of years ago. how fast are you able to roll up the more fragmented part?

It is not so fast, okay? So in our -- it sounds a bit like -- it's not a forward-looking statement. It's our strategic priorities. And in our strategic priorities, we want to acquire, let's say, 100,000, 200,000 customers as a result of nonorganic development. But this is a kind of opportunistic approach. So -- but we will not make this for the sake of the acquisition. We will make this if it creates value for the shareholders.

Got it. Got it. Understood. And then when can start, you talked about augmented intelligence. You also talked about the amount of data repository you guys have at your disposal at Kyivstar. I was wondering if you could tease us on like the large LLM large language models, thought process that you could help augment Kyivstar in the M&A process? Or does it make sense to build it organically or a combination of both?

I think a then combination of BOSS with our latest project with the Ministry of Digital Transformation, we want to actually significantly invest in our own competitors. -- okay? We want to have to secure some kind of IP rights for the future model, not price, but we will have some kind of priorities in utilization of the models and commercialization of the model, okay? And of course, we are consider this will be a national severity model that can be used for the critical enterprises like Kyivstar.

Got it. Got it. In terms of the cloud business, I was wondering if you could like give us a little more color. You mentioned you work with the hyperscalers -- does it make sense on tender for you to be the hyperscaler at one point?

It is possible, okay? So I see this strategy as a kind of evolution, okay? So -- and so I will give you a perspective from the client, okay? Clients have different demands. You can't satisfy all client demands with just international hyperscale first, because there are some regulations. Sometimes clients are not ready to provide their data. So at the same time, they want to have some kind of flexible solutions on site. So at the end, I'm sure that every big client we use all types of clouds. They will use hyperscale on global scale. They will use their own their own cloud, and they will use national clouds for some purposes.

And there are different tasks that can be actually resolved with different types of the clouds. So what we are doing, we are scaling up our capabilities -- so we have started with cooperation with Microsoft. We achieved significant results there. We added Amazon and we are just starting our cooperation with Amazon. But at the same time, we already launched our own cloud and we are ready to scale it up.

And we are also considering can we play some role in the development of the national language model not only from the development perspective but also from the computing perspective. So this is our kind of vision that we are building step by step.

Got it. Makes sense. And my final question, [indiscernible], since we have the VEON Group here as well, and Boris kind of touched VEON when he was talking about separate boards, maintaining product controls and governance. Still VEON obviously is investing for long term, but they still have outsized ownership, 89%, was wondering we could pick your brains from an investor perspective. What is VEON's plan like longer term -- in terms of like maybe perhaps gradual divestiture per se in terms of the ownership.

It's better....

Thanks a lot for the question. And I think you made a reference to Berkshire Hathaway in terms of the model. All our operators in every single country operate independently at their own funding models. And actually, throughout this room, you have independent board members of our local opcos. So we are actually very disciplined when it comes to governing our operations and we kind of work like a private equity as VEON Group as an asset manager. So from that perspective, when I look to the case of Ukraine, we believe we have a responsibility to contribute to the development of capital markets in the Ukraine. And if it will require us to even increase our public ownership of the asset we will not be hesitant to make that move.

We have to be also very clear about one thing. We talked a lot about acquisitions. Actually, as VEON Group, we are extremely disciplined and conservative when it comes to making acquisition decisions. But in the case of Ukraine, we have a situation where we have a lot of underutilized cash on our balance sheet. We have a great team that we trust. And we have a great opportunity that we see of undervalued assets in the country. And this is actually a sign of us delivering on our promise to invest $1 billion to Ukraine to make sure that we actually invest in undervalued assets that will create revenues, EBITDA and cash for us.

Uklon is a good example. Helsi is a good example. There is a healthy pipeline that we look at today that we can easily deploy this. But as we do this, we would like to make sure that more people invest in Ukraine now. Actually from here, we will be heading to a symposium named invest in Ukraine now. And I think if they want to invest in our company, we have to make room for them. and we see this as a responsibility as well.

I think we are running out of time. We still have a few questions on Zoom, but just given the respect timing for people that we've given earlier. I'd like to conclude by thanking you all for taking the time to attend this presentation. Thank you, Augie, Kaan, Sasha, Boris. Thank you all for all your questions. There are a few questions outstanding. We've noted them down. And as always, keep the questions coming to any of us, very happy to deal with them at a later stage and look forward to continuing to interact with you. Thank you.

Hello, and welcome to VEON's 2Q '25 Results Presentation. [Operator Instructions] As a reminder, this conference is being recorded today. If you have any objection, please disconnect at this time.

Anand Ramachandran, you may begin.

Good morning, and good afternoon to everyone. Thank you for joining us today for VEON's second quarter results for the period ending June 30, 2025. My name is Anand Ramachandran, Chief Corporate Development Officer and also heading our Group Investor Relations function. Allow me to introduce our senior management in the room today. Next to me is Mr. Kaan Terzioglu, our Group CEO; and next to him, Mr. Burak Ozer, our Group CFO.

Today's presentation, as usual, will begin with the key highlights and business update from Kaan, followed by a discussion of the financial results by Burak. We will then open up the line for question and answers.

Please note that we may make forward-looking statements during today's presentation, which involve certain risks and uncertainties. These statements relate to the company's anticipated performance, guidance for 2025, future market developments, operational and network developments and investments, and the company's ability to realize its targets and initiatives. Actual results may differ materially due to risks, which are detailed in the company's annual report on 20-F and other public filings with the SEC.

The earnings release and presentation, including reconciliations of non-IFRS measures can also be downloaded from our website.

With that, let me hand it over to Kaan.

Thank you, Anand. Good morning, good afternoon, and welcome. I appreciate you joining us today for VEON's presentation of our second quarter 2025 results. We listen to you, and I'll keep my presentation brief and to the point, so we have more time for your questions and a richer discussion.

We have continued our strong start to the year into the second quarter, and I am pleased that we have delivered a strong quarter again financially, operationally and with regard to progress on strategic objectives. Let's start with the financial performance.

Our revenues are up 5.9% year-on-year in U.S. dollars. EBITDA in U.S. dollar terms grew by 13.2% year-on-year. For the first half, our U.S. dollar revenues grew by 7.3% year-on-year, and our U.S. dollar EBITDA grew 13.4% year-on-year. In local currency terms, our revenues grew 11.2% in Q2, outpacing both inflation and nominal GDP across our markets. EBITDA in local currency grew 19.6%, reflecting our focus on profitable growth. This was yet another $1 billion-plus revenue quarter. Our strong EBITDA performance reflects the strength and the scale of our operating model.

Looking ahead, we are pleased with the growth momentum across our businesses and are revising our outlook for 2025. We now expect local currency growth for total revenue between 13% to 15% year-on-year and EBITDA growth between 14% to 16%.

Second, we are driving exceptional momentum in expanding our digital services portfolio. Direct digital revenues grew by 57% year-on-year in dollar terms and now contributes 16.5% of our total group revenues. Uklon was consolidated effective April 2025. This is a key milestone in our digital expansion strategy and unlocks new growth opportunities for us. We are also accelerating the integration of agentic AI-powered features across our platforms and delivering localized and intuitive user experiences to our customers in their own languages at scale.

Thirdly, we made substantial progress in executing our asset-light strategy. We have closed the strategic infrastructure pooling partnership with Engro in Pakistan. This unlocks significant value for us. In Ukraine, Kyivstar continues to make progress on launching direct-to-cell satellite communications in partnership with Starlink. We expect to launch services in the fourth quarter this year.

And last but not least, we continue to deliver for our shareholders. We completed the third and final phase of our $100 million share buyback program that we have announced in August last year. We have bought back close to 3% of our shares in less than a year since we announced the buyback program. We repaid both our April and June 2025 bond maturities and enhanced our financial flexibility with a $200 million private bond issuance.

We are making good progress with Kyivstar's proposed NASDAQ listing through our business combination with Cohen Circle Acquisition Corp. I. We have secured the necessary investment commitments to secure this transaction. Cohen Circle has scheduled an extraordinary general meeting for August 12 to obtain shareholder approval. Subject to that approval, we expect to close the transaction and launch Kyivstar’s public market [ debut ].

Finally, we deliver on our digital operator strategy, focusing on an asset-light model, prioritizing large population, underserved markets, accelerating and expanding our digital services. We are executing a series of transactions aligned with our strategy. The one-off impacts from these transactions, completion of the ride-hailing business acquisition, Uklon, Deodar tower sales in Pakistan, as well as last year's fiber infrastructure company, TNS+ sale in Kazakhstan, are clear examples of these strategic choices and should be seen as plan progress.

Looking ahead, similar transactions may result in either gains or noncash accounting charges. The upcoming Kyivstar listing in NASDAQ through a business combination agreement with Cohen Circle and the sale of our Kyrgyzstan operations also will fall into this category. These transactions are expected to result in a noncash charge in the range of $150 million to $200 million likely to be recognized in the third quarter. The net impact of these transactions will be positive for our equity. These accounting effects, however, have little bearing on the fundamentals and momentum of our core operations. While we will continue to provide commentary on like-for-like trends, we should embrace the new nature of our business as we transform into a consumer and enterprise services company with a telecom license.

I have already highlighted most of the numbers on this page. I will make 3 additional points. First, on a like-for-like basis, which adjusts for the deconsolidation of TNS+ and Uklon acquisition, our U.S. dollar revenues would have grown 6.3% and our U.S. dollar EBITDA would have grown 14.6%. Second, we saw a slight uptick in weighted average inflation across our markets, up to 8.7% in second quarter. This comes after 3 quarters in the range of 7.6% and 8.2%. But I'm pleased that our momentum continues to exceed inflation and the nominal GDP growth and showcases our ability to implement fair value pricing, while capturing a greater share of consumer wallet. Third, given the pace of change across our business, underlying adjustments have become frequent and short-lived and are adding less and less value to our clear performance narrative. Going forward, we will focus on headline numbers to provide you with more consistent and transparent view of our trajectory.

This slide summarizes our performance for the quarter. I'm pleased that our strong revenue momentum continues, driven by both telecom infrastructure and digital segments. Telecom and infrastructure segment revenues on a like-for-like basis that adjusts for TNS+ deconsolidation grew 2% in U.S. dollars and 7.4% in local currency terms versus the headline numbers you see on this page. This reflects the powerful impact of our network investments, coupled with innovative products and services. Our direct digital revenues were up 57% in U.S. dollar terms and 62% in local currency and now represents 16.5% of total revenue.

On profitability, I am pleased that EBITDA margins continue to grow and are up both quarter-on-quarter and year-on-year to 47.8% in the second quarter. Our CapEx intensity for the quarter was 21.3%. On a last 12-month basis, it stands at 24.1% and excluding Ukraine, our last 12-month CapEx intensity stands at 18.3%, which is in line with our guidance.

Last 12-month equity free cash flow was $611 million, up 33.7% year-on-year. This is driven by both our operational and financial discipline and success of our asset-light strategy. Net debt, excluding leases, stood at $1.96 billion as of June as we completed the Uklon acquisition in April, paid our April and June maturity bonds, and raised $200 million via private bond placement. Finally, we ended the quarter with a cash balance of $1.28 billion, including $206 million at the headquarter.

Let me now deep dive into our digital revenue performance. We have started to break the components of our digital revenues to provide you with greater transparency into growth and potential of our digital businesses. Our digital direct revenues reached $180 million in the second quarter, growing 56.6% year-on-year in U.S. dollars and [ 62.4% ] in local currency. These now represent 16.5% of total revenue, up from 11.2% a year ago, 14.3% a quarter ago. I will call out 2 points here. Financial services are the largest component, accounting for 57% of our total digital revenue, growing strongly. We are pleased that the growth is broad-based with solid contributions growth across our entertainment, super apps, premium digital brands, ride-hailing and enterprise services. Effective April this year, we also welcomed Uklon to the VEON family. Uklon contributed $21.7 million in revenue and $9.3 million in EBITDA for the quarter. This marks a strategic milestone for us, reflecting our commitment to expanding our digital services footprint and unlocking new growth opportunities.

In this page, we are outlining our continued progress on Multiplay game, which accounts customers that use at least one digital service in addition to voice and data services we provide. Multiplay is a key feature of our digital operator growth strategy. 4G enables Multiplay, and hence, increasing 4G adoption is a key driver. For this quarter, 4G users increased 3.9% year-on-year. 4G penetration across our base is now 68%, up 4.6 percentage points. And it is this 4G base that is increasingly shifting to Multiplay, given our extensive and relevant suite of digital products and services. The Multiplay segment drives growth with stronger customer engagement, higher data consumption, more frequent usage of voice services, improved retention and ARPU expansion. Our Multiplay customers continue to generate 3.7x the ARPU of voice-only subscribers. We are encouraged that this ratio continues to increase even as Multiplay adoption expands as a proportion of our total overall subscriber base. In the second quarter, 54.4% of our total revenues are generated by Multiplay customers, and this number grew 26.8% year-on-year in local currency terms.

Let me provide you with an overview of our performance in local currency terms across our markets. We have delivered strong double-digit revenue growth in all our markets, except Bangladesh. While headline revenue growth for Beeline Kazakhstan is single digit, its revenues grew 14.5% like-for-like, accounting for TNS+ deconsolidation. In Bangladesh, we are encouraged that total revenues grew 5.1% quarter-on-quarter, and this indicates that a gradual recovery in consumer sentiment is underway. Our unique combination of network investments, fair value pricing, differentiated products and services, and strong digital growth are the drivers of this momentum for all our markets.

Our profitability trends across our markets are strong as well, reflecting on our focus on driving operational and cost efficiencies. Headline numbers for Beeline Kazakhstan and Banglalink are impacted by tax regulatory changes. And adjusting for these, organic trends continue to be strong.

Finally, please note that our consolidated financial results for Ukraine include the full consolidation of Ukraine Tower Company, UTC, whereas the stand-alone disclosures for Kyivstar exclude UTC. On a stand-alone basis, revenues in Ukraine grew 25.9%, EBITDA grew 23.6%. For the first half, revenues in Ukraine Kyivstar were up 35.8% and EBITDA is up 38.5%. We will take specific questions and discuss market-specific issues in the question-and-answer session later.

Let us now take a closer look at the continued momentum of our digital ecosystem. We are seeing strong broad-based growth across our platforms with total digital monthly active users, which I will refer to as just users here on, reaching 119.7 million for June, a 7% year-on-year increase. This is a strong result despite our entertainment users for June in Pakistan being impacted by typical seasonality in between cricket tournament schedules and underscores the overall healthy engagement levels. Our digital-only user base is 29.3 million and represents 24.5% of total digital user base. This highlights the growing appeal of our digital products, which are fast becoming go-to solutions for consumers across competitive markets. Transaction value over the last 12 months reached $43.8 billion in our financial services solutions and is up 53% in local currency terms.

Let me provide you with more detailed look to our digital portfolio. Our financial services segment has increased by 28% to reach 40.7 million users across all platforms. JazzCash's gross transaction value for the quarter rose by 43% year-on-year. On a last 12-month basis, this represents an impressive 12% of Pakistan's GDP. This was driven by a 37.3% increase in total transactions and a 15% uplift in per transaction value per user. Simply in Kazakhstan and Beepul in Uzbekistan continue to scale their roles as the financial layer of our digital ecosystem in the countries.

Our entertainment platforms continue to build on customer engagement, notwithstanding the seasonality that is impacting monthly active users. As an example, Tamasha recorded 17 million users for April '25 on the back of marquee cricket tournaments with the June '25 users, reflecting typical seasonality in between tournament schedules. These platforms are actively leveraging local content creation to capitalize on the rising demand for locally relevant content. This also sets up compelling opportunities for advertisers to engage with our young, digitally savvy audiences.

Our super apps have now scaled to 45 million users, reinforcing their role as primary digital entry points. Positioned as a one-stop digital hub, these platforms are seamlessly integrating essential services from health care to entertainment and driving deeper engagement across our ecosystem. Uklon's ride-hailing service now operates in Ukraine and Uzbekistan and reached 3.5 million users, reinforcing our presence in high-frequency everyday digital life. Meanwhile, our premium digital brands, spanning lifestyle, digital identity and productivity tools, saw users grow 2x year-on-year to 2.3 million as adoption deepened among digitally native customer segments. These platforms are designed to meet evolving customer needs with curated high-value experiences, underscoring their growing role in driving engagement, monetization and digital leadership.

I will now hand over to Burak, and he will take you through the financials in more detail. Burak?

Thank you, Kaan. In second quarter of '25, we delivered solid financial results with total reported revenue reaching $1.09 billion, representing a year-on-year growth of 5.9% in U.S. dollar terms and 11.2% in local currency. As previously noted by Kaan, the quarter included the deconsolidation of TNS+ in Kazakhstan and the Uklon acquisition. On a like-for-like basis that adjusts for this, our revenues grew 6.3% in U.S. dollar terms, underscoring the continued momentum across our operating markets. Direct digital revenues maintained their strong trajectory, growing 56.6% year-on-year in U.S. dollar terms to reach $180 million. Digital services now account for 16.5% of total revenues, further highlighting their growing relevance in VEON's business model and the successful execution of our digital operator strategy.

Turning to profitability. Group EBITDA for second quarter of '25 reached $520 million, reflecting a year-on-year increase of 13.2%, or 19.6% in local currency. EBITDA margin continues to expand quarter-on-quarter and year-on-year and came in at 47.8% for second quarter. This is being supported by operating leverage and disciplined cost control. We note that our digital services now, at 16.5% of group revenue, continue to deliver attractive absolute EBITDA growth. While digital margins are structurally lower, their much lower CapEx intensity ensures comparable cash conversion relative to telecom services. As our mix continues to shift in this direction, we are focused on sustaining EBITDA growth at scale, while enhancing group-wide capital efficiency and long-term cash flow generation.

Now, shifting our focus to key balance sheet figures. We finished June with $1.28 billion in cash, of which $206 million sit at headquarters. The quarter-on-quarter change primarily reflects the successful bond repayments at HQ and the completion of the Uklon acquisition in Ukraine. During the quarter, we upstreamed $59 million in net dividends from our operating companies. Gross debt stood at $4.63 billion at quarter-end, as new capitalized lease liabilities were partially offset by bond repayments in April and June. Net debt, excluding leases, was at $1.96 billion, with our net debt-to-EBITDA ratio, excluding leases, at 1.32x. Finally, as Kaan mentioned earlier, we have enhanced financial flexibility with the completion of USD 200 million bond issuance due in 2029. The bond issuance was settled on 15th of July.

Let me now hand the call back to Kaan.

Thank you, Burak. While the current global environment presents both macroeconomic and geopolitical volatility, we remain confident in the resilience of our business and the strength of our operations. We have delivered a strong first half. Our teams continue to execute with discipline, and the underlying demand across our markets remains robust. All this gives us confidence in our outlook and positions us well for continued value creation.

We are revising our outlook for the full year and now expect revenue growth of 13% to 15% and EBITDA growth of 14% to 16% for the year. Growth in underlying terms, which was the basis of our earlier guidance, is similar. As I highlighted earlier, underlying adjustments have become frequent and short-lived, given the pace of change across our business and are adding less and less value to our clear performance narrative. Hence, going forward, we will focus on headline numbers to provide you with a more consistent and transparent view of our trajectory.

We continue to expect capital intensity, excluding in Ukraine, in the 17% to 19% range, and these targets are based on a blended weighted average inflation rate of 8.2%. Inflation has inched up in some of our markets, and it is a trend we are watching closely.

In closing, we are pleased with the momentum we have delivered in the first half, and I'm excited about our prospects. We look forward to continuing to deliver on our strategy and creating sustainable value for our stakeholders. Thank you for your continued support and trust in VEON.

We can now open the line for questions and answers.

[Operator Instructions] Our first question comes from Nicholas Paton with Edison Group.

I've got a couple of questions and they're a little bit technical. The first one, I think you've mentioned in the press release, Engro, the sale of which has now closed. And I think you mentioned that the proceeds of $188 million have already been received by Jazz and there's another $375 million to follow. Can you just take me through technically, how that's going to be fed up to the holding company? That's the first question.

And maybe I'll slip in another one quickly while I'm on. The second one is on the technical effects of the SPAC for the third quarter financials, the listing of Kyivstar. What should we expect in the third quarter numbers around that?

Nicholas, thank you very much for your questions. I will ask Burak to answer both of them: first, the Engro question, and the SPAC impacts.

Technically, we will -- we are planning to upstream those cash, which we will receive in 20 months in equal installments, with dividends that will enable us to release our reserves and equity. So that's an answer to your question. Technically, we will get those through dividends upstream to HQ. Having said that, if we have the uses for those cash in the country, we will make sure that we do the right allocation for those uses in the country in terms of either debt repayments or potential M&A opportunities.

And on the Kyivstar, can you repeat the question again?

The impact of the SPAC to the financials.

The impact of SPAC is going to be calculated based on the closing price of the stock on the first day of the trading, which is basically the difference between the valuation of the assets in the SPAC, which is the cash balance, which is around $200 million, and the shares that we are going to use to purchase the SPAC. So the closing price will influence the impact of the transaction there.

And Nicholas, we expect in Q3, of course, if the voting in the general assembly of Cohen Circle results in a positive outcome to close this deal, plus the sale of our Kyrgyzstan operations. And as I mentioned, we expect actually these 2 transactions to result somewhere in between $150 million to $200 million of P&L impact, noncash, and no impact and positive actually impact overall to the equity.

Our next question comes from Adrian Cundy with Emerging & Frontier Capital LLP. Adrian.

Adrian, we cannot hear you still.

I was just -- can you hear me now?

Yes, we can now.

Okay. Sorry if there's any background noise. I'm in a public location. One of the things I was wondering about was your comments on 4G adoption as an enabler of both data revenue in the telco business, but also as a driver of digital revenues. And in some of your markets, you're seeing -- Pakistan, you're seeing a very, very good rate of 4G take-up. In other markets, more like Ukraine, as you've alluded to, it's remained fairly stable at about mid-60s. So maybe could you elaborate on what your strategies are to drive that sort of 4G adoption up?

And secondly, just at a broad level, at the group level, sort of 4G Multiplay and Multiplay users as a percentage of overall data revenue, how -- what is that?

Thanks, Adrian, for the questions. First of all, as you know, our markets, frontier markets is really still not the right platform for 5G services. So we have successfully adopted a strategy for 4G for all, not 5G for few. And over the last couple of years, we have built our 4G base up to 68% of our total customer base. Having said that, in markets, especially like Pakistan and Bangladesh, there are still 50 million customers who are only utilizing feature phone services. And this actually, on one side, of course, a big opportunity because ultimately, these customers will also migrate into smartphones and consumption of 4G services. And we are well positioned to capture this additional organic driver growth for ourselves.

With regard to our 4G and 4G Multiplay customer revenues, as I mentioned, Multiplay customers, who are around 25% of our base, generates 54% of our revenues. If I would add 4G to that, I think we will reach close to 70% of our revenues as our customers for 4G and 4G Multiplay. And our strategic direction to drive this is, first of all, to increase our coverage and quality of 4G services, but also enter into smartphone business, specifically designed for our digital services. And we have already started this in Kazakhstan, where we are providing our customers smartphones preloaded with our applications like IZI, Simply and Janymda, which is our super app for the market. We see a very high adoption rate of the smartphone-enabled services and close to every single day, selling about 1,500 smartphones to our customers in Kazakhstan. Similar approaches will be also applicable in other markets.

That was basically the question I was going to lead into is, in terms of device adoption, what strategies were you going to deploy to improve the 4G take-up rate. But going back to your press release, you mentioned, in Kazakhstan, I think you were deploying 4.9G or MIMO-based 4G networks. Where else are you doing that? And are you finding that, that movement into 4G MIMO and the improved bandwidth gets you -- without going all the way to 5G, does that give you -- is that also helping you in the customer acquisition by increasing capacity or increasing effectively user experience, improving user experience on throughput, data throughput? Where else are you seeing -- are you planning? And what should we be thinking about CapEx?

So Adrian, first of all, we will continue, of course, deploying the 3 important technologies that enhances the quality of the service we provide in our markets. Massive MIMO is one of them. Virtualization of the core is the second one, which drives the cost significantly down. And the third one is aggregation of carriers. And all these 3 technologies, when combined and enhanced with 2,300 megahertz, creates a unique service quality, which actually today successfully beats the 5G operators in Kazakhstan. I'm very happy with the fact that if I look to the Net Promoter Scores in the country, the operator under -- operating under the name IZI, which is actually our digital-first application for the youth, has the highest NPS scores of 26, where all the operators are in single-digit numbers. So what I see is, 4.9G is today very well positioned to compete even against 5G capabilities. The customer, at the end of the day, does not care if they consume the services, whether it be music, games or video, whether it is on Wi-Fi, 4G, 5G, or in the future, satellite platforms, where we are also preparing ourselves, getting ready for.

Okay. If I could squeeze one final question for Burak. Just coming back to the SPAC effects, am I right to think that the direct costs for Kyivstar will be booked at that level and the balance of the cost on the share price translation will be treated at the parent level, at VEON level? Is that correct?

Yes, that's correct.

So can you sort of give me a rough breakdown? I mean, your direct SPAC costs are expected to be X, and then the -- subject to the closure, what the balance will be at the VEON level?

At the VEON level, as I stated, it will depend on the closing price on the day, but it will be somewhere between $50 million to $100 million, based on the current value of the shares trading. And in terms of transaction costs, that's going to be mostly booked into equity actually. And the amount of those transaction costs will be somewhere between $30 million to $50 million.

Our next question comes from Matthew Harrigan at The Benchmark Company.

You can hear me, of course, right?

Yes, we can.

Great. Always an element of paranoia there, although I should be accustomed to it by now. I actually had a 4.9 MIMO question as well, but I think even more interesting is the valuation because you have a telecom business that I think probably has a sustainable mid-single-digit growth rate that isn't adequately valued relative to peers. And then, you have the direct digital business, close to USD 725 million run rate now. Obviously, you're going to be at $1 billion within a few quarters, the way it's growing 56%. And that's -- it's really a gaggle of interesting businesses across different markets. I'm wondering -- I don't know how familiar you are with tracking stocks. I suspect you are. They're not used very often. But this does seem like one instance where you could do some creative financial engineering and try to do a tracker for those digital businesses that probably you can get a valuation almost tantamount to your market cap in some quarters. How do you -- and clearly, you've got Ukraine just in the process right now. But what do you have in the hopper? And what do you kind of think about unlocking the valuation? Because it surely should be realized over a period of time, but it is complicated -- very complicated company. And I clearly don't think you're getting a fair valuation for the telecom business, let alone what you're adding on, on the digital side.

Matthew, thank you very much for your question. We are a unique company. While we are unified when it comes to strategic direction, we have a decentralized way of execution. And if you look to our product portfolio, you will see local authentic brands serving our customers in different countries. And you are absolutely right. There is an opportunity here to crystallize the value. And when the right time comes, we will think about this, how to make it more transparent and more tangible. I think, at right time, we'll start phase by phase. First, I would like to see our direct digital revenues to surpass 20% of our total revenues to provide you more clarity about the marginality. And second, as we move on, certain type of businesses across the board, for example, financial services. We have JazzCash in Pakistan, which is actually already generating a $1 billion run rate for us. And we do have Simply business, who is in Kazakhstan, which is ripe for growth, and Beepul in Uzbekistan. I think, at the right time, you will see us bringing the financial services, bringing the entertainment businesses, bringing the health care, ride-hailing businesses under umbrellas where we will be much easier to communicate in terms of revenue values. But I think we are a couple of quarters ahead of that position.

And if you don't mind, it's interesting when you look at generative AI, and McKinsey is putting out numbers that suggest mid-single-digit gains to global GDP and all that. And you would have to infer from that with the growth rates we have right now that GDP will be negative if it wasn't for AI, which is rather silly. But you're in a position where you can really see what the ROIs are and what you can deliver. If you look at AI specifically to the frontier markets that you're in right now. And clearly, Uzbekistan, taking one example, you've got a very interesting business there more on the tech side. But how do you think AI affects markets with lower labor costs and lower penetrations of digital services and probably a lower white collar component in the workforce? In other words, looking at the effect of AI on the economy in Pakistan or Ukraine or Uzbekistan compared to the United States or Britain or The Netherlands, which you know well. And I know it's kind of a Sunday morning's auction type question, but I'd be interested to get your -- you're probably one of the few people who sees things.

Matthew, I think in emerging markets and frontier markets, sometimes advanced technologies are adopted in very creative ways. And I do expect that overall, local economies will be impacted significantly with the adoption of what I call not artificial but augmented intelligence. Let me explain it this way, especially from our industry perspective. A traditional telecom company's value proposition is selling number of minutes, number of gigabytes, number of SMSs. You would be surprised, but that business model still exists in many places. The digital operator sells services, rather than selling gigabytes, provides entertainment, games, video, music, health care services, education services. Now, what I call the AI generation telco will provide augmented skill sets to create capabilities for a doctor to be a better doctor, a teacher to be a better teacher. And imagine, as we provide these services, our value proposition for our customers will no more be number of gigabytes or even digital service. It will be a better version of themselves. That's what we are focusing on. That's why we are developing local language LLM models. We have already launched Kazakh LLM model. We are working on all the other countries. Probably the second one will be Ukrainian LLM. And we have already launched agentic AI capabilities like online tutor, which would help students with their homeworks, which would help them assess their level, develop an education program and do the certifications at the end. And these type of capabilities are getting very high levels of demand and adoption in the countries that we operate in. That's where I see our future value propositions will be centered around. And through our super apps, we're going to integrate all these capabilities. So the agentic AI will be the main value proposition we provide to our customers.

Our next question comes from Don Espey at Shah Capital.

Don, you might be on mute. Still not hearing, Don.

Don, can you hear us?

Can you hear us?

Yes, Don, now we hear you.

Great. We've got a few questions actually. You touched on this topic with Matthew a few minutes ago, but hoping we can drill down a little more with the fintech assets specifically. The market has given little value to your fintech assets, including JazzCash. So we're curious on your strategy to partially monetize VEON's 40 million-plus digital wallets.

Don, first of all, thank you for your trust and confidence in VEON. I think there is an echo somewhere. If you can maybe turn off your loud speaker. I think you did. Thank you very much for that. So thanks a lot for your trust and confidence. And you're absolutely right. Especially if I take the Pakistan's JazzCash business -- actually, I have to admit that it's not only JazzCash, it's Mobilink Microfinance Bank and JazzCash, where we have close to 21 million of that 40 million fintech customers that you mentioned. This is a business which actually lends 140,000 nano loans every single day, transacts 12% of Pakistan GDP and concludes 60% of all mobile payments in the country. And of course, we see the opportunity in terms of making this business much more tangible and crystallizing well.

On the other side, the growth momentum is so high that every time I prepare an information memo, I have to repeat it before it gets finalized. So I am a little bit patient in terms of developing the value and the right level of value representation before hurrying in moving into a crystallization. Clearly, we have lots of interested parties in our financial services business in Pakistan and also in other markets. But I think I would like to take our time a little bit to make sure that the business growth perfectly plays into the next couple of quarters. And of course, later on, you will see us talking much more about this and also presenting it into the relevant investor circles.

Don, you had other questions?

Don, you are on mute again, I think.

When do you see your monthly ARPU close to USD 3? By the way, one [ peer ] in Africa is there even though per capita income of African countries is lower than VEON's markets.

It's a very good question, Don. So, let me take that. I think you need to mute. Thank you. So I'll break the question into, I think, 3 legs, right? I think Kaan went into a lot of length on Multiplay being the key driver to our ARPU and revenue growth strategy. And if you look at our disclosures on Page 4, we are disclosing that Multiplay ARPU is actually at $3.4 now, and that's related to the $1.9 mobile ARPU. So I think our strategy is working. And as Kaan pointed out in the slides, Multiplay ARPU is consistently multiples of what the voice-only or the regular ARPU is. This Multiplay is only 32% of the subscriber base today. And as Kaan pointed out again, one very important narrative in our story is how we continue to grow this proportion. And as that proportion grows, we do expect the overall ARPU to also start to climb. So that's, I guess, point number one.

Point number two, smartphones. I think in most of our markets, it's probably 1 in 2 subscribers, [ if at that ], that own smartphones. We spoke about the smartphone strategy that we have. We spoke about the handset strategy that we have. And as that gets going, I think the entire virtuous cycle of 4G adoption, Multiplay, and therefore, ARPU accretion is again something that will go into play into driving that number.

Thirdly, we're very focused on fair value pricing and obviously pushing our digital services. We look at selling services, not as selling tariffs, and that's also something that we are executing to very strongly in our markets. So I guess, long answer to your short question, these are the trends I'd expect to continue to support an ARPU move, which starts to kind of move closer and closer to what we are seeing at the Multiplay ARPU today.

That helps. And is VEON contemplating Kyivstar, Jazz, Beeline smartphones for better penetration and monetization of its digital apps?

Don, thanks for the question. We have actually started actively doing this in Kazakhstan, and the early results are very promising. So you will be also seeing other markets that we will bring tailor-made phones for our customers so that they can consume our digital services more effectively.

And last question. Yes, it's unfortunate VEON still has a going concern language. How quickly do you see that going away?

Don, thanks a lot. Let me ask Burak to explain where we see this.

Sure. I mean, the main reasons for the going concern language on our 20-F is now, I believe, off the table. One of them was our access to capital markets, which with the syndicated loan and also with the private financing that we closed in July is off the table right now. And the second one was the fact that we were able to pay our $500 million of bonds in April and June as we announced. So, as both of those are off the table right now, I'm very optimistic that until the end of this year, hopefully sooner than later in Q3, we will be able to make a disclosure in terms of getting that off our books.

Our next question comes from Vincent Fernando with Zero One Investment Research.

Can you hear me?

Yes, we can.

Okay. Great. I was looking at the Uklon numbers. You generated $9.3 million of EBITDA in the quarter, kind of puts you on track maybe for moderate growth [ at $40 million ] for 2025. You're doing 3.5 million MAUs in a country of 38 million people. How do you see growth evolving for Uklon this year? Because it looks like it's becoming a pretty strong EBITDA generator. And then, kind of in addition to that, how do you see extensibility for Uklon into -- I mean, I know you have it in Uzbekistan. Have you looked at ride-hailing in Kazakhstan?

Sure. Thanks a lot, Vincent. So Uklon is really a very unique company, which is growing fast and it is EBITDA-accretive and cash flow-generative and positive and basically almost have 70% market share in ride-hailing and delivery in Ukraine. Currently, they operate in 28 markets. When I say markets, understand that as cities. 27 of that 28 are in Ukraine, and one of them is in Tashkent in Uzbekistan. Interestingly, Tashkent is the largest market in terms of market size. So I believe the potential for Uklon, not only for ride-hailing, but also for delivery and linkage to the marketplaces that we will operate in our super apps is huge. And you will see us expanding the capabilities of Uklon and Uklon team to other markets over the next 4 quarters. And what we see is every market that we will be entering could be completely from organic, or it can also be accompanied with some also in-market acquisitions and consolidations. But this is a business where it is extremely accretive to the customer experience, and also our super app strategies, as we embed financial services and marketplaces to our super apps, as you can imagine, a product being sold on an e-commerce site delivered at home and may be financed through our financial services offerings. This is the real full 360 value proposition that we are after.

Are you -- I mean, now that it's part of the group, will the investment or the budget for expansion and marketing be increased? And have we -- and the growth that we've seen for Uklon for 2Q, has that started yet? That's what I'm trying to understand. Like is that basically growth based on their previous budgeting and marketing? And now they're part of the group. Is that -- will you change? [indiscernible] going to accelerate that?

This quarter's results are totally their organic performance, and they are performing very well on the markets that they were at. Now, with the new era of combining our capabilities in the countries -- and as I have always said, our 2 unique advantages is our effective customer acquisition and customer acquisition cost, therefore; second, effective distribution mechanism through our super apps. We have not yet seen the results of combining these capabilities with the technological advantages of Uklon. Therefore, I'm very excited to see the penetration levels actually evolve over the next quarters. And I would like to make sure that our advantage in customer acquisition and our advantage in additional service to an already existing customer will deliver huge value for us.

Our next question comes from Christopher Hoare with New Street Research.

I had a couple of questions. First one, just operational. My understanding is that the reason for the negative EBITDA in Kazakhstan is an increased tax that was introduced in Q3 last year. So is that correct? And does that drop off? And therefore, is there anything happening to underlying margins? Or should we expect from Q3 that Kazakhstan moves back to kind of EBITDA growth roughly in line with revenue growth? Yes, maybe if you answer that, and then, I'll come back with a follow-up.

Thank you, Chris. First of all, it was not about increased tax. It was actually a tax rebate due to our rural deployment of 4G technology that government extended to us. The law on that expired by the end of last year. And actually, after our Q2 closure, the law passed again, retroactively affecting Q1 and Q2. So in Q3, you will see those numbers coming back in. And maybe, Burak, you can remind me how much it will be impacting Q3 numbers.

It's about $8 million a quarter. So it will be in total about $16 million that we will have in Q3.

So the issue in Kazakhstan will be compensating in Q3. The President passed the law quite late, so it will only be impacted in Q3.

It will also impact revenue, not only EBIT.

Okay. But that means, we'll be back to positive EBITDA in Q3, basically in Kazakhstan?

We don't have negative EBITDA. I mean, we have declined, but we don't have negative...

No, no, no. Yes, but positive EBITDA growth, basically, yes.

Yes.

Yes.

Yes. So given that, I mean, should -- I mean, do you think the full year EBITDA guidance is a bit conservative on that basis, given what you've seen in the first half? I mean, the implied second half is a fair bit weaker, but you've got that benefit flowing through. Is there anything else happening that should we be aware of in one of the other operations?

I think we are, as usual, having a prudent stance on our projections. And of course, as the operations show itself, we will come back to you in next quarter to give you a highlight on that. But I think as it stands now, it's the right conservative prudent approach that we have taken.

Okay. And then, maybe if I could have another one. I think you're planning to announce a new shareholder remuneration strategy. And I just wondered, given that you've completed the third phase of the buyback, if there's anything you can say on that, either around timing or sort of how you're feeling about shareholder remuneration, both from a buyback or a dividend perspective, if there's anything you say around what we should be expecting there?

Chris, as I have mentioned in the last quarter, please expect the Q3 to be the time that we come back to the market about this. But what I would like to highlight is, we are a growth company. As you can see, we have huge opportunities to accelerate our growth, capture new markets. And we will, of course, balance this when we come back to the market and make our statements.

Our next question comes from Theodore O'Neill with Litchfield Hills Research.

First, congratulations on the good results in the quarter. Yes, my question is, given the good growth you've had here on the digital side, how should investors think about this growth split between organic and inorganic?

On the digital side, I'm assuming your question, right?

Yes.

Well, it's very simple. The $120 million is a 57% year-on-year growth. And the only inorganic part there is the $21 million coming from Uklon, and that means still a healthy growth is there organically as well.

Okay. And the follow-up is, I was wondering if there was sort of a pipeline of potential acquisitions in this area that you're looking at.

I mean, I do not want to speculate on that, but it is very clear that our digital services strategy and the way we see actually launching new services will result in organic and also inorganic efforts in all the markets. As I mentioned to you, we do have a unified strategy, but we execute in a decentralized way in the markets that we are in. That fits into the expectations of the customers the best. So -- but I don't want to speculate on what those could be at this point.

We have no further questions at this time. I will now hand back to Anand Ramachandran for closing remarks.

Thank you so much. Actually, we do have some questions left. But look, just respecting people's time and given that the hour is up, we would like to close the call here. We will revert back to you guys on the questions. And as always, any additional questions, do feel free to call us, email us. Very happy to take all the questions in a lot of detail offline. So to conclude, thank you again for your support. It's been a good quarter. We appreciate your support and the time you spent with us. Thank you for your continued support and see you again next quarter. Thank you.

Thank you very much. Bye-bye.