Veon Raises Financial Outlook, Highlights Continued Digital Investments in Ukraine

Veon has raised its earnings forecast for the year. Citing stronger than expected business performance, the company reiterated its commitment to providing services and infrastructure to Ukraine, including the digital transformation that continues to take shape despite the war.

Veon said improving operating performance across its operations due to increased demand for mobile connectivity, digital services and online alternatives has resulted in raised earnings guidance. But at the same time, the company reiterated it is committed to supporting Ukraine through continued investment in network resilience and the digital transformation for consumers, businesses and public institutions.

Ukraine has remained one of the operator’s most significant markets and despite difficult operating circumstances the company has been committed to maintaining and modernizing its communications infrastructure while customers expect and increasingly demand its services.

Digital transformation has gained momentum on and off the balance sheet. By enhancing a range of digital services – which now include digital payments, health apps, learning resources, entertainment options,cloud solutions and business productivity applications, in addition to voice and data –Veon aims to diversify revenue and strengthen customer relations.

The raised guidance reflects stronger consumer demand. With increased dependence on their smartphones, consumers have continued to use mobile internet, data and digital financial services, thus boosting Veon’s usage figures and revenues in even the most uncertain economic periods.

The operator has continued to invest aggressively in network improvements. Veon has been allocating its resources to expanding network cover, adding capacity, updating infrastructure and strengthening network reliability at the same time as use of the internet is on a constant upward trajectory and digital applications have become essential. The company notes that telecommunications operators have always displayed remarkable resilience during times of upheaval,as their services have been identified as vital infrastructures. The operation of communications networks is considered crucial for providing emergency support, helping businesses function and facilitating communication during crisis situations.

As countries look to digital transformation accelerated by the war in Ukraine, telecom companies are beginning to emerge as technology players. By leveraging the traditional telecommunications network Veon seeks to evolve into a fully integrated digital service provider by developing a range of services that go beyond simple voice and data. The effort is focused on generating greater value on the operator’s platform by developing innovative digital solutions and services while enhancing customer loyalty through a deeper and more diverse consumer proposition.

By raising guidance and committing more resources to its Ukrainian operations, Veon demonstrated its belief in the market and its long-term value. In addition to maintaining and enhancing vital communication infrastructure which is crucial for supporting businesses and enabling social and economic interactions, the operator’s continued focus on investing in Ukraine’s digital infrastructure also reflects its ambition to embrace and shape its future. The company's success in the increasingly digital and globally connected marketplace is attributed to its operational efficiency, disciplined capital investments and focus on expanding higher-value digital services that complement its existing product and service portfolio.