Veon lifts 2026 revenue outlook as softer dollar boosts results

(Corrects year in headline)

By Leo Marchandon and Gianluca Lo Nostro

May 13 (Reuters) – Dubai-based telecoms group Veon on Wednesday raised its full-year revenue growth forecast after a weaker U.S. dollar helped lift first-quarter revenue 17%.

First-quarter revenue rose to $1.1 billion, while earnings before interest, taxes, depreciation and amortisation increased 17.7% to $517 million. Veon raised its 2026 revenue growth outlook to 11%-14% in U.S. dollar terms from 9%-12%.

“I truly believe that the macroeconomic decisions of the Trump administration in the U.S. would help us in terms of the dollar getting looser, because clearly they have an appetite for exports,” Chief Executive Kaan Terzioglu told Reuters.

Veon said the softer dollar increased the value of revenue earned in local currencies across markets including Ukraine, Pakistan and Bangladesh, a tailwind that contrasts with many global companies that have said currency swings are hurting results.

DIGITAL GROWTH

The company also pointed to growth in its digital business.

Digital revenue jumped 57.7% to $303 million, accounting for more than a quarter of total revenue, while Veon raised its annual capital spending target to 15%-17% of revenue, excluding Ukraine, from 14%-16% after spectrum plans tied to a March 2026 auction in Pakistan.

“When you are in frontier markets, the world looks a little bit different because opportunities are huge, but of course there is corresponding potential volatility,” Terzioglu said.

Terzioglu also said Veon was keeping open the option of floating more shares in Ukrainian mobile operator Kyivstar but had no intention of giving up control, leaving room for further fundraising as the group pursues growth in volatile markets.

(Reporting by Leo Marchandon and Gianluca Lo Nostro in Gdansk, editing by Milla Nissi-Prussak)