VEON currently holds a Zacks Rank #2 (Buy), driven by upward revisions to its 2026 earnings estimates. Over the past 30 days, four sell-side analysts have raised full-year EPS projections by an average of 6%, reflecting improved visibility on operating free cash flow in its core markets. Institutional ownership has ticked up to 45% from 42% six months ago, suggesting growing confidence among large investors. With VEON’s consensus EBITDA forecast set to rise 4.5% year-over-year, the company’s dividend yield of approximately 6.2% remains one of the highest in the international telecom sector, underpinning its appeal to income-oriented portfolios.

Since its November 24, 2025 launch, Kyivstar—VEON’s Ukrainian subsidiary—has enrolled over 3.0 million users in its Starlink Direct to Cell service, representing more than 10% of its 30 million mobile subscribers. The network has delivered in excess of 1.2 million SMS messages via satellite, particularly benefiting customers in conflict-affected southern and eastern regions such as Kherson and Donetsk. Usage is highest in Kyiv, Lviv, Vinnytsia, Khmelnytskyi and Dnipro. The service, free to all 4G smartphone users on Kyivstar’s 15.5 million-strong base, operates in open areas with clear sky views, reinforcing VEON’s commitment to resilient communications.

Building on Kyivstar’s success, VEON’s Beeline Kazakhstan completed the region’s first Starlink Direct to Cell WhatsApp voice call in December 2025. The operator plans to roll out SMS connectivity services in 2026, pending regulatory approval. This pilot underscores VEON’s strategy to leverage satellite partnerships across its five-country footprint, where it serves nearly 150 million connectivity users. Management targets a 20% increase in non-voice revenue by the end of 2026, driven by digital and value-added services powered by satellite technology.

VEON has earmarked USD 1.0 billion of capex for Ukraine infrastructure and digital services between 2023 and 2027, shared equally with Kyivstar. In its most recent quarterly report, the company allocated 40% of total group capital expenditure to network modernization and satellite integration across markets. VEON’s balance sheet remains conservatively leveraged, with net debt/EBITDA at 2.3x as of Q4 2025, below its 2.5x covenant threshold. The firm anticipates generating €600 million of operating free cash flow in 2026, supporting both shareholder distributions and strategic acquisitions in adjacent digital-services segments.