VEON Ltd. (NASDAQ: VEON) is a global digital operator known for its telecommunications services and digital solutions. The company is set to release its quarterly earnings on March 20, 2025, before the market opens. Analysts expect an earnings per share (EPS) of $0.77 and a revenue projection of approximately $997 million. VEON's financial performance is closely watched by investors and analysts alike.
In 2024, VEON reported strong financial results, achieving a total revenue growth of 8.3% year-over-year, reaching $4 billion. This growth was even more impressive in local currency terms, with a 14.6% increase. The company's EBITDA rose by 4.9% to $1.69 billion, reflecting a 12% rise in local currency terms. These figures highlight VEON's ability to generate substantial revenue and maintain profitability.
A significant highlight for VEON was its direct digital revenue, which surged by 63% year-over-year to $460 million, accounting for 11.5% of the total revenues for the year. This growth underscores the company's successful expansion in digital services, a key driver of its financial performance. VEON's financial position remains robust, with total cash and cash equivalents amounting to $1.69 billion, including $481 million at the headquarters.
VEON's financial metrics indicate a strong market position. The company has a price-to-earnings (P/E) ratio of approximately 8.00, suggesting a favorable market valuation of its earnings. Its price-to-sales ratio is a low 0.033, indicating that the stock is relatively undervalued in terms of sales. The enterprise value to sales ratio is 0.87, reflecting the company's total valuation compared to its revenue.
Despite a high debt-to-equity ratio of 4.05, indicating significant reliance on debt financing, VEON has managed to reduce its gross debt by $311 million, bringing it down to $4.4 billion. The company's current ratio is 0.81, suggesting potential challenges in covering short-term liabilities with current assets. However, with an earnings yield of 12.49%, VEON offers a substantial return on investment relative to its share price.
