VEON cancels 1.5% of its shares under roughly $200 million buyback programme
Key Facts
VEON announced on 20 October 2026 the cancellation of about 1.5% of its total issued shares, implementing the buyback programme announced in September. The company said in a statement that the cancellation covered 26,951,230 ordinary shares, equivalent, according to the statement, to 1,078,049 American depositary shares. The reduction in issued shares forms part of a programme targeting the purchase and cancellation of 3.9% of outstanding shares, according to the company's announcement of the buyback's scope. When it launched the programme on 23 September 2026, VEON estimated its value at about $200 million for purchases of ordinary shares or their equivalent in depositary shares. It set the programme's target size at 72.5 million ordinary shares or their equivalent, split between market purchases and direct purchases from a shareholder.
According to programme details announced in September, implementation combines open-market repurchases of securities with direct share purchases from shareholder LetterOne. The shareholder agreed to sell up to 32,957,830 shares to VEON, participating in proportion to its stake in the company. The prices and volumes of shares VEON purchases from the shareholder are based on the prices and volumes of open-market repurchases. Each VEON American depositary share represents 25 ordinary shares, according to the ratio the company provided when announcing the programme's launch. VEON said the final value of the repurchases would vary depending on the prices at which shares or depositary shares are purchased during execution.
The buyback comes against a backdrop of rising equity free cash flow after leases and licences, which reached $320 million in the first half of 2026. That cash flow grew 47.5% year on year, according to VEON's second-quarter financial results. On the operating front, the company recorded total revenue of $1,271 million in the second quarter, according to the same earnings statement. This represents an increase of 17.0% from the same quarter a year earlier, alongside growth in revenue from digital services the company offers its customers. The chief executive linked cash generation to customers adopting more of these services, saying this increases revenue from them and extends the time they stay with the company.
VEON's digital revenue reached $342 million in the second quarter of 2026, according to figures the company published in its earnings statement for the period. That revenue rose 53.6% year on year, compared with the growth rate recorded in the group's total revenue during the same quarter. The chief executive said customers who adopt more digital services "stay with us longer", linking this behaviour to increased customer revenue and support for cash generation. In an update to its business outlook, the company raised its expected annual revenue growth range for 2026 to 15%–18%, according to the earnings statement. Previous guidance had pointed to growth of between 11% and 14%, before the revision VEON announced alongside its second-quarter performance.
Alongside the buyback programme, VEON announced on 19 October 2026 an agreement to acquire telecommunications operator Perfectum in Uzbekistan, according to a separate company statement. Total acquisition consideration is about $207 million, including the operator's outstanding financial debt that VEON will assume under the announced agreement. The company estimated this debt at about $93 million and included it in the announced total deal value alongside the cash consideration for the acquisition. VEON said the cash consideration would be funded from its existing cash resources, according to the financing arrangements outlined in its announcement of the agreement. The company is thus proceeding with the purchase of a telecommunications operator in Uzbekistan using available cash, while carrying out share purchases and cancellations under its announced programme.
VEON plans to announce its third-quarter 2026 results on 6 November 2026, according to the date the company set in its announcement of the forthcoming results. The scheduled financial disclosure follows the share cancellation announcement and the acquisition agreement in Uzbekistan, as part of the sequence of company announcements during October and November. It will be followed by a capital markets day that VEON will hold on 16 November 2026, according to a separate announcement about the meeting dedicated to presenting its business. The company named Nasdaq MarketSite in New York City as the venue for the event scheduled for November. It said the capital markets day programme would include presentations on its strategy, performance and outlook, following the publication of its third-quarter financial results.