Key Highlights

  • Kyivstar's Starlink satellite service in Ukraine has more than 6 million users.
  • Second-quarter group revenue rose 17.0% to $1.271 billion.
  • Full-year revenue growth guidance was raised to 15% to 18% in dollar terms.
  • Net debt excluding leases was $1.819 billion, or 1.10 times trailing EBITDA.

Mobile coverage gaps are a long-standing frustration for telecom customers, and satellites are now being used to fill them. VEON Ltd. (NASDAQ:VEON), which operates mobile and digital businesses in Pakistan, Ukraine, Kazakhstan, Bangladesh and Uzbekistan, has been rolling out Starlink's direct-to-cell technology, letting ordinary smartphones connect to satellites when no tower signal is available. In its second-quarter 2026 report, VEON said Kyivstar's Starlink service in Ukraine already has more than 6 million users, with other markets to follow.

Strong Growth and Raised Guidance

VEON published its second-quarter results on July 31, 2026. Group revenue rose 17.0% to $1.271 billion, EBITDA reached $552 million at a 43.4% margin, and digital services made up 26.9% of revenue. Management raised its full-year guidance to 15% to 18% revenue growth in dollar terms, from 11% to 14%. Kyivstar's offering now supports apps such as Viber, WhatsApp and Google Maps. Beeline Kazakhstan plans direct-to-cell messaging this year, with data to follow subject to regulatory approval, while Banglalink is targeting a launch of satellite messaging on standard 4G smartphones in the second half of 2026.

Deepening Customer Relationships

VEON reported 227.7 million digital customers and mobile average revenue per user of $1.80, up 6.3%, while multiplay customers who use several services generate about four times the ARPU of voice-only users. Ukraine is the most advanced case: Kyivstar posted revenue growth of 27.2% in local currency and an EBITDA margin of 55.5%. Kazakhstan and Bangladesh are earlier in the process, and Kazakhstan has seen EBITDA fall 10.9% in dollar terms, which VEON linked to a VAT increase from 12% to 16% that reduced net revenue.

Coverage as a Retention Tool

VEON's satellite initiatives show how a telecom group can add value beyond conventional mobile data, although the commercial payoff remains unproven. Net debt excluding leases was $1.819 billion, or 1.10 times trailing EBITDA, and the company has been repurchasing shares, with third-quarter results scheduled for November 6 expected to provide fresh adoption and ARPU data.