International operator VEON has presented the financial results of its Uzbek subsidiary, Beeline, for the second quarter and first half of 2026. The company demonstrated growth in revenues and digital receipts amid a decrease in capital expenditures and the strengthening of the national currency against the US dollar.
Second Quarter Results
Beeline's revenue in Uzbekistan in the second quarter of 2026 increased by 5.3% compared to the same period last year, reaching 1,009,189 million soums (US$84 million). Income from telecommunication and infrastructure services grew by 2.9%, amounting to 854,655 million soums (US$71 million) compared to 830,463 million soums (US$65 million) the previous year.
The dynamic was driven by an increase in average revenue per user (ARPU) following tariff revisions, the introduction of family packages, and increased income from network infrastructure and roaming. However, a decline in the number of active subscribers acted as a limiting factor.
Digital revenues increased by 21.0%, reaching 154,534 million soums (US$13 million) compared to 127,736 million soums (US$10 million) the previous year. The share of digital revenues in the company's total revenue rose from 13.3% to 15.3%. The main driver of growth was mobile financial services, including an increase in peer-to-peer transfers, as well as the development of the BuildX platform and other Beeline digital products.
EBITDA grew by 2.3% to 371,692 million soums (US$31 million) compared to 363,486 million soums (US$28 million) the previous year, although the EBITDA margin decreased by 1.1 percentage points to 36.8%. Operating profit (EBIT) increased by 7.8% to 195,554 million soums (US$16 million), with the EBIT margin standing at 19.4%.
Capital expenditures in the second quarter decreased by 47.2% year-on-year, totaling 193,324 million soums (US$16 million) versus 366,424 million soums (US$29 million) the previous year. Capital expenditure intensity over the last twelve months was 20.7% compared to 34.2% the previous year.
First Half Results
For the first six months of 2026, Beeline's revenue in Uzbekistan grew by 12.9% in USD terms and by 6.0% in local currency, reaching 2,009,879 million soums (US$166 million) compared to 1,896,950 million soums (US$147 million) the previous year. The company attributed the difference in growth rates in USD and local currency to the strengthening of the sum relative to the US dollar during the reporting period.
Income from telecommunication and infrastructure services for the half-year increased by 9.9% in USD, amounting to 1,691,604 million soums (US$140 million) compared to 1,639,495 million soums (US$127 million) the previous year. The company attributes the local currency growth primarily to tariff revisions, increased income from digital financial services, and increased device sales.
Income from digital financial services showed the fastest growth, increasing by 95.0% in USD to 128,072 million soums (US$10 million) compared to 69,903 million soums (US$5 million) in the first half of 2025. Income from other digital services grew by 8.0% to 190,203 million soums (US$16 million).
Operating expenses for the half-year rose by 15.4%, reaching 1,277,241 million soums (US$105 million). Adjusted EBITDA increased by 8.7% in USD and by 2.0% in local currency, totaling 733,448 million soums (US$61 million) compared to 718,921 million soums (US$56 million) the previous year. The decrease in EBITDA margin by 1.4 percentage points to 36.5% was due to revenue growth, which was partially offset by increases in personnel and service costs.
Subscriber Base and Digital Service Users
As of June 30, 2026, Beeline's mobile subscriber base in Uzbekistan numbered 7.7 million users, which is 2.6% less than on June 30, 2025. The company explains the drop in subscribers by citing increased market competition and a focus on retaining high-value customers.
Of the total base, 6.6 million users used mobile internet in the second quarter, which is 5.8% less than the previous year. The 4G user base decreased by 4.4% to 5.6 million, but mobile data consumption per user increased by 29.4%, reaching 20.1 GB.
The number of multiplay subscribers simultaneously using voice, internet, and digital services reached 3.4 million, accounting for 49.1% of the monthly mobile subscriber base. Mobile ARPU grew by 4.7% in the second quarter to 35,296 soums (approximately US$2.9). For the first half, this indicator increased by 14.4% in USD and by 7.4% in local currency, reaching 41,220.4 soums (US$3.4) compared to 38,372.7 soums (US$3.0) the previous year. The ARPU growth is linked to increased mobile internet usage and a focus on retaining valuable subscribers.
The number of active users of Beeline's digital services reached 12.1 million in the second quarter. The Hambi money transfer service attracted 5.1 million users, the Kinom streaming platform attracted 2.4 million, the premium digital brand OQ attracted 2.1 million, and the Beepul payment service attracted 1.0 million users. The growth in Kinom and OQ users partially compensated for the decline in Beepul and Hambi.
In June, Beeline Uzbekistan entered into a partnership with DataVolt, agreeing to become the anchor tenant of the flagship TAS-1 data center in Tashkent Technopark. The parties are also considering cooperation on creating a data center in Bukhara to expand local cloud hosting and data processing capabilities in the country.
