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.
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.
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.
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.
An initiative has been put forward in Uzbekistan to establish a unified tax regime for individual entrepreneurs and the self-employed. This idea was proposed by the Institute of Fiscal Studies.
According to the study conducted, both groups currently pay a tax equal to one basic calculation unit, but the payment frequency differs: individual entrepreneurs (IEs) pay taxes monthly, while the self-employed do so annually. This difference leads to a 12-fold imbalance in the tax burden: IEs pay 5.28 million soums per year, whereas the self-employed pay only 440 thousand soums.
International experience shows that a single category of self-employed individuals is usually applied, with contributions tied either to declared income or to the minimum wage. Analysts suggest linking the tax to the minimum wage, which will be 1.36 million soums starting September 1, 2026, and setting a monthly payment of 12% of this amount, equivalent to 163.2 thousand soums.
The proposed transition to the new system should be carried out in stages: initially, a payment of 50 thousand soums monthly is established, followed by a gradual increase to the target value according to an approved schedule.
Furthermore, a plan to introduce mandatory social tax payments for the self-employed was previously discussed in Uzbekistan. Currently, only about 800 thousand people out of the total registered citizens, which amounts to 2.8 million, make such contributions.
A proposal has been put forward in Uzbekistan to change the excise tax system for alcoholic beverages, which involves increasing excise duties while simultaneously lowering final retail prices.
The Institute suggests increasing the excise rate from 63 to 70 thousand soums in 2027, but taking into account the projected alcohol rate, which is estimated at 25 thousand soums. Thanks to this change, the cost of one liter of vodka could potentially drop to 45 thousand soums.
Furthermore, due to the increase in excise taxes next year, including fortified wine (increasing from 12,000 to 12,600 soums), natural wine (from 10,000 to 10,500 soums), and beer (from 4,000 to 4,200 soums), the country's budget could receive an additional 62.1 billion soums, according to the institute's calculations.
For the successful implementation of these measures, it is proposed to make corresponding amendments to the Tax Code and develop a special support program for entrepreneurs. This program should include duty-free import of equipment, provision of preferential loans, and simplification of the certification procedure. Analysts also recommend publishing excise rates for a three-year period in advance.
It was previously reported that in 2026, Uzbekistan will begin the phased equalization of excise rates for both domestic and imported alcohol and tobacco, in line with WTO requirements.
The meeting of the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI), consisting of six members, began on Monday amid expectations that the current repo rate level will be maintained. The MPC's decision is scheduled to be announced on August 5th.
Despite steady domestic economic growth, most experts predict that the MPC will adopt a cautious approach due to ongoing global uncertainty and inflation risks.
In June, the central bank kept the key rate unchanged at 5.25 percent, adopting a wait-and-see stance as policymakers assessed the consequences of the conflict in the Middle East. The central bank raised its forecast for retail inflation for 2026-27 to 5.1 percent from the previous 4.6 percent, linked to rising commodity costs caused by higher global energy prices being passed on to retail prices for gasoline and diesel.
However, it lowered the GDP forecast for the fiscal year 27 to 6.6 percent compared to the 6.9 percent estimate made in April.
Sanjay Malhotra, RBI Governor, will announce the results of the two-month meeting on August 5th. Madan Sabnavis, Chief Economist at Bank of Baroda, noted that monetary policy is being decided amidst persistent global uncertainty and a lack of clarity regarding the end of the war. He emphasized that crude oil prices and currency will remain volatile and unpredictable.
Sabnavis added that despite gradual inflation growth, which is likely to continue due to food price increases driven by seasonal factors and monsoons, growth remains stable according to high-frequency indicators. In light of this, the MPC is likely to maintain the status quo regarding both the repo rate and the overall stance.
Dipti Deshpande, Senior Director and Chief Economist at Crisil Ltd, also expects the central bank to keep rates unchanged in the August review. In her view, although the MPC may acknowledge emerging inflationary risks, it would prefer to wait for greater clarity on the impact of two major shocks—the protracted conflict in the Middle East and ongoing monsoon-related uncertainty—on growth dynamics and inflation. Both these factors pose risks to growth and inflation prospects, presenting policymakers with an increasingly complex choice.
D K Srivastava, Chief Policy Advisor at EY India, forecasts Q1 growth between 7.1 and 7.3 percent. Meanwhile, the average Consumer Price Index (CPI) for the April-June period remained close to the MPC's target of 4 percent. Srivastava stated that monetary policy is likely to keep the repo rate at 5.25 percent in the August 2026 review, and future RBI rate decisions will depend on data, given the continued uncertainty regarding crude oil prices related to the situation in the Middle East.
Vinay Pai, Managing Director and Head of Fixed Income at Equirus Capital, believes that upcoming monetary policy will primarily be determined by domestic inflation indicators, liquidity conditions, and economic growth, rather than following global monetary policy developments. However, if high global yields persist and portfolio debt inflows slow down, the RBI is likely to maintain a neutral and cautious policy stance rather than aggressively cutting rates.
Pradip Aggarwal, Founder and Chairman of Signature Global (India), noted that the MPC meeting takes place against a backdrop of heightened global uncertainty caused by geopolitical tensions, trade disruptions, and commodity price volatility. He also stressed that the favorable interest rate environment has stimulated the entry of many homebuyers into the market, both for first-time and end-use purchases. According to him, maintaining this supportive policy will help strengthen housing demand, boost allied sectors, and continue to contribute significantly to India's economic growth.
Mandar Pitale, Head of Financial Markets at SBM Bank (India), believes that the current growth and inflation dynamics point to growth risks alongside a managed inflation trajectory in the near future. Combined with increased global uncertainty, this may lead the MPC not to rush towards a rate hike at the upcoming August meeting.
Shrikant Goyal, Co-founder of Getfive, noted that although inflation has risen slightly in recent months, it remains within the RBI's manageable range. Consequently, he expects the central bank to maintain the status quo on interest rates, which will provide substantial support to the MSME sector and the economy as a whole.
