Did VEON's (VEON) US$20 Million Mobilink Bet Just Recast Its Digital Islamic Banking Ambitions?

• Veon Group recently invested US$20,000,000 in Pakistan’s Mobilink Bank to accelerate the growth of its digital Islamic banking offerings in that market.
• This move deepens Veon’s integration of telecom and financial services in Pakistan, potentially strengthening its position in mobile-first, Sharia-compliant banking ecosystems.
• We’ll now examine how Veon’s US$20,000,000 push into Pakistan’s digital Islamic banking may influence the company’s broader investment narrative.

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VEON Investment Narrative Recap

To own VEON, you largely have to believe in its ability to turn growing digital usage in emerging markets into sustainable telecom and fintech fee income, while managing high leverage and macro volatility in places like Pakistan. The US$20,000,000 injection into Mobilink Bank supports the core fintech growth story in Pakistan but does not materially change the near term balance sheet risk from gross debt and ongoing refinancing needs.

The pending Nasdaq listing of Kyivstar, at a pro forma value of US$2.21 billion, is the most relevant development alongside VEON’s Pakistan fintech push, as both speak to crystallizing value in its digital and connectivity assets. Together, they frame the key near term catalyst around whether VEON can unlock capital from core holdings while continuing to invest in higher growth digital services such as mobile financial platforms.

Yet behind VEON’s digital banking expansion, investors should be aware of the very real impact that macro and currency shocks in Pakistan could...

Read the full narrative on VEON (it's free!)

VEON's narrative projects $5.1 billion revenue and $688.2 million earnings by 2028. This requires 7.0% yearly revenue growth and a $295.8 million earnings decrease from $984.0 million today.

Uncover how VEON's forecasts yield a $76.68 fair value, a 45% upside to its current price.

Exploring Other Perspectives

Four members of the Simply Wall St Community currently see VEON’s fair value anywhere between US$45.56 and US$507.22, underlining how far apart individual views can be. As you weigh those opinions, remember that VEON’s exposure to volatile currencies in markets like Pakistan can significantly affect reported results in US dollars and may shape how you interpret any fair value estimate.

Explore 4 other fair value estimates on VEON - why the stock might be worth over 9x more than the current price!

Build Your Own VEON Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your VEON research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
• Our free VEON research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate VEON's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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