Beeline Uzbekistan Revenue Up in Q2 and H1 2026

Tashkent, Uzbekistan (UzDaily.uz) — International operator VEON reported second-quarter and first-half 2026 financial results for its Uzbek subsidiary Beeline.

The company demonstrated revenue and digital earnings growth against a backdrop of reduced capital expenditures and a strengthening of the national currency against the US dollar.

Second-Quarter Results

Beeline's revenue in Uzbekistan in the second quarter of 2026 grew by 5.3% year-on-year to 1,009,189 million soums (US$84 million). Revenue from telecommunications and infrastructure services increased by 2.9% to 854,655 million soums (US$71 million), compared to 830,463 million soums (US$65 million) a year earlier.

The dynamics were influenced by ARPU growth following tariff revisions, family rate packages, and increased revenue from network infrastructure and roaming, while a decline in the active subscriber base acted as a constraining factor.

Digital revenue grew by 21.0% to 154,534 million soums (US$13 million), up from 127,736 million soums (US$10 million) a year earlier, and its share of total company revenue rose to 15.3% from 13.3%. Mobile financial services made the primary contribution to growth, including an increase in peer-to-peer transfers, alongside the development of the BuildX platform and other Beeline digital products.

EBITDA rose by 2.3% to 371,692 million soums (US$31 million), compared to 363,486 million soums (US$28 million) a year earlier, while the EBITDA margin fell by 1.1 percentage points to 36.8%. Operating profit (EBIT) increased by 7.8% to 195,554 million soums (US$16 million), with an EBIT margin of 19.4%.

Capital expenditures in the second quarter fell by 47.2% year-on-year to 193,324 million soums (US$16 million), down from 366,424 million soums (US$29 million) a year earlier. Capital expenditure intensity over the last twelve months stood at 20.7% compared to 34.2% a year earlier.

First-Half Results

For the first six months of 2026, Beeline's revenue in Uzbekistan grew by 12.9% in US dollar 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) a year earlier. The company noted that the difference between the growth rates in US dollars and local currency is explained by the strengthening of the soum against the US dollar during the reporting period.

Revenue from telecommunications and infrastructure services for the half-year increased by 9.9% in US dollars to 1,691,604 million soums (US$140 million), up from 1,639,495 million soums (US$127 million) a year earlier. The company attributes the local currency growth primarily to tariff revisions, higher revenue from digital financial services, and increased device sales.

Revenue from digital financial services grew at the fastest pace, rising 95.0% in US dollars to 128,072 million soums (US$10 million), compared to 69,903 million soums (US$5 million) in the first half of 2025. Revenue from other digital services grew by 8.0% to 190,203 million soums (US$16 million).

Operating expenses for the half-year increased by 15.4% to 1,277,241 million soums (US$105 million). Adjusted EBITDA rose by 8.7% in US dollars and by 2.0% in local currency to 733,448 million soums (US$61 million), compared to 718,921 million soums (US$56 million) a year earlier. The EBITDA margin fell by 1.4 percentage points to 36.5%. The company attributes the local currency EBITDA growth to higher revenue, which was partially offset by increased personnel and services costs.

Subscriber Base and Digital Service Users

As of 30 June 2026, Beeline's mobile subscriber base in Uzbekistan stood at 7.7 million users, down 2.6% compared to 30 June 2025.

The company attributes the drop in subscriber numbers to increased market competition and a focus on retaining high-value customers. Of the total base, 6.6 million users in the second quarter were mobile internet users, 5.8% fewer than a year earlier. The 4G user base contracted by 4.4% to 5.6 million, while mobile data consumption per user grew by 29.4% to 20.1 GB.

The number of multiplay subscribers using voice, data, and digital services simultaneously reached 3.4 million, representing 49.1% of the monthly mobile subscriber base.

Mobile ARPU for the second quarter grew by 4.7% to 35,296 soums (~US$2.9). For the half-year, the indicator grew by 14.4% in US dollars and by 7.4% in local currency to 41,220.4 soums (US$3.4), compared to 38,372.7 soums (US$3.0) a year earlier. The company links ARPU growth to increased mobile data usage and its focus on retaining high-value subscribers.

The number of active users of Beeline digital services reached 12.1 million in the second quarter. The Hambi money transfer service attracted 5.1 million users, the Kinom streaming platform 2.4 million, the premium digital brand OQ 2.1 million, and the Beepul payment service 1.0 million users. User growth for Kinom and OQ partially offset declines for Beepul and Hambi.

In June, Beeline Uzbekistan formed a partnership with DataVolt, agreeing to become the anchor tenant of the flagship TAS-1 data center in the Tashkent Technopark.

The parties are also considering cooperation to create a data center in Bukhara, aimed at expanding local cloud hosting and data processing capabilities in the country.