Beeline Uzbekistan Revenue Up in Q2 and H1 2026

Beeline Uzbekistan, a subsidiary of the international operator VEON, has reported an increase in revenue for both the second quarter and first half of 2026. This growth occurred despite reduced capital expenditures and was aided by the strengthening of the national currency against the US dollar.

**Second-Quarter Performance**

In the second quarter of 2026, Beeline's revenue in Uzbekistan climbed by 5.3% year-on-year, reaching 1,009,189 million soums (US$84 million). Revenue from telecommunications and infrastructure services saw a 2.9% increase, totaling 854,655 million soums (US$71 million), up from 830,463 million soums (US$65 million) in the prior year. This positive trend was driven by higher Average Revenue Per User (ARPU) due to tariff adjustments, the introduction of family rate packages, and increased earnings from network infrastructure and roaming. However, a decrease in the active subscriber base partially offset these gains.

Digital revenue experienced a significant 21.0% surge, reaching 154,534 million soums (US$13 million), compared to 127,736 million soums (US$10 million) a year earlier. Consequently, digital revenue's contribution to the company's total revenue rose from 13.3% to 15.3%. Mobile financial services, particularly an increase in peer-to-peer transfers, along with the expansion of the BuildX platform and other Beeline digital offerings, were the primary drivers of this growth.

EBITDA for the quarter increased by 2.3% to 371,692 million soums (US$31 million), up from 363,486 million soums (US$28 million) in the previous year, though the EBITDA margin slightly decreased by 1.1 percentage points to 36.8%. Operating profit (EBIT) saw a 7.8% rise to 195,554 million soums (US$16 million), with an EBIT margin of 19.4%.

Capital expenditures in the second quarter were significantly reduced, falling 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 prior. The capital expenditure intensity over the last twelve months stood at 20.7%, a decrease from 34.2% in the previous year.

**First-Half Performance**

For the first six months of 2026, Beeline's revenue in Uzbekistan grew by 12.9% in US dollar terms and 6.0% in local currency, reaching 2,009,879 million soums (US$166 million) compared to 1,896,950 million soums (US$147 million) in the same period last year. The company attributed the disparity between US dollar and local currency growth rates to the appreciation 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. This local currency growth was primarily driven by tariff revisions, higher revenue from digital financial services, and increased device sales.

Digital financial services revenue experienced the most rapid growth, soaring by 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 also 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 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 decreased by 1.4 percentage points to 36.5%. The company attributed the local currency EBITDA growth to higher revenue, which was partially offset by increased personnel and services costs.

**Subscriber Base and Digital Service Engagement**

As of June 30, 2026, Beeline's mobile subscriber base in Uzbekistan stood at 7.7 million users, a 2.6% decrease compared to June 30, 2025. The company attributed this decline to heightened market competition and a strategic focus on retaining high-value customers. Of the total base, 6.6 million users in the second quarter were mobile internet users, a 5.8% reduction from the previous year. The 4G user base contracted by 4.4% to 5.6 million, while mobile data consumption per user surged by 29.4% to 20.1 GB.

The number of multiplay subscribers, who simultaneously utilize voice, data, and digital services, 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, this indicator increased by 14.4% in US dollars and 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 linked ARPU growth to increased mobile data usage and its emphasis 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 announced a partnership with DataVolt, agreeing to become the anchor tenant of the flagship TAS-1 data center located in the Tashkent Technopark. The companies are also exploring collaboration to establish a data center in Bukhara, aiming to expand local cloud hosting and data processing capabilities within the country.