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ISLAMABAD: Jazz Pakistan reported a robust 20.3% year-on-year (YoY) growth in total revenues for the first quarter of 2025 (1Q25), fueled by rapid digital expansion and increasing demand for its fintech services. According to VEON Group’s Q1 2025 financial results, digital revenues accounted for 27.7% of Jazz’s total income, highlighting the company’s strategic pivot towards digital transformation.
Telecom and infrastructure revenues grew by 12% YoY, backed by a 16% increase in 4G users and a 14% rise in mobile ARPU (Average Revenue Per User). The number of 4G users reached 53.3 million, pushing 4G penetration to 72.6%, up 8.6 percentage points YoY.
Jazz’s direct digital revenues surged by 49.5% YoY, driven by outstanding performance in its fintech verticals. JazzCash posted a 66.1% YoY revenue increase, while Mobilink Microfinance Bank (MMBL) reported 25.5% growth. JazzCash’s Monthly Active Users (MAUs) rose to 20.6 million, supporting daily issuance of around 142,000 digital loans. The Gross Transaction Value (GTV) reached PKR 3.27 trillion, up 59.7% YoY.
The retail network supporting JazzCash also expanded significantly, with nearly 341,000 active merchants (up 38.4% YoY) and almost 121,000 active agents.
Entertainment and Lifestyle Apps See Strong Uptake
Tamasha, Pakistan’s largest homegrown streaming platform, saw MAUs grow by 37.6% YoY to 16.5 million, fueled by exclusive cricket content including the ICC World Cup, PSL, and bilateral series. Broader coverage, such as the English Premier League and upcoming Paris Olympics, also boosted engagement.
SIMOSA, Jazz’s sim-care and lifestyle app, recorded a 40.2% YoY rise in MAUs to 20.9 million. The FikrFree app, launched in October 2024 as an AI-powered insurance and health marketplace, now has over 1 million MAUs and has facilitated the sale of 1.8 million policies.
Multiplay customers who use multiple Jazz services increased by 33.1% YoY, now comprising 37% of the total consumer base. These users generate 3.2 times more ARPU compared to voice-only users, making them a vital revenue stream for the company.
Jazz recorded a 13.2% YoY increase in EBITDA, although the EBITDA margin slightly declined to 42% due to a higher contribution from digital services, which carry lower margins than telecom operations. The company continues to invest in expanding its digital portfolio, which positively impacts long-term profitability.
Strategic Capex and Infrastructure Developments
Capital expenditures reached PKR 9.49 billion in 1Q25, marking a 78.4% YoY increase. The capex intensity stood at 8.8%, reflecting Jazz’s focus on 4G expansion and digital innovation. Regulatory processes for Jazz’s strategic partnership with Engro Corporation Limited to manage infrastructure assets are also progressing.
VEON’s broader digital ecosystem also showed impressive growth. Beepul’s revenue grew 2.6x in 1Q25, with MAUs reaching 2.3 million. In Uzbekistan, Hambi recorded 4.3 million MAUs and ranked as the country’s top app on Google Play. Other growing platforms include ROX (Pakistan – 700K MAUs), IZI (Kazakhstan – 590K MAUs), and OQ (Uzbekistan – 450K MAUs). Ryze, launched in Bangladesh in November 2024, reached 100K MAUs by March 2025.
Net debt decreased to USD 2.91 billion at the end of 1Q25, down from USD 2.93 billion in 4Q24. Net debt excluding leases stood at USD 1.81 billion, resulting in a lower net debt/EBITDA ratio of 1.67x (1.23x excluding leases). These figures exclude USD 303 million linked to Jazz’s banking operations in Pakistan.
