Vimpelcom beats expectations, warns of effects of saturation

18 Nov 2005

Russian mobile group Vimpelcom has reported third quarter profits just ahead of analyst expectations, thanks to continued strong subscriber growth and effective cost-control measures. Vimpelcom reported a net profit of USD194.9 million for the three months ended 30 September 2005 on the back of a 50% hike in revenues, up to USD890.3 million. The cellco ended the period with 38.4 million mobile users in Russia, of which 8.88 million were in Moscow. The cellco warned that with Russian mobile penetration reaching saturation levels, subscriber growth will soon slow, whilst most new additions are likely to be lower revenue users. Vimpelcom’s Kazakhstan business KaR-Tel oversaw subscriber growth of 18% in the quarter, to end September with 1.65 million customers.

Russia, Beeline (Russia), KaR-Tel (Beeline), VEON