Strong quarter for Vimpelcom

4 Sep 2006

Russia’s second largest cellular operator Vimpelcom has reported a 22.7% rise in second quarter net profit to USD194.9 million. Revenues were up 45.7% to USD1.12 billion thanks to a rise in both subscriber numbers and average monthly revenue per user (ARPU). ARPU rose from USD6.6 in the first quarter to USD7.5 in the second quarter, while customer numbers increased 5.8% to 50.8 million.

Meanwhile, Vimpelcom has offered to cut the interconnect fees it charges to the smaller Russian mobile operators. Along with the country’s two other main cellcos – MTS and MegaFon – it is currently under investigation by regulators for lowering interconnect fees for calls between these big three networks, while minor players are charged higher fees. However, Vimpelcom now says it is willing to reduce charges across the board to RUB0.95. In a company statement, CEO Alexander Izosimov commented: “We believe that operators are able to come to an agreement and solve the issues of industry cooperation themselves”.

Russia, Beeline (Russia), VEON