Vimpelcom performs above par

31 Aug 2007

Vimpelcom, Russia’s second largest mobile operator by subscribers, has posted a second-quarter year-on-year net profit rise of 84.3%, well above market expectations, due mainly to growing usage. The cellco reported net income of USD359.3 million versus USD194.9 million in the same period of 2006 and USD277.3 million in the first quarter of 2007. In a poll, analysts had forecast second-quarter earnings of USD324 million. CEO Alexander Izosimov said in a statement that his company achieved all-time records in key parameters, including revenue, OIBDA, net income, operating cash flow, and growth was further supported by improving operating parameters, including monthly average revenue per user (ARPU) and minutes of use in all markets. The consolidated results include Vimpelcom’s operations in Russia, Kazakhstan, Ukraine, Uzbekistan, Tajikistan, Georgia and Armenia. OIBDA increased 59.7% to USD896.8 million, and net operating revenues rose 53.1% to USD1.72 billion. ARPU reached USD12.3 from USD9 a year before, above analysts’ expectations of USD10.6. ‘This further validates our belief in the high growth potential of the CIS, which is becoming an increasingly important part of our business,’ Izosimov said.

Russia, Beeline (Russia), VEON