Vimpelcom’s net profit rises 70.7% year-on-year

30 Nov 2007

Vimpelcom has issued its financial and operating results for the three months ended 30 September 2007, covering its consolidated Beeline mobile operations in Russia, Kazakhstan, Ukraine, Uzbekistan, Tajikistan, Georgia and Armenia, as well as its Armenian fixed line business. Group revenues reached a record high of USD1.956 billion in the third quarter, a year-on-year increase of 43.9% and a quarter-on-quarter rise of 13.9%. OIBDA also reached a record figure of USD1.015 billion, up 41.4% year-on-year, as did net income, which climbed 70.7% y-o-y to USD458 million. Total active mobile subscribers stood at 50.686 million at the end of September 2007, up from 42.644 million a year earlier.

In Vimpelcom’s home market of Russia, net profit increased by USD143 million year-on-year in July-September 2007 to USD423 million (92% of total group profit), on turnover that rose 34.5% from USD1.228 billion in the third quarter of 2006 to 1.652 billion in 3Q07. Active Russian subscribers increased by 7.8% year-on-year to 41.802 million at the end of September, whilst blended monthly ARPU for the three-months was USD13.4, compared to USD10.6 in the year-ago period. In Ukraine, active subscribers rose by 188.8% year-on-year to 2.212 million; in Kazakhstan, active customers reached 4.343 million (up 67.3% y-o-y); the Uzbekistan active user base grew by 227.7% in twelve months to 1.587 million; and the Tajikistan unit recorded year-on-year customer growth of 3,790% to 268,000 at the end of the period under review.

Vimpelcom’s Armenian operation, acquired in November 2006, saw a 5.1% quarter-on-quarter decrease in active mobile subscribers in 3Q07, to 447,000. Mobile revenues in the country saw 11.2% quarter-on-quarter growth, whilst the Russian parent says it has taken ‘a number of steps to strengthen the competitive position.’ Fixed line subscribers in Armenia increased by 1% in the third quarter to 616,000. Vimpelcom launched commercial operations in Georgia in March 2007, and is in the process of building out its network and establishing sales channels. By the end of the third quarter, active Georgian subscribers numbered 26,600, whilst the company reported 117% revenue growth on a quarter-on-quarter basis.