VimpelCom reports 2Q profit up 31%

29 Aug 2008

VimpelCom, Russia’s second-largest cellco by subscribers, reported a 31% increase in profit for the second quarter to 30 June 2008. Net income increased to USD470.2 million from USD359.3 million twelve months previously. Revenue climbed 52.1% to USD2.61 billion from USD1.72 billion. Operating income before depreciation and amortization (OIBDA) for the company as a whole rose 36% to USD1.22 billion year-on-year. In Russia, OIBDA rose 36% to USD1.06 billion with a margin of 47.3%.

VimpleCom CEO Alexander Izosimov said, ‘The increase in revenue was driven by fast organic growth in both our mobile and fixed line operations as well as by the first full quarter consolidation of Golden Telecom’. On 29 February this year VimpleCom acquired Golden Telecom for USD4.3 billion to create the country’s first integrated fixed and mobile operator and expand into the fast growing broadband internet market

VimpelCom had 53.7 million subscribers in the former Soviet countries at the end of June, an addition of 6 million from a year earlier. Monthly average revenue per user (ARPU) rose in Russia to USD14.7 from USD12.3 a year ago. The company, which operates under the Beeline brand, provides services in Russia, Ukraine, Uzbekistan, Tajikistan, Kazakhstan, Armenia and Georgia.

In other news, VimpelCom said this week it had signed an agreement with Apple to become the country’s first operator to offer the 3G iPhone.

Russia, Beeline (Russia), VEON