Vimpelcom net income doubles on back of forex gains

25 Nov 2009

Vimpelcom, Russia’s second largest cellco by subscribers, reports that its third quarter net income more than doubled year-on-year to RUB13.5 billion (USD470 million). The gain was largely a result of foreign exchange movements and actually fell short of analyst forecasts. Sales came in at RUB71.3 billion, up from RUB68.9 billion twelve months ago. Capital expenditure meanwhile fell by 77.1% year-on-year to RUB 3.8 billion, but the company plans to boost spending next year. ‘For 2010 we expect [a] substantial increase in capital expenditure. We haven’t made the final guidance but it will be at least half as much as this year,’ Chief Executive Boris Nemsic told a news conference. The group’s active mobile subscriber base climbed to 65.4 million, up 13% year-on-year.

Russia, Beeline (Russia), VEON