Vimpelcom reports Q1 results

27 May 2010

Vimpelcom, Russia’s third largest wireless network operator in terms of subscribers, said net profit for the three months ended 31 March 2010 was USD392 million, excluding Kyivstar, against a USD297 million net loss a year ago. ‘Our quarterly results give us confidence that the development of our business is on track. Looking ahead, we will focus on completing the integration and organisational structure of our new company in order to deal with the changing industry landscape,’ said chief executive Alexander Izosimov. Vimpelcom’s earnings were supported by the appreciation in the rouble and other operating currencies against the dollar as it recorded a USD105 million foreign exchange gain in the first quarter against a forex loss of USD746 million a year ago, and saw revenues improve due mainly to currency translation effect. Total sales rose 13% year-on-year to USD2.23 billion, partly helped by the consolidation of a subsidiary in Kyrgyzstan, while revenue on its home market was up a moderate 1.9% in rouble terms amid a slow recovery in demand. Operating income before depreciation and amortisation (OIBDA) increased 10.9% to USD1.05 billion and the OIBDA margin slid to 47.2% from 48.1% a year ago.

Russia, Beeline (Russia), VEON