Vimpelcom Q1 revenues increase 22.9%, net income jumps 54.6%

2 Jun 2011

Russia-based telecoms group Vimpelcom has announced revenues of USD2.74 billion for the three months ended 31 March 2011. This figure represents an increase of 22.9% from USD2.23 billion one year earlier. Net income for the same period grew from USD381.5 million to USD589.7 million, a rise of 54.6%, while OIBDA was up 16.2% to USD1.21 billion. CAPEX more than doubled, up to USD456.4 million, as the firm maintained its ‘improved phasing of CAPEX throughout the year’. In operational terms Vimpelcom recorded 94.864 million mobile subscribers as at 31 March, up from 66.821 million one year earlier. Vimpelcom has indicated that it will begin reporting consolidated financial results – including the assets associated with its USD6.5 billion merger with Wind Telecom (formerly Weather Investments) starting from 15 April 2011. As a result of the transaction, Vimpelcom now owns – through Wind Telecom – 51.7% of Orascom Telecom and 100% of Wind Telecomunicazioni (Wind Italy). The combination of Vimpelcom and Wind Telecom creates the world’s sixth largest mobile telecoms provider in terms of subscribers, with operations in 20 countries.

Alexander Izosimov, Vimpelcom’s CEO commented: ‘With the consolidation of the assets of Wind Telecom into our portfolio, the scale of our operations has nearly doubled, making Vimpelcom a truly global telecom operator with one of the largest customer bases in the world. I truly believe that we have strong prospects for profitable growth going forward. We are now focusing on the integration of our businesses, extracting synergies and capitalising on the company’s strengthened leadership, scale and market expertise in order to efficiently manage our substantially expanded operations. We understand the success of the group depends on the performance of our businesses in each of our markets and, therefore, we continue to closely monitor and manage each of our country-level operations in Russia, Ukraine, the CIS and South-East Asia. The first quarter demonstrates the development of our businesses is progressing as planned, with year-on-year revenue growth across our business units. In particular, our actions in Russia to strengthen our competitive position are delivering positive results and, although challenges remain, we expect further progress as our programmes continue to unfold. Overall, we maintain our focus on revenue growth, efficiency and optimisation of our market positions across our business units. With our advantages of scope and scale, coupled with strengthening market positions, we are confident Vimpelcom will deliver value to all of its stakeholders.’

Russia, Beeline (Russia), VEON