Vimpelcom announces first post-consolidation results; Q2 revenues rise 109%

7 Sep 2011

Moscow-based telecoms group Vimpelcom has announced revenues of USD5.532 billion for the three months ended 30 June 2011. This figure represents an increase of 109% from USD2.642 billion one year earlier. EBITDA for the same quarterly period grew from USD1.260 billion to USD2.184 billion, a rise of 73%, while net income dropped 29% from USD335 million to USD239 million; CAPEX almost tripled, to USD1.016 billion. Vimpelcom’s second quarter results include, for the first time, the assets associated with its USD6.5 billion merger with Wind Telecom (formerly Weather Investments), which closed on 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). It was claimed that the combination of Vimpelcom and Wind Telecom created the world’s sixth largest mobile telecoms provider in terms of subscribers, with operations in 20 countries.

Vimpelcom’s ‘Russia’ business unit weighed in with the lion’s share of Q2 revenues, reporting earnings of USD2.329 billion for the three-month period, up 14% year-on-year. Elsewhere, the firm’s ‘Europe and North America’ unit posted revenues of USD2.015 billion, up 10% on a pro-forma basis. Meanwhile, all of the company’s other newly-created business units also saw their revenues increase on a pro-forma basis, with ‘Africa and Asia’ growing to USD949 million (up 5%), ‘Ukraine’ reaching USD412 million (+ 6%) and ‘CIS’ rising to USD389 million (+ 16%). In operational terms Vimpelcom reported a consolidated mobile subscriber base of 192.742 million as at 30 June 2011, up 116% from 89.373 million one year earlier; on a pro-forma basis customers increased 11% from 174.420 million.

Vimpelcom CEO Jo Lunder commented: ‘This quarter in which our transformational merger with Wind Telecom closed, shows solid performance across all of our business units. Our diligent efforts resulted in an improvement in our market position in Russia, relative out-performance of the market in Italy, and continued profitable growth across our operations in emerging markets. Moreover, we are leveraging our scale advantage, which is reflected by our ability to deliver synergies from the merger with Kyivstar ahead of expectations. And, although we are early in the process of integrating Wind Telecom, our confidence in significant synergies from our enlarged company is reaffirmed. Looking ahead, we will maintain our focus on integrating our businesses and driving sustainable, profitable growth and increased cash flows by capturing opportunities in our emerging markets and by increasing focus on both fixed and mobile broadband in our more mature markets. I am confident that we have a strong platform for improvement and for sustainable profitable growth’.

Russia, Beeline (Russia), VEON