Vimpelcom Q3 revenues increase 116%; consolidated customers pass 200 million

14 Nov 2011

Russian telecoms group Vimpelcom has announced revenues of USD6.093 billion for the three months ended 30 September 2011. This figure represents an increase of 116% from USD2.824 billion one year earlier. EBITDA for the same quarterly period grew from USD1.358 billion to USD2.535 billion, a rise of 87%, while net income dropped 79% from USD496 million to USD104 million; CAPEX more than doubled, to USD1.016 billion. Vimpelcom’s third quarter results include the assets related to its USD6.5 billion merger with Wind Telecom (formerly Weather Investments), which closed on 15 April 2011. On a pro forma basis, group revenues increased 10% from USD5.519 billion, EBITDA grew 4% from USD2.435 billion and net income dropped 77% to USD460 million.

Vimpelcom’s ‘Russia’ business unit weighed in with the lion’s share of Q3 revenues, reporting earnings of USD2.397 billion for the three-month period, up 14% year-on-year. Elsewhere, the firm’s ‘Europe and North America’ unit posted revenues of USD1.970 billion, up 11% on a pro-forma basis. Meanwhile, all of the company’s other newly-created business units also saw their revenues increasing on a pro-forma basis, with ‘Africa and Asia’ growing to USD957 million (up 5%), ‘Ukraine’ reaching USD437 million (3%) and ‘CIS’ rising to USD430 million (19%). In operational terms Vimpelcom reported a consolidated mobile subscriber base of 199 million as at 30 September 2011, up 116% from 92 million one year earlier; on a pro-forma basis customers increased 11% from 179 million. The telco confirmed that its consolidated customer base went on to pass the 200 million mark in October.

Vimpelcom CEO Jo Lunder commented: ‘We are satisfied with the solid performance we have achieved across our business units in the third quarter during which we have achieved double-digit top-line growth and surpassed the 200 million subscriber mark in October. Our cash flow of USD1.9 billion from operations remains strong, increasing by almost 70%, however our net result declined mainly due to non-cash items. In Russia, even though we achieved strong revenue and subscriber growth, it was offset by an increase in costs leading to declining profitability. In line with our announced strategy, we will focus on cash flow growth in this market by tackling the key issues through an operational excellence programme we have implemented and by leveraging the synergies of the enlarged Vimpelcom. The integration process with Wind telecom is ahead of schedule and will be completed by year end’.

Russia, Beeline (Russia), VEON