Vimpelcom FY11 revenues up 7% to USD23.46bn; subscriber base up 13% to 205 million

13 Mar 2012

Amsterdam-based telecoms group Vimpelcom has announced revenues of USD23.46 billion for the twelve months ended 31 December 2011, up 7% from USD21.83 billion one year earlier. EBITDA for FY11 grew 1% from USD9.28 billion to USD9.36 billion, while net income was reported at USD488 million. CAPEX for 2011 dropped 16% to USD3.17 billion. Vimpelcom’s full year results include the assets related to its USD6.5 billion merger with Wind Telecom (formerly Weather Investments), which closed on 15 April 2011. The company says that all financial comparisons are on a pro forma basis, as they ‘provide the most meaningful comparison of financial performance’.

Vimpelcom’s ‘Russia’ business unit weighed in with the lion’s share of FY11 revenues, reporting earnings of USD9.06 billion, up 11% year-on-year. Elsewhere, the firm’s ‘Europe and North America’ unit posted revenues of USD7.77 billion, up 5%. Meanwhile, all of the company’s other business divisions also saw their revenues increase, with ‘Africa & Asia’ growing to USD3.72 billion (up 5%), ‘Ukraine’ reaching USD1.64 billion (4%) and ‘CIS’ rising to USD1.59 billion (17%). In operational terms Vimpelcom reported a consolidated mobile subscriber base of 205 million as at 31 December 2011, up 13% from 182 million one year earlier; the telco had previously announced that its consolidated customer base passed the 200 million mark in October.

Vimpelcom CEO Jo Lunder commented: ‘Vimpelcom has delivered strong operational performance across all business units in the fourth quarter of 2011, driving organic revenue growth of 5%, stable EBITDA and strong cash flows of USD1.8 billion in the period. The final dividend payment of USD0.35 per common share underscores the company’s commitment to pay annual dividends of at least USD0.80 per common share from 2011 to 2014. In Russia we are implementing our plans to improve the business performance and we regained market share during the year, which we intend to maintain while increasing our focus on profitable growth. In Italy, we saw further market share increases in the mobile and fixed line segments. Data revenues grew strongly in both these markets and in the Ukraine. Our ‘Africa & Asia’ business unit continued to deliver excellent subscriber growth and the CIS unit produced double-digit revenue growth. Our focus in 2012 will continue to be on the delivery of our ‘Value Agenda’ and the 2011 results provide a good platform for profitable growth and improved cash flows. The process of integrating the businesses acquired in 2011 is now completed and in 2012 we expect to leverage the benefits of our increased size and capabilities.’

Russia, VEON