Vimpelcom 1Q12 revenues increase 3% on a pro forma basis

15 May 2012

Amsterdam-based telecoms group Vimpelcom has announced revenues of USD5.619 billion for the three months ended 31 March 2012, up 3% from USD5.481 billion one year earlier. EBITDA for 1Q12 grew 1% from USD2.285 billion to USD2.311 billion, while net income was reported at USD318 million, a drop of 29% year-on-year. CAPEX for 1Q12 dropped 13% to USD632 million. Vimpelcom’s first quarter results include the assets related to its USD6.5 billion merger with Wind Telecom (formerly Weather Investments), which closed on 15 April 2011. As such, 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 Q1 revenues, reporting earnings of USD2.225 billion, up 8% year-on-year. Elsewhere, the firm’s ‘Europe and North America’ unit posted revenues of USD1.766 billion, down 5%. Meanwhile, all of the company’s other business divisions also saw their revenues increase, with ‘Africa & Asia’ growing to USD927 million (up 4%), ‘Ukraine’ reaching USD385 million (+3%) and ‘CIS’ rising 8% to USD379 billion. In operational terms Vimpelcom reported a consolidated mobile subscriber base of 209 million users as at 31 March 2012, up 12% from 186 million one year earlier.

Vimpelcom CEO Jo Lunder commented: ‘We have delivered strong organic EBITDA and revenue growth leading to another quarter of good cash flows. The benefits of executing on our strategy can be seen across our businesses: in Russia, our focus on profitable growth has delivered a strong organic increase of 9% in EBITDA and 11% in revenues. In the Africa & Asia business unit organic revenues rose by 9%, with a particularly strong contribution from Pakistan. In Italy we again gained market share, outperforming our competitors, and our Ukraine and CIS business units delivered solid revenue increases. We will continue to review our portfolio of operations and we will remain focused on profitable growth and cash generation.’

Russia, VEON