Vimpelcom Q2 net profit up 83%, beats forecasts

15 Aug 2012

Amsterdam-based telecoms group Vimpelcom Limited, which includes one of Russia’s top three mobile network operators Vimpelcom, posted an 83% year-on-year increase in net income for the three months to 30 June 2012, beating market expectations on the back of strong subscriber growth across its operational markets. The group reported net profit of USD488 million for the three months under review, up from USD267 million in 2Q11 (on a pro forma basis) and beating analyst forecasts of net profit of USD340.30 million. Vimpelcom said revenue for the second quarter dipped 4% y-o-y to USD5.75 billion, as fluctuations in local currencies versus the US dollar impacted on its bottom line. Nonetheless, the revenue figure was broadly in line with a Reuters’ poll forecast. Earnings before interest, taxation, depreciation and amortisation (EBITDA) climbed by 2% on an annualised basis to USD2.48 billion, again ahead of market expectations of EBITDA of USD2.38 billion.

In a statement, the carrier said: ‘Vimpelcom has made further progress in the second quarter of 2012, with year-on-year organic revenue growth of 4% and organic EBITDA growth of 8% … Whilst the results have been impacted by adverse currency movements, this organic performance highlights further solid execution of our strategy in our business units.’ Vimpelcom’s total mobile subscriber base grew 8% year-on-year to reach 208 million by 30 June 2012.

Russia, Beeline (Russia), VEON