Vimpelcom Q3 revenues drop 6%; net income grows 185%

14 Nov 2012

Amsterdam-based telecoms group Vimpelcom has announced revenues of USD5.747 billion for the three months ended 30 September 2012, down 6% from USD6.096 billion one year earlier. EBITDA for 3Q12 dropped 2% from USD2.572 billion to USD2.530 billion, while net income was reported at USD538 million, an increase of 185% year-on-year. The company says that the sharp increase in net profit was due to higher profit before tax and a lower effective tax rate, due to certain net operating losses incurred in 3Q11. Meanwhile, CAPEX dropped 31% in the period, to USD829 million.

Vimpelcom’s ‘Russia’ business unit weighed in with the lion’s share of Q3 revenues, at USD2.326 billion, albeit down 3% year-on-year. Elsewhere, the firm also saw revenues slump at its ‘Europe and North America’ unit, which posted sales of USD1.662 billion, down 16%, and ‘Africa & Asia’ (down 6% to USD904 million). Meanwhile, revenues in ‘Ukraine’ reached USD452 million (+3%) while the ‘CIS’ unit posted the biggest increase, up 11% to USD478 billion. In operational terms Vimpelcom reported a consolidated mobile subscriber base of 212 million users as at 30 September 2012, up 7% from 199 million one year earlier.

Vimpelcom CEO Jo Lunder commented: ‘We have made further good progress in the execution of our strategy, with strong organic growth in group revenue and EBITDA. The EBITDA margin of 44% is the highest reported since completion of the Wind Telecom acquisition in April 2011. In our emerging markets [excluding Italy] we delivered 7% organic revenue growth and a 14% increase in EBITDA. In Russia, the positive trend seen in the first half continued, with year-on-year revenue growth of 7%, in part driven by strong mobile data revenue growth of 38%. EBITDA in Russia increased 16% year-on-year, with an improvement in the EBITDA margin to 43.2%. Our business in Italy has continued to outperform competition also showing strong mobile data revenue growth and CIS, Asia & Africa and Ukraine each delivered a solid set of figures in their respective markets’.

Russia, VEON