Vimpelcom FY12 revenues increase 14% to USD23.06bn

6 Mar 2013

Amsterdam-based international telecoms group Vimpelcom has reported revenues of USD23.06 billion for the twelve months ended 31 December 2012, up 14% from USD20.26 billion one year earlier. EBITDA for FY12 grew 18% to USD9.77 billion, while net income was reported at USD2.15 billion, a rise of 295% year-on-year. The substantial increase in profitability was chiefly driven by fourth-quarter net profit of USD801 million (reversing a loss of USD381 million in 4Q11), boosted by a revaluing of its stake in Russian handset retailer Euroset. The company has adjusted the fair value of its stake in Euroset by USD606 million, in line with IFRS requirements. CAPEX for 2012 dropped 35% to USD4.12 billion.

Vimpelcom’s ‘Russia’ business unit weighed in with the lion’s share of revenue in 2012, reporting earnings of USD9.19 billion, up 1% year-on-year. Elsewhere, the firm’s ‘Europe & North America’ unit posted revenues of USD6.98 billion, down 10%. Meanwhile, all of the company’s other business divisions also saw their revenues increase, with ‘Africa & Asia’ up marginally at USD3.72 billion, ‘Ukraine’ reaching USD1.68 billion (2%) and ‘CIS’ rising to USD1.76 billion (10%). In operational terms, Vimpelcom’s consolidated mobile subscriber base increased 5% year-on-year to 214 million by 31 December 2012, with the group reporting that the biggest contribution came from its ‘Africa & Asia’ business unit, which has passed the 85 million-subscriber mark.

Russia, VEON