Vimpelcom posts flat sales but higher EBITDA for first quarter of 2013

15 May 2013

Russian giant Vimpelcom has unveiled its first quarter results showing that revenue for the three month period ending 31 March was almost unchanged from the corresponding period one year ago. Sales for the quarter stood at USD5.591 billion, down marginally from USD5.619 last year. EBITDA inched up 2% year-on-year to USD2.348 billion, while operating income came in at USD1.109 billion thanks in part to declining amortisation applied to intangible assets associated with customer relationships as part of the Wind Telecom acquisition, as well as lower losses recognised on equipment sales and asset disposals.

The company’s home market of Russia accounted for 41% of the group’s sales during the period, and also 41% of the group’s EBITDA. Its next largest business unit is in Italy, which contributed 29% of group revenue and 26% of group EBITDA, ahead of Africa & Asia (15% of sales, 18% of EBITDA), Ukraine (7% of sales, 8% of EBITDA) and other CIS countries (8% of sales, 9% of EBITDA), along with minor inter-segment eliminations.

Operationally, Vimpelcom’s Russian unit ended March with more than 55.666 million subscribers, up by just 40,000 year-on-year, with a monthly ARPU during the period of RUB321, up from RUB314 last year. The company’s broadband subscriber base in Russia increased by more than 7% to 2.378 million.

Russia, VEON