Vimpelcom posts FY13 loss of USD1.4bn following impairment charges in Ukraine, Canada

6 Mar 2014

Amsterdam-based international telecoms group Vimpelcom Ltd has reported operating revenues of USD22.548 billion for the twelve months ended 31 December 2013, down 2% from USD23.061 billion one year earlier. EBITDA for FY13 dropped 3% to USD9.619 billion, while Vimpelcom reported a net loss of USD1.424 billion for the year under review. The telco notes that the loss was due to non-cash impairment charges taken on its assets in Ukraine and Canada. Meanwhile, CAPEX for 2013 increased 3% to USD4.233 billion.

Vimpelcom’s ‘Russia’ business unit weighed in with the lion’s share of revenue in 2013, reporting earnings of USD9.109 billion, down 1% year-on-year. Elsewhere, the firm’s ‘Italy’ unit posted revenues of USD6.618 billion, down 5%, while ‘Africa & Asia’ sales shrank 6% to USD3.502 billion. Revenues in ‘Ukraine’ dropped 4% to USD1.611 billion, with the ‘CIS’ division the only Vimpelcom unit to post an improved top-line figure: USD1.948 billion (+11%).

In operational terms, Vimpelcom’s consolidated mobile subscriber base increased 4% year-on-year from 211.1 million in 2012 to 219.6 million by 31 December 2013. The biggest y-o-y improvement was observed in Bangladesh, which saw its user numbers jump 11% to 28.8 million, while Beeline Russia remains the group’s largest unit by subscribers, with 56.5 million customers at year-end.

Canada, Russia, Ukraine, Beeline (Russia), Freedom Mobile, Kyivstar, VEON