Vimpelcom Q2 revenues down 11% y-o-y to USD5.07bn

6 Aug 2014

Amsterdam-based international telecoms group Vimpelcom Ltd has reported operating revenues of USD5.067 billion for the three months ended 30 June 2014, down 11% from USD5.718 one year earlier. The lion’s share of sales were generated by the company’s flagship Russian unit, which contributed USD1.964 billion of the total, albeit down 16% on an annual basis. Group EBITDA for 2Q14 dropped 14% y-o-y to USD2.076 billion, while net income slumped 83% from USD573 million in the second quarter of 2013. CAPEX for the three months under review jumped 29% to USD1.017 billion. In operational terms, Vimpelcom saw its consolidated mobile user base grow 2% from 215.4 million to 220.6 million.

Vimpelcom CEO Jo Lunder commented: ‘As previously indicated, we expect 2014 to be a challenging year for our Group. The results for the second quarter were impacted by a weaker operational performance in some markets, but also by the macro-economic situation in Russia and Ukraine. In Italy we continue to outperform competitors in a weak market. We are seeing improved financial performance in Kazakhstan and Bangladesh, with year-on-year service revenue growing by 8% in both markets. The improvements are due both to the investments we are making in our networks and to our focus on delivering the best customer experience.’

Russia, VEON