Vimpelcom FY14 revenues slump 12.9% to USD19.6bn; hit hard by forex movements

25 Feb 2015

Amsterdam-based international telecoms group Vimpelcom Ltd has reported total revenues of USD19.627 billion for the twelve months ended 31 December 2014, down 12.9% from USD22.546 billion one year earlier. The company has attributed its weaker top-line to foreign currency movements, noting that the Russian ruble and the Ukrainian hryvnia depreciated against the US dollar by 72% and 97%, respectively during 2014. However, other factors cited by the management team include: the impact of operational performance and macro-economic developments in Russia, Ukraine and Pakistan; the rolling effect from the 2013 price competition in Italy; and the delayed 3G launch in Algeria. EBITDA for FY14 dropped 3.5% to USD9.619 billion, while Vimpelcom reported a net loss of USD691 million for the year under review, representing an improvement on the USD2.625 billion deficit recorded in 2013.

In operational terms, the group’s consolidated mobile subscriber base increased 2.2% year-on-year from 216.9 million at 31 December 2013, to 221.6 million a year later. The biggest twelve-month improvement was observed in Bangladesh, which saw its user numbers jump 7% to 30.8 million, while Beeline Russia remains the group’s largest unit by subscribers, with 57.2 million customers at year-end, a modest 1% increase y-o-y.

Russia, VEON