Vimpelcom 1Q15 revenues slump 30%; bottom line improves

13 May 2015

Amsterdam-based international telecoms group Vimpelcom Ltd has announced revenues of USD3.515 billion for the three months ended 31 March 2015, down 30% from USD5.024 billion one year earlier. The weaker top-line figure was impacted by ‘severe adverse currency movements’, with only Banglalink in Bangladesh posting an improved service revenue on an annualised basis. Consolidated EBITDA for 1Q15 dropped 33% year-on-year, from USD2.088 billion to USD1.396 billion, while net income increased from USD38 million to USD184 million. CAPEX for 1Q15 (excluding licences) decreased 44% y-o-y to USD407 million, chiefly as a result of the depreciation of the ruble (RUB), euro (EUR) and hryvnia (UAH) against the dollar (USD). In operational terms, Vimpelcom reported a consolidated mobile subscriber base of 218.1 million as at 31 March 2015, up 2% from 213.3 million one year earlier.

New CEO Jean-Yves Charlier commented: ‘Our reported revenue and EBITDA continue to be impacted by severe adverse currency movements. However, the first quarter results are in line with our expectations and most of our businesses show operational performance at par with or better than the markets we operate in … During the quarter, we have successfully closed the [Djezzy stake sale] transaction in Algeria, completed the sale of our towers in Italy, acquired a 3G licence in Ukraine and launched 4G LTE services in Georgia. Our customer base grew by 2% and we have made further progress in improving our debt structure. Across the Group, data revenue continues to grow in double digits, and we confirm our guidance for 2015. As the recently appointed Group CEO, I look forward to updating the market on our strategy in August.’

Russia, VEON