VimpelCom Q2 revenues slide 16% in USD terms

4 Aug 2016

Amsterdam-based multinational telecoms group VimpelCom has announced its results for the quarter ended 30 June 2016, in which group revenue in local currency terms was flat, but in reported currency it dropped 16% year-on-year to USD2.156 billion, including mobile data revenue which climbed 2% to USD334 million (up 25.5% in local currencies). Reported EBITDA at the Russian-backed group plunged 26% to USD795 million in Q2 2016, although profit attributable to shareholders grew 29% to USD138 million. Total mobile customers (excluding held-for-sale Italian operations) reached 194.1 million at 30 June 2016, up from 192.0 million three months earlier, whilst fixed broadband (excluding Italy) connections dropped from 3.4 million at 31 March to 3.2 million in the second quarter.

CEO Jean-Yves Charlier said: ‘VimpelCom’s financial performance is in line with expectations for the first half of the year in spite of weaker service revenue trends in the second quarter…We saw particularly solid performances in Pakistan and Ukraine and mobile data revenue growth was also strong…reflecting our strategic focus to transform our business from traditional voice and messaging to data and digital services…Reported results however continue to be negatively impacted by adverse foreign exchange movements, although this effect is moderating.’ He added that VimpelCom remains confident in securing approval from the European Commission for its proposed joint venture in Italy, to merge Wind and 3 Italia, by the beginning of September 2016.

Russia, VEON