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VimpelCom Returns to Profit after Loss in Q1

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Russia's VimpelCom has reported that its second quarter revenues rose by 11.9% to RUB 69 billion (USD2.2 billion) from RUB 61.7 billion a year ago. Net profit was RUB 22.6 billion (USD718 million), compared to RUB 11.1 billion a year ago and a RUB 8.5 billion loss in 1Q09.

Mobile subscribers increased by 1.0 million versus 1Q09, reaching 63.7 million.

Commenting on the performance of the Company, Boris Nemsic, Chief Executive Officer of VimpelCom, said, "We are pleased with our performance during the second quarter. We continue to demonstrate strong results with revenues of 69.0 billion rubles and OIBDA of 35.0 billion rubles. In spite of the economic crisis we achieved 12% year-on-year growth in revenue and 21% year-on-year growth in OIBDA.

"We increased the number of active mobile subscribers to 63.7 million, almost 19% more than we had last year. The residential broadband business grew in line with our expectations and we now serve 1.7 million fixed and mobile broadband subscribers compared to 0.6 million customers a year ago.

"I am especially proud to report that revenue growth coupled with successful business integration and ongoing cost control yielded a consolidated fixed and mobile OIBDA margin of 50.6%. The consolidated OIBDA margin is 2.5 percentage points above a strong first quarter figure and represents a 3.8 percentage point increase compared to the results of the second quarter of 2008.

In the mobile segment revenues increased by 8.2% quarter-on-quarter. MOU was up by 4.3% compared with the previous quarter, reflecting a combination of the normal seasonal increase and slight downward pressure from the macroeconomic environment. The increase in usage, coupled with stable pricing, led to an increase in ARPU of 5.2%.

Fixed-line revenues decreased by 2.3% quarter-on-quarter, and now represent 17.2% of the total revenues in Russia.

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Tags: vimpelcom  broadband  Russia