Vimpelcom posts rise in profit for 2012

International operator group Vimpelcom, which is headquartered in Amsterdam, has posted stable earnings results for 2012. In the final quarter of the year, the group’s revenue rose three per cent year on year to reach $6bn, while net income stood at $801m. The firm posted a net loss of $381m in the same quarter of 2011.

For the full year, the operator saw its revenue grow four per cent year on year to reach $23.1bn while net income was $2.1bn; a four-fold increase on the 2011 figure.

The firm said that its objectives for 2013 until 2015 are to grow revenue and EBITDA at around a “mid-single digit CAGR”.  In addition, the operator plans to keep the ratio of net debt to EBITDA below 1:2 in 2015; and for CAPEX (excluding licenses) to remain below 15 per cent of total revenue.

Russia, historically Vimpelcom’s core market, delivered a four per cent increase in revenue year-on-year with mobile ARPU up five per cent. This was stimulated by usage and value added services growth with mobile data revenues up 37 per cent.

EBITDA in Russia increased 15 per cent, which the firm said was a result of revenue improvement and strong execution on its operational excellence programs.

CEO Jo Lunder commented on Vimpelcom’s wider portfolio: “In Italy, we have again outperformed the market, strengthening our market position in both the mobile and fixed-line segments. Excluding the impact of mobile termination rate cuts, mobile service revenues were up  year on year, with mobile internet revenues growing 37 per cent.

“In Africa and Asia, we experienced strong increases in subscribers leading to organic revenue growth of 11 per cent. We have made good progress on the transition to bundled tariff plans in Ukraine, resulting in a return to growth, while at the same time increased our subscriber numbers by five per cent.

“Finally, our CIS business continued to deliver double digit revenue and EBITDA growth. The Group EBITDA margin in 4Q12 rose to 41.1 per cent. Our 2012 results, with clear operational improvements, demonstrate our ability to deliver on our strategy and objectives. In 2013 we expect to deliver results in line with our enhanced Value Agenda objectives for 2013-2015,” Lunder concluded.


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