Russia Vimpelcom profit up in Q1 on more mobile users.
MOSCOW, May 30 (Reuters) - Russia's No. 2 mobile operator Vimpelcom on Thursday showed first quarter profit rising sharply beating expectations, as Muscovites flooded in to buy its services. The company posted net profit of $28.05 million on $145.06 million of revenues for the first quarter after a fourth quarter profit of $18.85 million on $134.08 million. "Our first quarter results demonstrates the further strengthening of Vimpelcom position in the Russian cellular market," Vimpelcom CEO Jo Lunder said in a statement. "Going forward, we intend to continue pursuing our policy of profitable growth combining further progress in the key Moscow market with a balanced nation-wide expansion." The company attributed financial improvements to rapid subscriber growth, saying economies of scale had kicked in to complement cost control. It added 0.55 million new users to bring its subscriber base up to 2.66 million, of whom 2.38 million were on its core Moscow network. But subscibers pitched in an average of only $19.4 per head, compared to $27 for its rival Mobile Telesystems as announced in its earning on Wednesday. Minutes of use fell sharply from the final quarter of last year to 87 minutes average per subscriber from 106.6 minutes. Analysts had expected a net profit in the neighbourhood of $20 million. Vimpelcom fell in tandem with MTS yesterday when its rival posted first quarter results below analysts' expectations. (C) Reuters Limited 2002.
Altimo, a leading private equity group, operating on some of the world’s most desirable and potentially lucrative mobile telecommunications markets, was created in 2005 from Alfa Telecom, which itself was established in 2004 to hold the telecoms investments of the Alfa Group Consortium (VimpelCom Ltd. and Turkcell Iletisim Hizmetleri A.S.). Those assets are in Russia, the CIS and other promising emerging markets.
VimpelCom Ltd. provides voice and data services through a range of wireless, fixed and broadband technologies. VimpelCom Ltd. is headquartered in Amsterdam and has operations in Russia, Ukraine, Kazakhstan, Uzbekistan, Tajikistan, Georgia, Armenia, Kyrgyzstan, Laos, Algeria, Bangladesh, Canada, Italy, Pakistan, Burundi, Zimbabwe and Central African Republic covering territory with a total population of about 753 million with 214 mln subscribers. VimpelCom Ltd. operating companies provide services under the “Beeline”, “Kyivstar”, “Djuice”, “Wind”, “Infostrada”, “Mobilink”, “Leo”, “Banglalink”, “Telecel” and “Djezzy” brands. VimpelCom Ltd. is traded on NASDAQ under the symbol “VIP”. As of 18 April 2013, Altimo owned 47.85% of the voting shares of VimpelCom Ltd., economic interest is 56.2%.