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VimpelCom Reports Stable Underlying Results in 3Q13

November 06, 2013. TAG: Telecommunications

Amsterdam (November 6, 2013) - VimpelCom Ltd; (“VimpelCom”, “Company” or “Group”) (NASDAQ: VIP), a leading global provider of telecommunications services, today announces financial and operating results for the quarter ended September 30, 2013.

KEY RESULTS AND DEVELOPMENTS IN 3Q13
Revenues of USD 5.7 billion; organic1 decline of 1% YoY
EBITDA of USD 2.5 billion; organic1 decline of 2% YoY
Results impacted by regulatory and governmental measures, market slowdown as well as one-off charges
EBITDA organic stable YoY excluding MTR cuts and one-off charges EBITDA margin of 43.5% Net cash from operating activities of USD 1.7 billion
Total mobile subscriber base increased 5%2 YoY to 219 million
Interim dividend 2013 of USD 791 million or USD 0.45 per share declared
Andrew Davies to start as Group CFO on November 7, 2013

JO LUNDER, CHIEF EXECUTIVE OFFICER, COMMENTS: "The third quarter results were impacted by regulatory and competitive pressures. Our underlying performance was stable and the operational improvements we are making in Russia are on track, with mobile service revenue growth of 3%. To better serve our customers, we plan further substantial investment in our mobile data networks in Russia in the final quarter of the year. In Italy, we have continued to gain mobile market share although competition remains strong. The Africa & Asia business unit delivered stable EBITDA and continuing strong subscriber growth. In Ukraine, we experienced significant pressure on our results and we are taking measures to improve our performance. The CIS business unit showed organic revenue growth of 9% and a substantial increase in the customer base. Overall, mobile data revenues again showed strong growth. Our EBITDA margin remained amongst the highest in the industry at 43.5%, and cash flows from our operating businesses were solid at USD 1.7 billion. We will remain focused on delivering value to our customers and shareholders."

The full version of this press-release you can find on the Company's website: http://www.vimpelcom.com/Global/Files/Results/2013/VimpelCom_3Q13_Earnings_Release.pdf

VimpelCom Ltd.

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%.

 
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