Vimpelcom cuts outlook as revenues fall 10% in Q1

Nieuws Mobiel Wereld 14 MAY 2014
Vimpelcom cuts outlook as revenues fall 10% in Q1
Vimpelcom lowered its full-year outlook after reporting a weak set of first-quarter results. The company now expects a low to mid single digit decline in revenue and EBITDA this year, after previously forecasting stable results. As a result, net debt will be around 2.4x EBITDA, versus an earlier target fo 2.3x. Capital expenditure is expected to remain high, at 21 percent of revenue excluding licences. 

In the first quarter, revenue fell 10 percent year-on-year to USD 5.02 billion, hurt by negative currency effects and the difficult market conditions in Ukraine. On an organic basis, revenue was down 6 percent in Russia, 7 percent in Italy and Ukraine, and 1 percent in Africa and Asia, while growing 3 percent in the CIS states. Vimpelcom said it expects market conditions to remain difficult this year in its two largest markets, Russia and Italy. 

Group EBITDA fell 11 percent to USD 2.09 billion, and net profit plunged to USD 39 million from USD 408 million a year ago. Vimpelcom increased capex 24 percent to USD 736 million in Q1, while operating cash flow fell 23 percent to USD 1.35 billion. The group's mobile customer base was still up 3 percent year-on-year to 218 million, and all the business units posted double-digit growth in data revenues. 

The company also announced that Vincenzo Nesci, currently chairman of Orascom Telecom Algeria, will succeed Ahmed Abou Doma as head of the company's Africa and Asia Business Unit. In addition, he will be appointed CEO of Global Telecom Holding from 30 June and join the Group Management Board, while remaining OTA chairman. 

Categories:

Mobiel

Companies:

Vimpelcom

Regions:

Wereld

Tags:

Voice services, Data services, Financial figures, Internet Access

Related Articles

WERELD 6 AUG 2014

Vimpelcom maintains outlook as Q2 revenues fall 11%

Vimpelcom reported second-quarter results lower, hurt by the difficult economic conditions in key markets such as Italy, Russia and Ukraine. Revenues fell 11 percent to USD 5.067 billion, and EBITDA was down 14 percent to USD 2.076 billion. On an organic basis, revenues fell 6 percent, with a 9 percent fall in Italy, Russia down 6 percent, Africa & Asia declining 4 percent and Ukraine 5 percent lower. Only the CIS region showed growth, with revenue up 4 percent year-on-year. Net profit plunged to USD 100 mi

PAKISTAN 15 MAY 2014

Mobilink revenues fall 5% in Q1

Pakistani mobile operator Mobilink generated operating revenues of PKR 26 billion in the first quarter of the year, down 5 percent year-on-year. The firm's revenues in the quarter were affected by the macro-economic slowdown, lower voice revenue  and strong competition. The company's EBITDA for the first quarter amounted to PKR 10 billion, down 11 percent from the same period in 2013.

KIRGIZIË 14 MAY 2014

Sky Mobile revenues down 5% in Q1

Mobile service revenue of the operator Sky Mobile, working under the Beeline Kyrgyzstan brand, decreased by 5 percent year-on-year to KGS 2.0 billion in the first quarter, due to strong competition and declining prices. This was partly compensated by strong growth in mobile data revenue, of 45 percent to KGS 221 million, as a result of initiatives aimed at stimulating data usage for small screens. The mobile subscriber base increased by 16 percent year-on-year to 2.605 million at the end of March, while ARP

GEORGIË 14 MAY 2014

Mobitel revenues down 2% in Q1

Mobile revenues of the mobile operator Mobitel, working under the Beeline Georgia brand, dropped by 2 percent year-on-year to GEL 30 million in Q1. ARPU declined by 16 percent to GEL 9. Despite the lack of a 3G licence, which was partly responsible for the decline in revenue, the company grew its mobile customer base by 15 percent to 1.1 million, helped by its new tariff offerings. EBITDA decreased by 8 percent to GEL 9 million, and the EBITDA margin declined by 1.7 percentage points to 26.2 percent.

KAZACHSTAN 14 MAY 2014

Kar-Tel revenues up 6% in Q1

Revenues of the mobile operator Kar-Tel, working under the Beeline Kazakhstan brand, grew by 6 percent year-on-year to KZT 30.45 billion in Q1. Mobile service revenues grew by 3 percent to KZT 26.98 billion. EBITDA increased by 9 percent to KZT 14.56 billion, and the EBITDA margin was up by 1.1 percentage points to 48.8 percent. Capital expenditure decreased by 62 percent to USD 9 million. Mobile subscribers grew by 8 percent to 9.16 million at the end of March, while ARPU declined by 4 percent to KZT 975

TADZJIKISTAN 14 MAY 2014

Takom mobile service revenue up 7% in Q1

Mobile service revenues of the operator Takom, working under the Beeline Tajikistan brand, grew by 7 percent year-on-year to USD 31 million in Q1 as a result of increased international interconnect revenues and growth in the mobile subscriber base. The latter increased by 11 percent year-on-year and 11,000 compared to the end of 2013 to 1.295 million at the end of March. Takom's mobile ARPU decreased by 5 percent to USD 8, mainly due to decreasing prices and declining international call volume. EBITDA incr

ARMENIË 14 MAY 2014

Armentel revenues, EBITDA lower in Q1

Mobile revenues of the operator Armentel, working under the Beeline Armenia brand, dropped by 1.8 percent year-on-year to AMD 5.9 billion in the first quarter. Sales were hurt by the decline in its mobile customer base to 699,000 at the end of March, a drop of 8 percent year-on-year due to strong competition. Mobile ARPU increased by 6 percent to AMD 2,589. Fixed service revenue declined by 4 percent to AMD 7.8 billion due to lower voice revenue and a 3 percent decrease in the subscriber base. The operator'

OEZBEKISTAN 14 MAY 2014

Beeline Uzbekistan revenues up 4% in Q1

Revenues of the mobile operator Beeline Uzbekistan grew 4 percent year-on-year to USD 163 million in Q1. Mobile service revenues also grew by 4 percent, to USD 161 million, while fixed service revenue dropped by 4 percent to USD 2 million. EBITDA increased by 3 percent to USD 105 million, and the EBITDA margin decreased by 0.8 percent to 64.4 percent. Capital expenditure declined by 64 percent to USD 21 million. The results were negatively affected by electricity outages in the most important regions.

OEKRAÏNE 14 MAY 2014

Kyivstar revenues fall 7% in Q1

Revenues of Ukrainian mobile operator Kyivstar declined by 7 percent year-on-year to UAH 2.942 billion in Q1. Mobile service revenue dropped by 6 percent to UAH 2.677 billion, primarily due to lower mobile voice revenue, partly offset by solid mobile data revenue growth of 15 percent. Fixed services revenue decreased by 2 percent to UAH 259 million. EBITDA fell 8 percent to UAH 1.43 billion, mainly due to lower mobile service revenue, and the EBITDA marigin declined by 0.4 percentage points, to 48.6 percen

RUSSISCHE FEDERATIE 14 MAY 2014

Beeline Russia revenues down 6% in Q1

Vimpelcom reported lower results at its Russian business unit in the first quarter, as the company executes the next phase of its transition to focus on customer excellence. Revenues were down by 6 percent to RUB 66.1 billion. Mobile service revenue declined by 3 percent to RUB 52.4 billion, hurt by a 1 percent drop in the customer base and efforts to stop unrequested services from content providers. Mobile data revenue increased by 22 percent to RUB 8.8 billion, and the mobile broadband customer base in Ru

ALGERIJE 14 MAY 2014

Djezzy sees fall in Q1 sales despite customer growth

Algerian mobile operator Djezzy's revenue decreased 2 percent to DZD 33 billion in the first quarter, compared with the first quarter of 2013, following the launch of 3G services by other operators, lower outgoing traffic and lower interconnect revenue due to lower interconnect pricing. The company's mobile customer base increased to 17.6 million at the end of March, 6 percent more than a year earlier, but ARPU declined 7 percent to DZD 628. EBITDA fell by 5 percent to DZD 19 billion, hit by higher network

ITALIË 14 MAY 2014

Wind revenues drop 7% in Q1, customer base stable

Italian operator Wind Telecomunicazioni reported first-quarter revenues down 7 percent year-on-year to EUR 1.14 billion, which the company attributed to the ongoing effects of intense price competition in the sector and last year's cuts to mobile termination rates (MTR). Excluding the tail-end impact of MTR reductions, total revenues declined by 5 percent compared to the year-earlier period. EBITDA fell 7 percent to EUR 430 million, mainly due to the decline in revenues partially offset by cost savings, but

RUSSISCHE FEDERATIE 28 APR 2014

VimpelCom appoints Akhavan, Gusev to board

Mobile operator Vimpelcom, working under the Beeline brand, has appointed Hamid Akhavan and Andrei Gusev as members of its Supervisory Board, replacing Sergei Tesliuk and Andrei Baranov, respectively.

RUSSISCHE FEDERATIE 8 APR 2014

VimpelCom completes a USD 1.8 bln revolving credit facility 

VimpelCom successfully completed a new revolving credit facility (RCF) of up to USD 1.8 billion for VimpelCom Amsterdam (VIP Amsterdam). The RCF has a three-year tenor and will replace the existing USD 500 million RCF signed in 2011. At present, 11 banks have committed to the RCF in the aggregate amount of USD 1.65 billion. The RCF contains an option to increase the amount of the facility by up to USD 150 million within 6 months from the date of the signing. The company also announced that it has successful

OEZBEKISTAN 12 MAR 2014

Vimpelcom faces investigation over Uzbekistan activities

Vimpelcom announced it faces investigations in the US and the Netherlands into its activities in Uzbekistan. The company said it received a letter from US Securities and Exchange Commission stating that it's conducting an investigation related to Vimpelcom and requesting documents. Also, the company's headquarters in Amsterdam were visited by representatives of the Dutch authorities, including the Dutch public prosecutor office, who obtained documents and informed the company that it was the focus of a crim

Just In

19 DEC 16:42

SLT-Mobitel launches 5G network in Sri Lanka

19 DEC 16:19

Dialog Axiata launches 5G network, connects 1.5 million subscribers

19 DEC 15:56

UK govt to ban AI-enabled nudification apps to protect women, girls

19 DEC 15:42

3 UK launches last-minute Christmas sale

Commentary

13:56

Video market set for slower growth ahead

11:38

Netflix buys Warner Bros to deepen content catalogue

11:11

KPN's mixed performance in Q3 raises questions for strategy day

15:26

Stock markets breaking records but what happened to Odido's IPO plans?

Background

01:04

The week in telecom: Wi-Fi bolt-ons take off to boost broadband growth, video market works on consolidation

01:39

The week in telecom: Netflix wins bidding for Warner Bros, Apple poaches new execs, Samsung debuts trifold

13:51

Proximus vs. Telenet: Proximus performs better in Q3 while Telenet uses up cash

14:16

Proximus Domestic still struggling with low margins

Complete profile

Before downloading the whitepaper, we would like to ask you to complete your profile with company and position. After confirming you will receive the white paper.