Vimpelcom posts Q4 net loss, revenues up 4%

News Wireless Global 13 MAR 2012
Vimpelcom posts Q4 net loss, revenues up 4%
Vimpelcom reported fourth-quarter revenues up 4 percent from a year earlier to USD 5.88 billion, while EBITDA fell 3 percent to USD 2.20 billion. Figures are pro forma for its takeover of Orascom Telecom's assets. Organic sales growth was strongest in the CIS at 16 percent, while Russia rose 9 percent, Ukraine was up 4 percent and Africa & Asia improved 5 percent. Only the Wind activities in Italy and Canda showed lower revenues, down 1 percent. The company finished the year with 205 million mobile customers, 13 percent more than in 2010. On a reported basis, the company posted a net loss of USD 386 million, versus a profit of USD 461 million a year earlier, due to an impairment on the southeast Asia activities and other charges for the takeover. Over the full year 2011, capex rose to USD 6.81 billion, including USD 1.8 billion for licences in Italy and Bangladesh, and operating cash flow improved 60 percent to USD 5.88 billion. Vimpelcom announced a final dividend of USD 0.35 per share and repeated a target to pay at least USD 0.80 a year through 2014. For the period 2012-2014, Vimpelcom forecast a CAGR in the mid single digits for revenue and EBITDA. By the end of the period, net debt should be less than two times EBITDA, versus 2.6 at end-2011, and capex will fall to below 15 percent of revenues.

Categories:

Mobile

Companies:

Wind,  Orascom Telecom,  Vimpelcom

Regions:

Global

Tags:

Voice services, Financial figures, Internet Access

Related Articles

ITALY 6 MAR 2014

Wind revenues drop 10% in Q4, EBITDA margin improves

The fourth-quarter revenues of Italian operator Wind Telecomunicazioni were down 10 percent year-on-year to EUR 1.24 billion, which the company attributed to intense competition in the sector and the lingering effects of cuts to mobile termination rates (MTR). Excluding the MTR impact, revenues declined 5 percent year-on-year. EBITDA fell 3 percent to EUR 500 million, mainly due to cost saving measures, but the operator's EBITDA margin improved 2.9 percent to 40.4 percent. Fourth-quarter CAPEX dropped to EU

RUSSIAN FEDERATION 3 MAY 2012

Beeline to reduce capex this yr

Russian operator Vimpelcom, working under the Beeline brand, plans to spend 19 percent of revenues on capital expenditure this year, reports RIA Novosti. The figure was 31.4 percent of revenues in 2011. The operator plans to focus its capital expenditure on the upgrade of its existing network, as well as on the expansion of the 3G network and deployment of the LTE network. Capital expenditure at parent company Vimpelcom Ltd totaled USD 6.35 billion in 2011, of which USD 2 billion was in Russia.

GLOBAL 14 MAR 2012

Vimpelcom in talks for infrastructure sharing

Vimpelcom is in talks for infrastructure sharing or outsourcing in a number of countries, CEO Jo Lunder told Bloomberg. As part of plans to reduce capex in the next 2-3 years, Lunder is looking at infrastructure sharing in Russia, Pakistan and Italy, he said, noting that discussions are "ongoing". Vimpelcom targets reducing capex to 15 percent of revenues by 2014, from 21 percent last year. The CEO also said he expects Russia to award LTE licences in the first half of this year, and VimpelCom has a "good ch

KAZAKHSTAN 13 MAR 2012

Beeline Kazakhstan adds 1.5 mln customers in 2011

Mobile operator Beeline Kazakhstan finished 2011 with a total 8.409 million subscribers, up by 157,000 from the third quarter and 1.5 million more than a year earlier. Revenues in the fourth quarter improved 11 percent year-on-year to KZT 31.57 billion, as the strong subscriber growth was offset by price pressure due to regulations and increased competition. EBITDA fell 1 percent to KZT 13.75 billion, with increased handset sales reducing the margin 5.2 percent points to 43.6 percent. Beeline reported over

UKRAINE 13 MAR 2012

Vimpelcom Ukraine sales up 4% in Q4, EBITDA falls 3%

Vimpelcom reported fourth-quarter revenues in Ukraine up 4 percent to UAH 3.33 billion, driven by strong growth at its fixed-line activities. EBITDA fell 3 percent to UAH 1.67 billion, hurt by extra spending on advertising and seasonal promotions. The operator, which uses the names Beeline and Kyivstar in Ukraine, said the margin was further impacted by a growing share of non-mobile business and higher SG&A from increased technical costs due to inflation. The mobile business posted revenues up 2 percent to

ALGERIA 13 MAR 2012

Djezzy raises revenues 3%, subscribers 10% in Q4 2011

Algerian mobile operator Djezzy reported revenues up 3 percent to DZD 33.9 billion in the fourth quarter of 2011, compared to the year-earlier period, as its customer base grew by 10 percent 16.6 million. The operator reduced its churn rate to 5.5 percent, compared to 5.7 percent in the fourth quarter of 2010. ARPU fell by 7 percent to DZD 673 for the quarter due to penetration of lower income segments, in addition to an accounting provision concerning a loyalty programme. Ebitda grew by 18 percent to DZD 2

RUSSIAN FEDERATION 13 MAR 2012

Beeline Russia grows revenues 10%, EBITDA down 6%

Vimpelcom's Russia unit Beeline reported revenues for the fourth quarter of RUB 71.02 billion, up 10 percent from a year earlier on solid subscriber growth. EBITDA fell 6 percent to RUB 26.36 billion, hurt by investments in sales and marketing to drive customer growth. Beeline said it's on track to realise its RUB 5 billion in cost savings this year, and is pursuing other initiatives to lower costs and raise efficiency, such as infrastructure sharing and a new dealer structure and retail strategy. The compa

ITALY 13 MAR 2012

Wind Q4 revenues down 1%, EBITDA stable

Italian operator Wind reported fourth-quarter revenues down 1 percent from a year earlier to EUR 1.424 billion, while EBITDA was stable at EUR 533 million. Wind's parent company Vimpelcom said the drop in revenues due to competitive pressure and termination rate cuts was offset by cost-reduction efforts. Mobile service revenues fell 2.3 percent, but would have been up 2.5 percent excluding the MTR cut, while fixed-line service revenue dropped 0.7 percent. Both mobile and fixed-line EBITDA were stable year-o

RUSSIAN FEDERATION 7 MAR 2012

Beeline cuts roaming rates by introducing new service

Russian mobile operator Vimpelcom, working under the Beeline brand, has launched its new 'Multipass' service. Postpaid and prepaid subscribers can benefit from a significant decrease in roaming rates when using the service in CIS countries, EU countries, as well as in Vietnam, Cambodia and Laos. Multipass reduces mobile internet roaming rates by 25 times in European countries and in South-East Asia. The daily subscription rate for the service is RUB 10.

RUSSIAN FEDERATION 6 MAR 2012

Beeline outsources network management to NSN

Russian mobile operator Vimpelcom, working under the Beeline brand, has outsourced the management of its network to Nokia Siemens Networks (NSN) in Central Russia, reports Vedomosti. The project covers 16 regional branches of the operator, and the agreement entered into force in mid-February. Outsourcing is planned across the country by mid-2013.

RUSSIAN FEDERATION 18 FEB 2012

Vimpelcom completes Orascom spin-off

Russian operator Vimpelcom has completed the spin-off of certain assets of Orascom Telecom to Weather Investments II. The principal spin-off assets include Orascom Telecom's investments in ECMS and Mobinil in Egypt and Koryolink in North Korea. The completion of the spin-off of these assets fulfills VimpelCom's spin-off obligations in connection with its acquisition of Wind Telecom from Weather II.

GLOBAL 15 FEB 2012

Telenor buys Weather shares to boost stake in Vimpelcom

Telenor has acquired additional shares in Vimpelcom, settling its dispute over dilution of its stake in the Russian operator after its acquisition of the former Orascom Telecom assets. Weather Investments, the holding company of Egyptian businessman Naguib Sawiris, sold Telenor 234 million VimpelCom preferred shares for USD 374.4 million, increasing Telenor's voting share in VimpelCom to 36.36 percent. Telenor's voting share in Vimpelcom had diluted to 25.0 percent after Sawiris sold the Orascom assets to V

RUSSIAN FEDERATION 8 FEB 2012

Vimpelcom to sell digital TV operator

Russian national competition regulator FAS has cleared the company Tiverton Ventures, registered in the Virgin Islands, to purchase Russian digital TV operator Kolangon-Optim. The operator provides services under the DVB-T standard. Russian operator Vimpelcom contols 64 percent in Kolangon-Optim through its subsidiary Fortland. The stake was acquired with the acquisition of Golden Telecom.

RUSSIAN FEDERATION 1 FEB 2012

Vimpelcom merger with regional operators approved

Telecommunications holding company Vimpelcom Ltd has approved the merger of Russian mobile operator Vimpelcom with seven regional operators, reports RIA Novosti. Beeline will merge with the Barnaul-based Altaygrif, Nizhniy-Novgorod-based Business Communications Agency, Informtechnology of Cheboksary, Belgorod Digital Backbones, SeverTransCom of Yaroslavl, Murmansk-based Polarcom and St Petersburg-based Eltel.

Just In

16:42

SLT-Mobitel launches 5G network in Sri Lanka

16:19

Dialog Axiata launches 5G network, connects 1.5 million subscribers

15:56

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

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.