Russia and CIS operator VimpelCom reported second-quarter revenues up 23.1 percent year-on-year to USD 2.64 billion, helped by its merger with Ukraine's Kyivstar. Adjusted OIBDA rose 16 percent to USD 1.26 billion, while net profit fell 52 percent to USD 334.7 million. Kyivstar was acquired from 21 April. On a pro forma basis, the company's revenues were up 8.9 percent and OIBDA rose 0.5 percent from a year earlier, while capex increased 89 percent to USD 445.3 million and operating cash flow was up 9 percent to USD 1.03 billion. On an organic basis, VimpelCom said it had a strong quarter, with Russia reporting record revenues in rubles and other markets benefiting from the economic recovery.
In Russia, Vimpelcom posted mobile revenues up 5.3 percent from a year earlier to RUB 51.83 billion, while OIBDA was down 2.3 percent to RUB 26.44 billion. The subscriber base was down 0.7 percent from March to 50.912 million, although mobile broadband subscriptions continued to increase, up 11.3 percent from the previous quarter to 1.300 million. ARPU increased 2.2 percent year-on-year and 7.3 percent from Q1 to RUB 329.9, driven by increased usage and stable prices. Fixed-line revenues were stable year-on-year at RUB 9.91 billion, as growth in the residential market offset continued weakness in the business segment. Fixed-line OIBDA was down 21 percent to RUB 2.68 billion. The operator had 1.199 million fixed broadband subscribers at end-June, up from 896,000 a year earlier and 1.167 million in March.
In Ukraine, Vimpelcom said it saw signs of economic improvement, with the cut in termination rates offset by a more stable competitive environment. The company focused marketing on the price-sensitive segment to maintain the active subscriber base. On a pro forma basis, mobile revenues fell 1.9 percent to UAH 2.93 billion, and OIBDA dropped 2.7 percent to UAH 1.61 billion. The subscriber base rose 0.7 percent from March to 24.059 million, but was down 0.4 percent from a year earlier. Mobile ARPU of UAH 39.7 was up 8.8 percent from Q1 and down 1.2 percent year-on-year. The fixed-line operations generated OIBDA of UAH 49 million on revenues of UAH 143 million. The company had 164,000 broadband subscribers at the end of June, more than triple the year-earlier figure.
