QT-2 profit up by 3.4%

VimpelCom’s profit rose by 3.4 percent, reaching RUR 22.6 billion in the second quarter of the year compared to the results from the same period in 2008. The revenue from sales increased nearly 12 percent to RUR 69 billion. The company’s OIBDA indicator rose by a whole 21 percentage points leveling off at almost RUR 35 billion. The margin for the OIBDA figure, fixed at 50.6 percent, was up by more than 4 percent from quarter II of 2008.

The company’s overall profit increased by almost a half to USD 702 million. These positive developments took place despite the 18 percent decline in sales revenue. The sales figure is now USD 2.143 billion.

Investment companies have predicted results that would have been somewhat less impressive. According to a series of analysts, the company’s net revenues should have come to USD 2.14 billion; profits should not have exceeded USD 665 million; and the margin of OIBDA should not have been more than 49 percent.

While the profit increased by nearly 28 percent, reaching RUR 22.25 billion, it actually went down by about 6 percent as a result of the differences in dollar exchange rates.

The company’s revenues generated by mobile services increased by 8 percent to RUR 58 billion. Land-line services accounted for RUR 14.5 billion in the company’s revenue. This figure reflected a 2.3 percent decrease in the amount of cash generated from fixed-line services.

The company’s capital expenditures were reduced by nearly 70 percent. Capital outlays equaled RUR 5 billion (or USD 156 million) during the second quarter.

The debt of VimpelCom was USD 7.9 billion as of the last day of June. At the start of the year, the amount of total debt was nearly half a billion dollars higher. The figure for net debt was USD 6.325 billion in the middle of the summer, more than a billion dollars lower than the debt figure of USD 7.528 at the start of the year. In the current year, VimpelCom will assume almost USD 2 billion in debt. The company still expects to pay out USD 538 million to bring down its liabilities. Payments of USD 249 million were anticipated in the third quarter, and payments of USD 289 million in the fourth.   

VimpelCom’s debt accounts for 17 percent of the company’s total liabilities if it is denominated in Russian roubles. In euros, the debt constitutes only 10 percent of the liabilities.

The company boosted the revenues produced by its Russian operations by a whole 12 percent. Now, the revenue figure for Russia is RUR 59 billion. Subscribers to VimpelCom’s mobile services now number more than 49 971 000 people. The number of company’s high-speed internet customers exceeds 1 659 000 people.

VimpelCom’s activities in other countries of the C.I.S. generated net revenues of RUR 10.7 billion, reflecting a 16-percent increase. The OIBDA from those operations grew by 26.3 percent to nearly RUR 5 billion. The OIBDA margin increased from 42 percent to 46 percent.

VimpelCom is the second biggest provider of mobile phone services in Russia and the countries of the C.I.S. The company operates in Russia, Kazakhstan, Ukraine, Armenia, Uzbekistan, Tajikistan, Georgia, Cambodia, and Vietnam.

Alfa-Group owns 44 percent of the voting stock of VimpelCom, and Telenor has 29.9% of voting shares. Alfa has contributed 37 percent of charter capital, while Telenor 33.6 percent.

Almost a quarter of the shares of VimpelCom’s stock that remain undivided between Alfa and Telenor is traded on NYSE.

Alfa-Group owns 44 percent of the voting stock of VimpelCom, and Telenor has 29.9 percent of voting shares. Alfa has contributed 37 percent of charter capital, while Telenor 33.6 percent.

Almost a quarter of the shares of VimpelCom’s stock that remain undivided between Alfa and Telenor is traded on NYSE.