VimpelCom Profit plunges 52% – Q2’2010
Russian telecommunications firm Vimpelcom has accounted its second-quarter net profit fell by 52.5% to US$334.7 million, though its Revenue mounted 23% to US$2.64 billion. The number of mobile subscriptions was up to 89.4 million while broadband subscriptions grew to 2.7 million.
According to VimpelCom’s Chief Executive Officer, Alexander Izosimov, Revenues increased substantially as a result of both Kyivstar consolidation and strong organic growth across all key segments of the business. The mobile segment in Russia delivered its highest ever quarterly ruble revenues. Quarterly revenue and margin dynamics in Ukraine improved substantially on a like-for-like basis. In Kazakhstan, company’s largest market in the CIS segment, the strong quarterly results also reflect the macroeconomic recovery.
In Russia, the company saw an increase in usage, tied with stable pricing, led to a quarterly increase in ARPU of 7.2%. The company also considerably stepped up investments as the Russian telecom market resumed its growth.
In Ukraine, the company saw improvement in the macroeconomic situation. During the second quarter, VimpelCom observed less competitive pricing pressure in the mobile segment of the Ukrainian telecom market, which partly helped to offset the negative effect from declining mobile termination rates.
In Kazakhstan, over 14% revenue growth in local currency both year-on-year and quarter-on-quarter, reflected signs of economic recovery after more than two years of macroeconomic downturn.
