VimpelCom said it had delivered “strong organic EBITDA and revenue growth leading to another quarter of good cash flows,” while also noting that it “continues its strategic portfolio analysis, focused on allocating capital to those markets where the company sees the best opportunities to generate shareholder value.”
The company reported a net income of US$318 million, down 36 percent from US$500 million, on revenue of US$5.6 billion, which more than doubled from US$2.7 billion. It noted a reduction in foreign exchange gains as well as an increased income tax expense.
On a pro-forma basis, adjusted to take into account the Wind Telecom acquisition, net income fell by 29 percent to US$318 million from US$450 million, on revenue of US$5.6 billion, up 3 percent from US$5.5 billion.
Its mobile subscriber base was 209 million, up from 95 million at the end of Q1 2011 (up 12 percent from 186 million on a pro-forma basis). It said that the largest absolute contribution came from an accelerated growth in subscribers at its Africa & Asia business unit.
Subscribers numbers in Russia fell compared to the earlier sequential quarter, due to a “strategy of targeting profitable growth and resetting the overall commercial model to achieve this goal.”
VimpelCom reported revenue growth of 8 percent for its core Russian market, 8 percent for its CIS operations, 4 percent for Africa & Asia, and 3 percent for Ukraine. In contrast, its Europe and North America holdings saw revenue fall by 5 percent.
The company had an eventful quarter. It has submitted a notice of arbitration against the government of Algeria, following a fine of US$1.3 billion related to alleged foreign exchange violations, noting that it "continues to be open to finding an amicable resolution with the Algerian government that is mutually beneficial to both parties.”
It has been named as a third party in a claim brought in a Moscow Arbitration Court concerning its Russian operating unit, and investors Telenor and Weather Investments. It has been alleged that the sale of shares to Telenor by Weather violated the relevant Russian law.
VimpelCom also announced the sale of its controlling 49 percent interest in Vietnamese operator GTEL Mobile during the period.