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Vimpelcom Posts Q4 2013 & Full 2013 Financials
March 9, 2014 16:28

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Q4 2013 results, as given by an official report on the company’s website:
·         Revenue of USD 5.6 billion; organic decline of 6% YoY
·         EBITDA of USD 2.4 billion; organic decline of 2% YoY
·         EBITDA margin grew 1.6 percentage points YoY to a strong 42.7%
·         Net loss of USD 2.7 billion reflecting non-cash impairments
·         Total mobile customer base increased 4% YoY to 220 million.
“In Russia, the Company experienced a slowdown in revenue and ARPU. Revenue was down 4% YoY to RUB 70.7 billion, while mobile service revenue declined 2% YoY to RUB 56.2 billion. Mobile data revenue increased 25% YoY to RUB 8.8 billion. Mobile broadband customers in Russia increased 18% YoY to 3.1 million. EBITDA declined organically 6% YoY to RUB 28.5 billion due to the revenue decrease and the costs related to investments in the mobile data network and in owned monobrand stores,” read the statement.

Full 2013 results:
·         Stable underlying Revenue and EBITDA, excluding MTR cuts and one-off charges
·         Revenue of USD 22.5 billion; organic decline of 2% YoY
·         EBITDA of USD 9.6 billion; organic decline of 1% YoY
·         Strong EBITDA margin of 42.7%, up 0.3 percentage points YoY
·         Operating cash flow (EBITDA less CAPEX) declined 5% YoY to USD 5.4 billion
·         Net loss of USD 1.4 billion due to non-cash impairments of USD 3.0 billion mainly related to Ukraine and Canada.
“In Russia, revenue decreased 1% to USD 9.1 billion and increased 2% to RUB 290 billion. In Italy, revenue decreased 5% to USD 6.6 billion and decreased 8% to EUR 5.0 billion as a result of the sharp MTR cuts and severe price competition, especially during the summer campaigns. Excluding the MTR effect, total operating revenue declined 1% in local currency,” according to the statement.
Overall, the Russian business unit has entered its next phase of transition in a multi-faceted process, involving customer excellence, data network parity and distribution, that is expected to run over the coming three years.
In addition, Beeline continued its mobile data network improvement program in 4Q13, bringing the quality of its network to parity with competitors in the key regions. In Russia, the number of 3G base stations increased more than 40% YoY while in Moscow the number grew 190%.
Approximately 80% to 90% of base stations are now connected via IP in the key regions, while for Moscow it is 99%. All of the IP-connected 3G base stations are upgraded with HSPA+ technology, which increases customer throughput to 21 Mbps. In Moscow, the Company began the activation of dual carrier HSPA+ technology, which increases customer throughput to 42 Mbps. Beeline launched 4G/LTE in 6 regions and Moscow Oblast in 2013 and will accelerate the 4G/LTE roll out in 2014. The Company offers dual bands of 4G/LTE in Moscow (2,600 MHz and 800 MHz) and these two frequency bands support the capital efficiency objective through more efficient investment.
On January 28, 2014 the Company announced a new dividend policy aiming to pay 3.5 USD cents per share per annum until the target level of less than 2.0x Net Debt to EBITDA has been achieved. The main reason for the dividend reduction is the need to invest in high-speed networks to drive future growth from mobile data revenue, while deleveraging to our target ratio. The Board also decided not to pay a final 2013 dividend.

VimpelCom switched the listing of its ADSs to the NASDAQ Global Stock Market from the NYSE on September 10 and achieved another major milestone after it was included in the NASDAQ-100® Index on October 29, 2013.  

Author: Mikhail Vesely

Tags: VimpelCom Russian mobile networks Russian mobile operators   

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