Add to favorite
 
123
Subscribe to our Newsletters Subscribe to our Newsletters Get Daily Updates RSS
russian visa


Vympelcom 'Stronger Than a Year Ago'
November 16, 2014 11:52


Photo Credit: http://www.sostav.ru
According to Jo Lunder, Chief Executive Officer, year-on-year revenue and EBITDA performance was impacted by macro-economic challenges, foreign currency movements and our operational performance in some markets.
 
“We have continued to execute on our strategy to invest in high speed data networks and we are now starting to see the benefits of this investment, both in network performance and in customer satisfaction. The quarter-on-quarter results for 3Q14 show organic growth in revenue of 3% and EBITDA of 9% over 2Q14, together with an improvement in the EBITDA margin to 42.9%. Mobile data revenue growth across the Group remains strong at 21% year-on-year. Our transformation programs in Russia, Ukraine and Pakistan are on track and those in both Bangladesh and Kazakhstan have delivered strong results,” he commented.
 
“Italy remains a weak market but we see an improving trend, with Wind delivering yet another solid set of results. We are on track to close the transaction in Algeria by the end of 2014, which with the refinancing of Wind Italy’s debt is expected to yield total annualized interest savings of approximately USD 0.7 billion. Our cash flows remain robust and with an improved debt maturity schedule with no major refinancing obligations until 2020 and our strong liquidity position, VimpelCom is well funded. We are today confirming our targets for 2014,” Lunder added.
 
KEY RESULTS AND DEVELOPMENTS
·        Improvements in revenue, EBITDA, EBITDA margin and customers QoQ
·        Revenue declined organically1
·        3% YoY to USD 5.1 billion
·        Strong mobile data revenue growth of 21% YoY driven by increased demand for mobile data services
·        EBITDA2
·        declined organically 4% YoY to USD 2.2 billion, with strong EBITDA margin of 42.9%
·        Mobile customer base3
·        increased 5 million YoY to 223.4 million
·        Net income declined due to one-off costs related to recent refinancing of WIND and unfavorable FOREX
·        Resolution in Algeria is on track for closing by end of 2014 which, with the WIND refinancing, will yield total annual
·        interest savings of ~USD 0.7 billion
·        Strong liquidity, no major debt refinancing obligation until 2020 and solid cash flow generation, makes VimpelCom well
·        funded
·        2014 targets confirmed
·
Year to date, the Company has financed a total of ~USD 18.6 billion in debt, lowering annual interest costs and substantially improving the Company’s debt maturityschedule, and strengthening its liquidity position. No major debt refinancing obligation until 2020, strong
liquidity and a solid cash flow generation, makes VimpelCom well funded. In July, VimpelCom completed the second step of WIND’s refinancing. Together with the first step in April, the total
refinancing will result in approximately USD 0.4 billion in annual interest savings, improved capital structure, and enhanced cash flow, all of which is expected to facilitate a deleveraging trajectory.
The Company expects the previously announced Algeria transaction will close by the end of 2014. All proceeds will be used by GTH to pay down the outstanding shareholder loans provided by VimpelCom to GTH. VimpelCom intends to use the total proceeds to repay existing debt, with estimated annual interest savings of approximately USD 0.3 billion. The Company continued to streamline its portfolio with the sale of its interest in Wind Canada for approximately USD 122 million (CAD 135 million) in September 2014 and the sale of its assets in Burundi and Central African Republic for USD 65 million in October 2014.
 
VimpelCom confirms its annual targets for 2014:
·        Revenue decline of low to mid-single digit YoY;
·        EBITDA decline of low to mid-single digit YoY;
·        Net debt to EBITDA of approximately 2.4x; and
·        CAPEX (excluding licenses) to revenue of

·        approximately 21%. 




Author: Mikhail Vesely

Tags: Russian companies     

Next Previous

You might also find interesting:

Roskomnadzor Banned IP Addresses of Microsoft Cloud Servers Top 3 Videos From Russia The Most Profitable Russian Franchises - 2019 Russia and Egypt Telecom Companies Agree to $6.6 bln Merger Data Processing And Storage Centre Will Be Launched In 2017









Comment on our site


RSS   twitter      submit


Ïàðòåð


TAGS:
Krasnodar  Eurasian Economic Space  VTB  Moscow  Gazprom Neft  Yury Solomin  Russian scientists  Manors of Moscow  Yamalo-Nenets Autonomous Area  Russian Actresses  Chebarkul Lake  Russian stop motion clay animation  human rights  Russian business  Urals  Russia international  Russian social nets  Bolshoi Theatre  Russian science  Old Moscow  Russian tourism  Arkhangelsk  Kirov  Russian Monuments  Ecocenter  Kursk Region  Russian gas  Republic of North Ossetia  Sochi 2014  buy Russian dress  Game of Thrones  Optina Pustyn  Rasul Gamzatov  Russian economy  airport transfer in Russia  Tomsk region  Russian Cinema  Mercedes-Benz Fashion Week Russia  St. Petersburg  Russian Poets  Russian human rights movement  Tula Region  Artificial Heart  Tragedy  Alexey Navalny  Pussy Riot case  Exhibitions in Moscow  Khazar fortress  New Films  TPS Avia  


Travel Blogs
Top Traveling Sites