VimpelCom results blighted by mobile termination rates and foreign exchange effects

VimpelCom has reported what it described as a "solid operational performance" for the second quarter of this year.

The company posted a one per cent rise in revenues to US$5.7 billion. VimpelCom’s revenues would have grown by four per cent excluding the impacts of mobile termination rate cuts and currency losses.

The customer base rose faster, by five per cent to 215 million, boosted by the closure of the MTS network in Uzbekistan, even though it reduced its Algerian customer base by 1.4 million following an audit.

Net profit rose by 17 per cent to US$573 million.

EBITDA decreased two per cent year-on-year, reflecting the negative impact of unfavourable currency movements, the 72 per cent reduction of mobile termination rates in Italy, the VoIP effect in Bangladesh and certain one-off charges of approximately US$43 million, relating to a settlement, restructuring charges, a fine in Pakistan and M&A related costs. Underlying EBITDA growth, excluding these effects, would have been three per cent year-on-year.

Capex totalled US$791 million in Q213, with further roll out of the mobile networks in Russia, Bangladesh and CIS and continued roll out of HSPA+ and in backbone capacity to support growth in data in Italy.

Net debt decreased slightly to US$ 22.6 billion at the end of the quarter.