Russian giant records net loss despite 4% organic revenue growth
March 13, 2012
AMSTERDAM -- “VimpelCom Ltd” (“VimpelCom”, “Company” or “Group”) (NYSE: VIP), a leading global provider of telecommunications services, today announced operating and financial results for the quarter ended December 31, 2011.
KEY RESULTS AND DEVELOPMENTS IN 2011
Total mobile subscriber base increased 13% YoY to 205 million
Organic revenue growth of 5% YoY; revenues of USD 5.9 billion
EBITDA, at constant FX, stable YoY at USD 2.2 billion
Net Loss attributable to VimpelCom of USD 386 million, impacted by USD 437 million of non-cash items, related to Purchase Price Allocation and Impairments
Net Cash from Operating Activities of USD 1.8 billion
Organic revenue growth of 4% YoY; FY11 revenues of USD 23.5 billion
EBITDA, at constant FX, stable YoY at USD 9.4 billion
Actual Net Income attributable to VimpelCom of USD 488 million, impacted by significant non-cash items
Final dividend announced of USD 0.35, bringing total dividend for 2011 to USD 0.80 per common share (ADS) outstanding
Jo Lunder, CEO, comments: “VimpelCom has delivered strong operational performance across all business units in the fourth quarter of 2011, driving organic revenue growth of 5%, stable EBITDA and strong cash flows of USD 1.8 billion in the period. The final dividend payment of USD 0.35 per common share underscores the Company’s commitment to pay annual dividends of at least USD 0.80 per common share from 2011 to 2014.In Russia, we are implementing our plans to improve the business performance and we regained market share during the year, which we intend to maintain while increasing our focus on profitable growth. In Italy, we saw further market share increases in the mobile and fixed line segments. Data revenues grew strongly in both these markets and in the Ukraine. Our Africa & Asia business unit continued to deliver excellent subscriber growth and the CIS unit produced double digit revenue growth.
Our focus in 2012 will continue to be on the delivery of our Value Agenda and the 2011 results provide a good platform for profitable growth and improved cash flows. The process of integrating the businesses acquired in 2011 is now completed and in 2012 we expect to leverage the benefits of our increased size and capabilities.”
VimpelCom Ltd. (NYSE: VIP)
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