UPDATE 1-Vimpelcom beats Q3 forecasts as earnings triple

Wed Nov 14, 2012 2:02am EST

* Net profit up 185 pct yr/yr to $538 mln vs $521 mln fcast

* Revenue down 6 pct to $5.75 bln on dollar appreciation

* Reports 3 pct organic growth in revenues, adds subscribers

* Russian organic revenues, core profit margin grow

MOSCOW, Nov 14 (Reuters) - Telecoms group Vimpelcom, with assets in Russia, Italy and various emerging markets, said on Wednesday its third-quarter net profit nearly tripled, year-on-year, due to higher operating profit and forex gains, beating expectations.

Net profit totalled $538 million, the Amsterdam-registered group said in a statement, up 185 percent from a year ago and above a $521 million average forecast in a Reuters poll of analysts.

Consolidated revenue fell 6 percent to $5.75 billion, in line with forecasts, due mainly to weakness in almost all its operating currencies, including the Russian rouble, against the dollar - Vimpelcom's reporting currency.

Organic revenue growth, excluding the effect of foreign currency movements, was 3 percent as the company's total mobile subscriber base rose by 7 percent to 212 million.

Earnings before interest, taxation, depreciation and amortisation fell 2 percent to $2.53 billion for a 44 percent margin, compared to the consensus forecasts of $2.51 billion and 43.7 percent respectively.

The company also said it continued to see a positive trend in its core Russian market, where it ceded the number two spot to rival MegaFon in 2010 while pursuing global expansion through a more than $6 billion deal for Egypt's Orascom Telecom and Italy's Wind.

In Russia it reported a 7 percent organic revenue growth for the third quarter, driven by mobile data, and an increase in its EBITDA margin to 43.2 percent from 40 percent a year ago as a result of its focus on profitability versus growth.

Vimpelcom's largest shareholders are Altimo, the telecoms arm of Russian billionaire Mikhail Fridman's Alfa-Group, and Norwegian telecoms group Telenor.

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

A tourist takes a plunge as she swims at Ngapali Beach, a popular tourist site, in the Thandwe township of the Rakhine state, October 6, 2013. Picture taken October 6, 2013. REUTERS/Soe Zeya Tun (MYANMAR - Tags: SOCIETY) - RTR3FOI0

Where do you want to go?

We look at when to take trips, budget considerations and the popularity of multigenerational family travel.   Video