Vimpelcom Q2 Net Profit Beats Forecasts

Emerging markets telecoms operator Vimpelcom posted a 83 percent increase in second-quarter net profit on Wednesday, beating market expectations as subscriber numbers grew across its markets.

The company said net profit totalled $488 million, up from a pro forma $267 million a year ago, while analysts had forecast it at $340.3 million.

Revenues fell 4 percent, affected by the appreciation of the dollar against the group’s operating currencies, such as the euro and the rouble, to stand at $5.7 billion, in line with a Reuters poll forecast, Vimpelcom said in a statement.

Earnings before interest, taxation, depreciation and amortisation (EBITDA) increased 2 percent to $2.48 billion, above a $2.38 billion forecast.

Vimpelcom, in which Norway’s Telenor has a 39.5 percent voting stake, generates 40 percent of its revenues in Russia, while Europe and North America is its second-biggest business unit, with a combined 30 percent share in total sales.

Reuters