Vimpelcom’s net profit under IFRS for the 4th quarter reached $21 million against a loss a year

MOSCOW, February 17. Vimpelcom’s net profit under international financial reporting standards (IFRS) for the fourth quarter of 2015 reached $21 million against a net loss of $809 million a year earlier. As they say in the company message, profit in the reporting period exceptional article operating costs in the amount of $105 million, related, including, to the cost of the transformation of the business of the holding company.

Revenue of Vimpelcom during the reported quarter decreased 23% compared to the same period of 2014 and amounted to $2.3 billion including revenue from mobile and fixed networks fell by 25% to $2.2 billion, and mobile data transmission by 10% to $313 million.

EBITDA in the 4th quarter with the reserve (including the investigation of corruption in Uzbekistan – the U.S. government and the Netherlands Vimpelcom check of the transaction with Takilant Ltd., which is associated with the daughter of Uzbekistan’s President Gulnara Karimova – approx. ed.) amounted to $793 million, a decrease of 26%, including the negative impact of foreign exchange rates. Without reserve, by 22% to $898 million EBITDA Margin, excluding reserve amounted to 39% compared to 38.4% a year earlier.

The total subscriber base of Vimpelcom fell by 0.8 million to 196,3 million mobile customers by the end of the fourth quarter of 2015, the Number of subscribers of fixed Internet access decreased by 2% to 3.4 million.

Net loss increased by 7%

The company’s net loss under international financial reporting standards for 2015 grew by 7% compared to 2014, reaching $691 million, according to the company.

Vimpelcom reflected in their reporting “exceptional expenditure” in the amount of $1,069 billion, this amount includes $927 million as part of the case for investigation by the US authorities of the Netherlands and trades operator in Uzbekistan (of which $900 million of possible future costs), $156 million for the transformation program of the group. These articles had a negative effect on net loss and EBITDA of Vimpelcom in the reporting period.

Revenue of Vimpelcom for 2015 has decreased by 29% compared to 2014 and amounted to $9,625 bn due to the negative impact of foreign exchange rates. At the same time, the organic growth rate was 1% due to the good results in Pakistan, Bangladesh, Kyrgyzstan, Uzbekistan and Ukraine. Service revenue also fell by 29% to $9,33 billion, organically this figure is virtually unchanged compared with last year.

EBITDA with regard to “exclusive articles” amounted to $2,86 billion, a decrease of 49%. Excluding 30% up to $3,93 billion, the EBITDA Margin amounted to 29.7 per cent against 41.1 per cent a year earlier.

“Vimpelcom has achieved its goals for 2015, despite the negative effects of exchange rate changes and difficult economic conditions in most emerging markets. In 2015, we announced a strategic transformation of our business and in 2016 we will strictly adhere to the set goals”, – commented General Director of Vimpelcom, Jean-Yves Charlier.