VimpelCom Q4 Net Loss of $386 Mln after Profit

VimpelCom Ltd., which includes one of Russia’s top three mobile operators, saw a $386 million net loss in the fourth quarter of 2011 to US GAAP, when compared with net profit at $461 million in the same period for 2010, the firm said in a statement on Tuesday.

Revenue rose 109 percent in October-December 2011 to $5.878 billion, while Earnings Before Interest, Taxation, Depreciation, Amortization (EBITDA) soared 77 percent to $2.2 billion.

“VimpelCom has delivered strong operational performance across all business units in the fourth quarter of 2011, driving organic revenue growth of five percent, stable EBITDA and strong cash flows of $1.8 billion in the period,” CEO Jo Lunder was quoted in company’s statement as saying.

Capital expenditures skyrocketed 238 percent in the fourth quarter of 2011 to $3.862 billion compared to the same period in 2010.

As for the whole year, the company’s net profit plummeted 71 percent to $488 million, while revenue grew 93 percent to $20.250 billion.

“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,” Lunder also said.


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