Like Spain or Italy
Russia’s cellular giant, VimpelCom, announced the 2005 results Tuesday. The solid financial indicators were backed up by promising outlook of VimpelCom CEO Alexander Izosimov.
VimpelCom earned $3.2 billion in 2005, having fueled the revenues by 52 percent, VimpelCom CEO Alexander Izosimov announced Tuesday. Net profit of the cellular operator went up 75.6 percent to $615.1 million; OIBDA climbed 53 percent on year.
Propelled by the good annual results, VimpelCom was accelerating on NYSE; the company’s ADRs gained 1.6 percent as of 9:00 p.m. MSK.
The analysts attribute the growth to positive outlook made by Izosimov in time of the conference with investors. According to VimpelCom CEO, ARPU passed its minimum early this year; it will become stable and rise after a while. In its advance, Izosimov said, Russia’s market will be similar to the markets of South Europe, like Italy and Spain, where ARPU accelerates on average increase in spoken minutes. First time over the recent years, we have ARPU growth in Moscow, Izosimov pointed out.
It is worth mentioning that another cellular giant of Russia, MTS, was losing yesterday, having slid 1 percent in the third trading hour on NYSE. The analysts don’t think this decline will aggravate the attitude of investors towards the cellular market of Russia. They are just disposing of MTS to buy VimpelCom, which market results are better.
www.kommersant.com
All the Article in Russian as of Apr. 19, 2006
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