Seeking Alpha

Vimpelcom net profit cut in half to $255M

  • Vimpelcom's (VIP) Q3 net profit slumped 53% to $255M and badly missed consensus of $504M, with earnings hurt by a tax expense, and regulatory and competitive pressures.
  • Revenue fell 1% to $5.7B.
  • EBITDA -2% to $2.5B, below consensus of $2.52B.
  • Total mobile subscriber base +5% on year to 219M.
  • The Russian carrier declared an interim dividend of $0.45 a share. (PR)
Comments (3)
  • 81george
    , contributor
    Comments (182) | Send Message
     
    I posted a warning about VIP back in October, which obviously fell on deaf ears, since VIP stock continued to rally. Don't be surprised if VIP writes off billion dollars as a loss soon, just like MBT did, both related to the business in Uzbekistan. Hope you will get smarter this time around. And here are my old comments:

     

    81george
    Oct 16 12:31 PM
    There was an information in the Russian news today, that VIP may loose it's Uzbekistan subsidiary after local authorities filed a tax evasion charges, just like they did to MBT (Russian MTS operator, which resulted in almost 1 billion loss) . This is some serious issue.

     

    Oct 18 07:07 AM

     

    http://reut.rs/16fJEtn
    6 Nov 2013, 07:04 AM Reply Like
  • 81george
    , contributor
    Comments (182) | Send Message
     
    http://reut.rs/16fJEtn
    6 Nov 2013, 07:05 AM Reply Like
  • 11146471
    , contributor
    Comments (349) | Send Message
     
    81george,

     

    what is your estimation/opinion on rival MegaFon?

     

    You seem to have a solid grasp of the Russian mobile market.
    26 Feb, 03:34 PM Reply Like
DJIA (DIA) S&P 500 (SPY)