Fri, Nov. 6, 10:18 AM
- VimpelCom (NASDAQ:VIP) is off 7.3% after a $900M provision for multiple regulatory investigations pushed it to a billion-dollar loss for the third quarter.
- The company noted exceptional items of $1.196B total, including that provision. Excluding that, it said, underlying profit came to $191M.
- VimpelCom said it would set aside the funds as U.S. and Dutch authorities examined the company's business dealings in Uzbekistan as part of a corruption probe.
- Revenue fell 31% to $2.44B though it said organic growth -- excluding foreign exchange, disposals, mergers, acquisitions -- was up 2% Y/Y. It's reclassified its Italy business as asset held for sale pending the merger of its Wind Telecomunicazioni with Three Italia.
- It reaffirmed key targets for 2015 (including service revenue flat to low-single-digit organic decline, and underlying EBITDA margin flat to -1 percentage point organically)
- Press release
- Previously: Former VimpelCom CEO Lunder in custody amid Uzbek corruption probe (Nov. 05 2015)
- Previously: U.S. telecom probe seeking to seize $1B in European assets (Aug. 13 2015)
Fri, Nov. 6, 6:25 AM
Thu, Aug. 6, 9:47 AM
- VimpelCom (NASDAQ:VIP) is up 3.8% after the company finally came to agreement to merge its Italy unit, Wind Telecomunicazioni, with Hutchison's (OTCPK:HUWHY) Three Italia, in a €21.8B deal (about $24B), creating a telecom carrier that would surpass Telecom Italia (TI -1.9%) as Italy's leader in total customers, with more than 31M.
- The talks -- in progress for well over a year -- result in a 50/50 venture where Wind's CEO Maximo Ibarra will keep his role while Three's COO Dina Ravera will oversee integration. Each firm will nominate three board members to a six-member board.
- The deal values Wind at €13.9B and Three at €7.9B. An IPO for the JV was reported to be considered earlier, though VimpelCom CEO Jean-Yves Charlier says they haven't discussed one.
- The transaction requires antitrust approval from Europe, but Italy is late to the consolidation game, as countries like Germany, Ireland and Austria had previously gone from four carriers to three.
- The companies say the deal will deliver cost savings of more than €5B, mainly from combining the mobile networks.
- VimpelCom also posted Q2 results where its Q2 revenues narrowly beat expectations despite a 26% drop.
Thu, Aug. 6, 5:38 AM
Wed, May 13, 11:36 AM
- VimpelCom (NASDAQ:VIP) is up 7% now following news of progress on its Italy-unit merger and earnings that grew despite revenues that slipped 30%, pummeled by currency exchange.
- EBITDA was down 30% Y/Y as well (to $1.396B, vs. expected $1.43B), but on an organic basis, revenues were down 2% and EBITDA down 6%, in line with management's expectations. EBITDA margin fell to 39.7% from a year-ago 41.6%.
- Organic revenues were flat or down in the company's biggest geographies: Russia, $1.04B (flat on organic basis); Italy, $1.11B (down 5%); Algeria, $320M (down 11%).
- Mobile customers increased 2% to 218M. Customer base in Algeria gained 6% to 18.7M and Bangladesh 8% to 31.8M. Italy customers slipped 3% to 21.4M, while Russia gained 1% to 55.7M.
- The company stuck to current guidance for 2015: organic service revenue flat to a single-digit decline, EPS of $0.35-$0.40 (vs. consensus $0.40) and net debt/EBITDA of about 3.2x (1.7x, excluding Italy unit). It plans to update shareholders on strategy in August.
- Press Release
- Previously: VimpelCom, Hutchison Italy merger talk focuses on even split (May. 13 2015)
Wed, May 13, 2:19 AM
Wed, Feb. 25, 8:26 AM
- VimpelCom's (NASDAQ:VIP) Q4 revenue came in slightly to the upside of expectations at $4.39B, but the firm was hit by currency headwinds in posting a net loss of $0.53/share and a net loss of $691M for the year.
- EBITDA off $1.6B was about 7% off of expectations and down organically 8%.
- "We expect the operating environment to remain difficult in 2015, however I am confident that we have the right strategy to deliver on our targets," says CEO Jo Lunder.
- Facing the effects on the ruble and Ukraine's hryvnia, the firm will switch to negotiating vendor contracts in dollars.
- For 2015, the company expects service revenue to be anywhere from flat to a low-single-digit organic decline, and EBITDA flat to -1%. EPS is expected to come in at $0.35-$0.40.
- VimpelCom had announced an agreement with MTS (NYSE:MBT) to jointly plan, develop and operate 4G/LTE networks in Russia over the next few years.
- Press release
Wed, Feb. 25, 5:31 AM
Nov. 12, 2014, 9:48 AM
Aug. 6, 2014, 9:11 AM
Mar. 6, 2014, 6:30 AM
Mar. 6, 2014, 4:37 AM
- VimpelCom (VIP) swung to a Q4 net loss of $2.7B from a profit of $195M a year earlier and badly missed consensus for a profit of $437M.
- Earnings were hurt by the Russian mobile carrier taking $2.9B in non-cash impairments, including just over $2B for its Ukraine operations.
- Revenue -7% to $5.6B vs analyst expectations of $5.7B.
- EBITDA -3% to to $2.4B, as expected. (PR)
Nov. 6, 2013, 2:42 AM
- 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)
Aug. 7, 2013, 7:26 AM
May 15, 2013, 6:06 AM
Mar. 6, 2013, 3:20 AMVimpelcom (VIP): Q4 net profit $801M vs loss of $381M a year earlier and consensus of $477.5M. EBITDA +9.9% to $2.45B vs expectations of $2.47B. EBITDA margin 41.1% vs 37.8%. Revenue +1% to $5.95B vs forecasts of $5.88B. Subscriber base +5% to 214M. Expects capex to grow 22% in 2013. Will announce dividends in Q2. (PR) | Mar. 6, 2013, 3:20 AM | Comment!
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