Sei sulla pagina 1di 1
Vimpel-Communications Tel. +44 (0)20 7232 3090 Fax +44 (0)20 7232 3099 LSE: IIR Traded

Vimpel-Communications (Vimpelcom) registered robust growth in revenues, EBITDA and net income in 1Q 08. Robust revenue growth in 1Q 08 was driven by higher Average Revenue Per User (ARPU) growth experienced in Vimpelcom’s Russian, Ukrainian and Armenian operations and an increase in subscriber-base from all regions. Vimpelcom, acquired 49% of Corbina Telecom (a fixed-line operator in Russia) for US$404 mn during 1Q 08. Vimpelcom now has a 100% stake in Corbina. Corbina has operations in 25 Russian regions, including Moscow and St Petersburg. With the acquisition of Golden Telecom, Inc. (GT) and Corbina, Vimpelcom will be able to provide a full range of fixed-line and wireless voice and data services. Going forward, we expect growth in mobile subscriber-base in Russia to slow due to market saturation. Conversely, we expect expansion in broadband subscriber-base due to low broadband penetration. Currently, Russia has broadband Internet penetration of 10%, which is expected to reach 36% by 2012. In addition, Vimpelcom has received a 3G license for Russia, Uzbekistan and Armenia and is planning to launch its 3G network in the Southern Russian cities of Sochi, Krasnodar and Rostov-on-Don during the second half of 2008 which will drive top–line growth, going forward. As Vimpelcom’s 1Q 08 results were below our expectations, we have revised our FY 2008 and FY 2009 revenue estimates downwards. Furthermore we expect operating expenses, as a percentage of revenues, to decrease due to improved cost efficiency. As a result, we have revised our margin estimates upwards. In light of impressive 1Q 08 results, coupled with strong fundamentals our outlook for the ADR remains positive.