Repost: VimpelCom Reports 53% Increase in EBITDA for 1st Quarter 1998
PR Newswire - June 04, 1998 09:13
ÿÿÿÿÿ VimpelCom Awarded GSM-1800 Licenses Covering 84 Million Population, 91% Year-To-Year Subscriber Growth
ÿÿÿ MOSCOW and NEW YORK, June 4 /PRNewswire/ -- Open Joint Stock Company Vimpel-Communications ("VimpelCom") (NYSE: VIP) today reported higher EBITDA and continuing subscriber growth for the first quarter ended March 31, 1998, as well as the award of 4 new GSM-1800 (PCS) licenses.ÿ The new licenses increase VimpelCom's population coverage to approximately 100 million, including Moscow.
For the first quarter ended March 31, 1998, VimpelCom reported total operating revenues of $92.4 million, a 39% increase over the $66.7 million in total operating revenues reported in the same period in 1997.ÿ For the first quarter of 1998, total net operating revenues (net of revenue-based taxes) were $89.1 million, a 39% increase over the $64.1 million in net operating revenues reported in the same period in 1997.ÿ Operating income for the first quarter of 1998 increased 39% to a record $28.3 million, compared with the $20.3 million in operating income reported in the same period a year ago.
Net income for the quarter ended March 31, 1998, was $16.5 million, or $0.86 per share ($0.64 per ADS), compared to $16.8 million, or $ 0.87 per share ($0.65 per ADS), earned in the same period in 1997.ÿ Each ADS represents 0.75 of one share of common stock. Net income growth in the first quarter of 1998 was constrained by higher depreciation and financing charges, reflecting the increased investments the company has been making in its networks, higher provision for income taxes and a net loss on foreign exchange when compared to the same period in 1997.
EBITDA for the first quarter ended March 31, 1998 was strong and reached a record $37.5 million, 53% higher than the $24.5 million in the first quarter of 1997.ÿ The EBITDA margin for the quarter ended March 31, 1998, was 42.1%, an increase over the 38.2% EBITDA margin in the same quarter of 1997.ÿ The increase in EBITDA margin is due primarily to an improvement in service revenue margins, which more than offset the reduction in the margin on sales of handsets and lower contributions from one-time activation fees.
Selling, general and administrative expenses for the first quarter of 1998, increased 37% to $23.7 million compared to the $17.3 million reported in the same period in 1997.ÿ The increase in selling, general and administrative expenses in the first quarter of 1998 was due primarily to the increase in the level of business activity compared with the same period in 1997 and growth in VimpelCom's infrastructure to better support increases in business activity.
For the first quarter of 1998, the Company recorded a $5.1 million provision for doubtful accounts, or 5.8% of net revenues for doubtful accounts compared with $3.5 million, or 5.5% of net revenues in the same period in 1997.ÿ This increase in provision for doubtful accounts receivable was due to the growth in business activity.
Depreciation and amortization expense was $9.2 million for the first quarter of 1998, 118% increase compared to $4.2 million in the same period of 1997.ÿ The increase was due to the increased depreciable asset base resulting from the Company's continuing capital investments in its D-AMPS and GSM-1800 networks.
At the end of the first quarter of 1998, VimpelCom had 123,324 subscribers on its networks.ÿ This represents a growth of approximately 91% over the 64,607 subscribers at the end of the first quarter of 1997.ÿ At the end of the first quarter of 1998, VimpelCom's 50% subsidiary in Samara had 7,023 subscribers, a growth of 163% over the 2,675 subscribers at the end of the first quarter of 1997.
Commenting on today's announcement, Dmitri Zimin, President and Chief Executive Officer of VimpelCom said: "We are delighted with our first quarter results and especially with our continued strong EBITDA performance. Subscriber growth is in line with our expectations as the Moscow market tends to be much stronger during the second half of the year.ÿ Recently we introduced new tariff plans for the full range of our services with the aim to better position our GSM-1800 product in the Moscow market and to stimulate sales growth.ÿ Early indications show that the market has responded well to these new tariff plans.ÿ We also continue to expand our D-AMPS Moscow central network, as we recently signed our 8th expansion contract for $22 million with Ericsson.
We are particularly delighted with the recent award of four new GSM-1800 licenses, which, together with the existing Moscow license, cover 52 administrative units of Russia.ÿ The new licenses cover multiple administrative units which are generally defined in the licenses as the Central and Central Black Earth Region, Volga Region, North Caucasus Region and Siberian Region.ÿ These licenses will provide the Company with new opportunities to continue its business strategy of extending our foot-print across Russia.ÿ These new licenses will bring our total pops to approximately 100 million or 68% of the Russian population."
VimpelCom is the largest provider of cellular telecommunications in Russia, marketing its services under the brand name "Bee Line".ÿ The VimpelCom Group operates the only Digital-AMPS cellular network and the first Russian PCS network, using GSM technology, in the Moscow License Area, which include the City of Moscow and the Moscow Region.ÿ The VimpelCom Group holds various GSM-1800 and AMPS/D-AMPS licenses covering a total population of approximately 100 million (68% of Russia's population).ÿ VimpelCom was the first Russian company listed on the New York Stock Exchange (November 1996), trading under the symbol "VIP".
This press release contains forward-looking statements related to the development of the Company's business.ÿ These statements are based on Management's best assessment of future market conditions and trends.ÿ The actual outcome may differ from these statements as a result of unforeseen developments from competition, governmental regulations of the wireless telecommunications industry, general political uncertainties in Russia and general economic developments in Russia.ÿ VimpelCom disclaims any obligation to update developments of these risk factors or to announce publicly any revision to any of the forward-looking statements contained in this release, or to make corrections to reflect future events or developments. ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Open Joint Stock Company Vimpel-Communications
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Unaudited Consolidated Statements of Income
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Three months ended
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ March 31,
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 1998ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 1997
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ (In thousands, except per share (ADS) amounts)
ÿÿÿ Operating revenues
ÿÿÿ Service revenues
ÿÿÿÿ and connection feesÿÿÿÿÿÿÿ US$84,391ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ US$58,434
ÿÿÿ Sales of handsets
ÿÿÿÿ and accessoriesÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 8,028ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 8,295
ÿÿÿ Total operating
ÿÿÿÿ revenuesÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 92,419ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 66,729
ÿÿÿ less revenue-based
ÿÿÿÿ taxesÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 3,337ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 2,582
ÿÿÿ Net operating
ÿÿÿÿ revenuesÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 89,082ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 64,147
ÿÿÿ Operating expenses:
ÿÿÿ Service costsÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 16,889ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 13,302
ÿÿÿ Cost of handsets
ÿÿÿÿ and accessories soldÿÿÿÿÿÿÿÿÿÿ 5,834ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 5,497
ÿÿÿ Selling, general and
ÿÿÿÿ administrative expensesÿÿÿÿÿÿ 23,731ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 17,340
ÿÿÿ Depreciation and
ÿÿÿÿ amortizationÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 9,151ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 4,192
ÿÿÿ Provision for
ÿÿÿÿ doubtful accountsÿÿÿÿÿÿÿÿÿÿÿÿÿ 5,146ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 3,501
ÿÿÿ Total Operating expensesÿÿÿÿÿÿ 60,751ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 43,832
ÿÿÿ Operating incomeÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 28,331ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 20,315
ÿÿÿ Other income and expenses:
ÿÿÿÿ Other incomeÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 370ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 0
ÿÿÿÿ Interest incomeÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 649ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 1,167
ÿÿÿÿ Interest expenseÿÿÿÿÿÿÿÿÿÿÿÿ (2,413)ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ (1,386)
ÿÿÿÿ Net foreign
ÿÿÿÿÿ exchange (loss) gainÿÿÿÿÿÿÿ (2,222)ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 1,842
ÿÿÿ Total other income
ÿÿÿÿ and expensesÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ (3,616)ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 1,623
ÿÿÿ Income before income
ÿÿÿÿ taxes and minority interestÿÿ 24,715ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 21,938
ÿÿÿ Provision for income taxesÿÿÿÿÿ 7,740ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 5,077
ÿÿÿ Minority interest in
ÿÿÿÿ net losses of subsidiariesÿÿÿÿÿÿ 449ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 52
ÿÿÿ Net incomeÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ US$16,526ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ US$16,809
ÿÿÿ Net income per common shareÿÿÿÿ $0.86ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ $0.87
ÿÿÿ Net income per ADS equivalentÿÿ $0.64ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ $0.65
ÿÿÿ Weighted average
ÿÿÿÿ common shares outstanding
ÿÿÿÿ (thousands)ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 19,280ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 19,280
ÿÿÿ EBITDAÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ US$37,482ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ US$24,507
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Open Joint Stock Company Vimpel-Communications
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Condensed Consolidated Balance Sheet
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ March 31,ÿÿÿÿÿÿÿÿÿÿÿÿ December 31,
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 1998ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 1997
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ (Unaudited)
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ (In thousands US dollars)
ÿÿÿ Assets
ÿÿÿ Current Assets:
ÿÿÿÿ Cash and cash equivalentsÿ US$14,864ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ US$14,333
ÿÿÿÿ Short-term investmentsÿÿÿÿÿÿÿ 15,496ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 24,169
ÿÿÿÿ Accounts receivableÿÿÿÿÿÿÿÿÿÿ 50,772ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 41,487
ÿÿÿÿ Other current assetsÿÿÿÿÿÿÿÿÿ 39,699ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 34,436
ÿÿÿ Total current assetsÿÿÿÿÿÿÿÿÿ 120,831ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 114,425
ÿÿÿ Property and equipment, netÿÿ 371,982ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 347,653
ÿÿÿ Other assetsÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 24,890ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 21,020
ÿÿÿ Total Assetsÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 517,703ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 483,098
ÿÿÿ Liabilities and
ÿÿÿÿ shareholders' equity
ÿÿÿ Current liabilities:
ÿÿÿÿ Accounts payableÿÿÿÿÿÿÿÿÿÿÿÿÿ 15,135ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 12,287
ÿÿÿÿ Customer depositsÿÿÿÿÿÿÿÿÿÿÿÿ 57,868ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 51,738
ÿÿÿÿ Bank loansÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ --ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 11,001
ÿÿÿÿ Equipment financing,
ÿÿÿÿÿ current portionÿÿÿÿÿÿÿÿÿÿÿÿÿ 12,530ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 10,389
ÿÿÿÿ Other accrued liabilitiesÿÿÿÿ 16,967ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 11,382
ÿÿÿ Total current liabilitiesÿÿÿÿ 102,500ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 96,797
ÿÿÿ Deferred incomes taxesÿÿÿÿÿÿÿÿ 35,424ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 35,201
ÿÿÿ Equipment financing and
ÿÿÿÿ other liabilitiesÿÿÿÿÿÿÿÿÿÿÿ 148,666ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 136,962
ÿÿÿ Minority interestÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 6,936ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 6,487
ÿÿÿ Shareholders' equityÿÿÿÿÿÿÿÿÿ 224,177ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 207,651
ÿÿÿ Total liabilities and
ÿÿÿÿ shareholders' equityÿÿÿÿÿ US$517,703ÿÿÿÿÿÿÿÿÿÿÿÿÿ US$483,098
SOURCEÿ Vimpel-Communicationsÿÿÿÿ
/CONTACT:ÿ Valery Goldin of VimpelCom, Moscow, 7-095-974-5888, or
vgoldin@vimpelcom.com; or Mona Walsh, 212-704 4423, mona_walsh@edelman.com, or
Joshua Hochberg, 212-704-4497, joshua_hochberg@edelman.com, both of Edelman
Financial for VimpelCom/
ÿÿÿ (VIP) |
