VimpelCom announces third quarter and nine months 2003 financial and operating results
20 Nov 2003
Moscow and New York (November 20, 2003) - Open Joint Stock Company "Vimpel-Communications" ("VimpelCom" or the "Company") (NYSE: VIP), a leading provider of wireless telecommunications services in Russia, today announced its financial and operating results for the quarter and nine months ended September 30, 2003. During the third quarter of 2003, VimpelCom showed strong subscriber growth and substantial improvement in net operating revenues and net income. These positive trends characterized the Company's growth both in Moscow and in the regions, with the regions growing faster than Moscow. Consolidated financial statements of VimpelCom and consolidated financial statements of VimpelCom-Region, VimpelCom's subsidiary for regional development, are attached.
For the quarter ended September 30, 2003, VimpelCom reported net operating revenues of $379.0 million, a 71.4% increase from the $221.1 million reported for the same period in 2002; OIBDA of $178.5 million, a 74.0% increase from the $102.6 million reported for the same period in 2002; and net income of $72.2 million, an increase of 78.3% from the $40.5 million reported for the same period in 2002. The Company's OIBDA margin for the third quarter of 2003 was approximately 47.1% compared to approximately 46.4% for the same period of 2002. OIBDA, previously referred to as EBITDA by the Company, is defined as operating income before depreciation and amortization. OIBDA margin is defined as OIBDA expressed as a percentage of net operating revenues. For more details, see note 1 to the table "Key Financial and Operating Indicators." Net operating revenues, excluding inter-company transactions, for the Moscow license area and the regions in the third quarter of 2003 were $259.7 million and $119.3 million, respectively. Net income, excluding inter-company transactions, for the Moscow license area and the regions in the third quarter of 2003 was $61.6 million and $17.9 million, respectively. As of September 30, 2003, there were approximately 9.26 million subscribers on wireless networks operated by VimpelCom and its subsidiaries, an increase of approximately 130% compared to September 30, 2002, including approximately 5.08 million subscribers in the Moscow license area and approximately 4.18 million subscribers in the regions. As of today, there are approximately 10.37 million subscribers on wireless networks operated by VimpelCom and its subsidiaries, with approximately 5.39 million subscribers in the Moscow license area and approximately 4.98 million subscribers in the regions. Based on independent sources, VimpelCom estimates that its market share in the Moscow license area was 49.0% as of September 30, 2003, compared to 52.7% as of September 30, 2002 and that its overall market share in Russia was 31.0% as of September 30, 2003, compared to 26.5% as of September 30, 2002. Commenting on today's announcement, Alexander Izosimov, Chief Executive Officer of VimpelCom, said, "We are very pleased with our third quarter results. Subscriber growth continued to beat market expectations and our financial figures again showed substantial progress, particularly in the regions. These developments reflect our continued success in executing our expansion strategy which was facilitated by the steady growth in the Russian economy and the positive seasonal effects typical for the third quarter." Mr. Izosimov concluded: "VimpelCom intends to continue implementing its market-oriented strategy, focusing on organic growth, innovative product development, efficient marketing and customer satisfaction." (the full press realise see on http://www.vimpelcom.com/news/press/P20031120.html)
|
