) posted second-quarter 2013 financial results where the bottom
line recorded a double-digit growth but the top line remained
flat. At the end of second-quarter 2013, VimpelCom had 215
million total subscribers across its operating territories,
reflecting a 5% year-over-year increase.
Total revenue in the second quarter stood at $5,718 million, flat
year over year. Revenues were mainly affected by 72% MTR cut in
Italy. Reported net income for the quarter was $573 million or 33
cents per share compared with $488 million or 30 cents in the
Quarterly EBITDA margin was 42.4% compared with 43.2% in the
year-ago quarter. Operating expenses in the reported quarter were
$4,494 million against $4,553.7 million in the year-ago quarter.
Quarterly operating profit was $1,224 million compared with
$1,192 million in the year-ago quarter. Operating margin for the
second quarter was 21.4% versus 20.7% in the previous-year
During the second quarter of 2013, VimpelCom generated $2,450
million of cash from operations compared with $2,488 million in
the year-ago quarter. At the end of the second quarter of 2013,
VimpelCom had approximately $4,551 million in cash and cash
equivalents on its balance sheet compared with $5,564 million at
the end of 2012. Outstanding debt, at the end of the reported
quarter, was $22,622 million compared with $27,219 million at the
end of 2012.
Revenues by Key Markets
Revenues in Russia, the operator's largest market, rose 3% year
over year to $2,334 million but revenues in Italy, the operator's
second largest market, fell 7% year over year to $1,654 million.
Likewise, revenues in Africa & Asia and Ukraine dropped 5%
and 1%, respectively, to $910 and $400 million. Revenues for CIS
(Uzbekistan, Uzbekistan, Armenia and Kyrgyzstan) increased 17%
year over year.
Other Stocks to Consider
Currently, VimpelCom carries a Zacks Rank #4 (Sell) while other
stocks worth considering within the sector are
BT Group plc
). All three carry a Zacks Rank #3 (Hold).
BT GRP PLC-ADR (BT): Free Stock Analysis
FRANCE TELE-ADR (ORAN): Free Stock Analysis
AT&T INC (T): Free Stock Analysis Report
VIMPELCOM LTD (VIP): Free Stock Analysis
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