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. Last Updated: 07/27/2016

Vimpelcom Posts Q3 Loss of $900,000, High User Growth

Moscow cellular provider Vimpelcom continues to lose money, but it has doubled its subscriber base to 739,000 since January, according to third-quarter and nine-month financial results released by the company Tuesday.

Vimpelcom trimmed its operating loss for the third-quarter ended Sept. 30 to $900,000, down from $1.7 million a year ago, on total operating revenues of $73.8 million, up 29.78 percent from $56.9 million for the same period in 1999.

The company’s operating loss for the first nine months of the year was $5.2 million — almost half of the $9.7 million it posted for the same period in 1999. Total operating revenues for January to September were $208.3 million, an increase of 20.7 percent from the $172.5 million reported for the same period in 1999.

Third-quarter earnings before interest, taxes, depreciation and amortization, or EBITDA, was $14.1 million, up 9.3 percent from the second quarter and 20.5 percent higher year-on-year. EBITDA for the nine months of 2000 was $38.2 million, up $6.8 million posted for the same period last year.

"We are very pleased the positive trends in our financial performance continue to grow," said Vimpelcom CEO Dmitry Zimin in a press release. "It validates our strategy of maintaining adequate growth as we concentrate on return to profitability," he said.

Vimpelcom, which claims 40 percent of the Moscow market, reported a year-on-year 31.5 percent decrease in the average monthly minutes used per subscriber, although at 89 minutes, it’s up 3.5 percent from the second quarter.

It also reported a third-quarter drop in average revenue per user to $36 from $39 last quarter.

MTS, Vimpelcom’s main competitor, earlier this month reported an average revenue per user of $58. It recently acquired its one-millionth subscriber.