Install

Get the latest updates as we post them — right on your browser

. Last Updated: 07/27/2016

VimpelCom Q2 Net Profit Leaps by 84%

VimpelCom, the country's second-largest mobile phone operator, said Thursday second-quarter net profit rose 84.3 percent, well above market expectations, due mainly to growing usage.

VimpelCom reported net profit of $359.3 million versus $194.9 million in the same period of 2006 and $277.3 million in the first quarter of this year.

In a poll, analysts had forecast second-quarter earnings of $324 million.

"The company achieved all-time records in key financial parameters: revenue, OIBDA, net income and operating cash flow," CEO Alexander Izosimov said in a statement.

The strength of the business was further supported by growth of operating parameters, including monthly average revenue per user and minutes of use simultaneously in all the markets where it operates, he said.

The consolidated results take account of VimpelCom's operations in Russia, Kazakhstan, Ukraine, Uzbekistan, Tajikistan, Georgia and Armenia.

Operating income before depreciation and amortization soared 59.7 percent to $896.8 million versus analysts' average estimate of $856.9 million.

OIBDA margin rose to 52.2 percent from 50.1 percent a year ago and above analysts' average forecast of 51.1 percent.

Net operating revenues advanced 53.1 percent to $1.72 billion versus the analysts' forecast of $1.68 billion.

The firm's average revenue per user, an indicator of client quality, rose to $12.3 from $9 a year ago and was well above analysts' expectation of $10.6.

The average revenue per user in Kazakhstan jumped to $13.60 from $12.60 in the same period of 2006. Analysts had expected it to be $11.50.

"This further validates our belief in the high growth potential of the CIS, which is becoming an increasingly important part of our business," Izosimov said.