RusTele.com

Vimpelcom Q2 beats profitability forecasts

MOSCOW, Aug 27 (Reuters) - Russia's second-largest mobile operator Vimpelcom more than doubled its rouble net profit, it said Thursday, becoming the latest Russian company to beat earnings forecasts in its second-quarter numbers.
The company said the telecoms business remained robust in a quarter when the Russian economy saw its largest ever drop, though it said macroeconomic uncertainty remained a concern.
Net profit clocked in at 22.6 billion roubles, or $702.5 million at an average rate of 32.17 roubles per dollar for the period. A year earlier, it reported net profit of $470 million.
Forex gains were included in the profit were in line with forecasts in dollar terms of $341 million. 
On the core earnings level, it reported a margin of 50.6 percent, compared with a consensus forecast of 48.9 percent.
"I am especially proud to report that revenue growth coupled with successful business integration and ongoing cost control yielded a consolidated fixed and mobile OIBDA (operating income before depreciation and amortisation) margin of 50.6," Chief Executive Boris Nemsic said in a statement.
Revenue grew to 69.04 billion roubles from 61.68 billion a year earlier, though they fell in dollar terms to an expected $2.15 billion from $2.61 billion.
Vimpelcom, Russia's most leveraged telecoms operator, said it repaid $456 million during the quarter and refinanced part of the remainder into roubles. It has to pay around $2 billion of debt this year, of which $600 million was repaid in the first quarter.