Telecom Services

VimpelCom invests $657 mn as Capex in Q2, to cut investment

August 6, 2015

VimpelCom today said its investment towards Capex (capital spending) fell 34 percent to $675 million in the second quarter of 2015.

Jean-Yves Charlier, CEO of VimpelCom, said that the company will maintain its strategy to invest in high-speed data networks to capture mobile data growth, including the continued rollout of 4G/LTE networks in Russia, Italy and Georgia, as well as 3G networks in Algeria, Pakistan, Bangladesh and Ukraine.”

VimpelCom has slashed the Capex to revenue target to 18-20 percent from the earliest estimate of 20 percent due to efficiencies from ongoing cost saving initiatives. “The reduced spend will have no impact on VimpelCom’s high-speed data network rollout plans for 2015 and customer experience,” said Charlier.

Netherlands based VimpelCom posted 26 percent dip in Q2 revenue to $3759 million, while net income rose 8 percent to $108 million.

Incidentally, mobile data revenue of VimpelCom dropped 8 percent to $497 million. VimpelCom lost 1 percent of its total mobile customer base to 213.4 million.