VimpelCom makes $457 million investment in Sept quarter

VimpelCom investment in Q3 2015
Telecom network operator VimpelCom has made an investment of $457 million in networks during the September quarter in 2015.

Netherlands based VimpelCom said its Capex (capital spending) fell 39 percent in the third quarter of 2015. The reduction in Capex was mainly due to the depreciation of the RUB, EUR and UAH against the USD as well as organic Capex savings.

As per its long term strategy, VimpelCom will invest in high-speed data networks to capture mobile data growth. It is making investment in 4G LTE networks in Russia, Italy and Georgia, as well as 3G networks in Algeria, Pakistan, Bangladesh and Ukraine.

In Russia, the company invested RUB 12,358 million in high-speed data networks during the quarter. VimpelCom signed an agreement with MTS for jointly running 4G LTE networks.

VimpelCom invested DZD 3.4 billion in Capex in Algeria. Djezzy continued its investments in its high-speed 3G network and 2G network modernization. In Q3, its Capex was DZD 3.4 billion with the LTM Capex to revenue ratio at 15 percent.

The telecom network operator has invested PKR 6.7 billion in Pakistan. The reduction in Capex in Pakistan was due the completion of 2G network modernization in 2014. However, the company is investing in 3G network roll-out and is the first operator in Pakistan to launch a 3G network in 200 cities.

The company made an investment of BDT 3.8 billion in Bangladesh. Capex in Bangladesh fell in Q3, while LTM Capex to revenue ratio stood at 25 percent, as the company invested in high-speed data networks during the quarter.

In Ukraine, the company made an investment of UAH 778 million. Capex increased 75 percent to UAH 778 million in the quarter, mainly due to investments in the 3G network. The LTM Capex to revenue ratio was 25 percent.

In Kazakhstan, the company made an investment of KZT 4.0 billion, and LTM Capex to revenue stood at 15 percent.

WIND invested EUR 170 million in Italy to deploy the 4G LTE network, covering 48 percent of the population, and enhance capacity and coverage of the existing HSPA+ network.

In addition, VimpelCom invested UZS 87 billion in Uzbekistan, AMD 2,240 million in Armenia, $2 million in Tajikistan, GEL 11 million in Georgia, KGN 666 million in Kyrgyzstan.

The revenue of VimpelCom fell 31 percent to $2,442 million in Q3 2015, while it clocked a loss of $834 million against a profit of $427 million. The net loss reflects provision of $900 million in connection with the investigations by the SEC, DOJ and OM relating to its telecom business in Uzbekistan.

Baburajan K
[email protected]