VimpelCom reveals investment, revenue in Q2 2016

VimpelCom Q2 2016 revenueTelecom network operator VimpelCom has revealed its investment and revenue in the second quarter of 2016.

VimpelCom revenue fell 16 percent to $2,156 million in Q2 2016. VimpelCom has generated $2,089 million (–17 percent) from mobile and fixed service and $334 million (+2 percent) from mobile data business.

The Capex (capital expenditure) of VimpelCom was $306 million (–34 percent) in Q2 2016. The telecom operator has maintained 17 percent as sales to Capex ratio.

VimpelCom said Russia generated Q2 revenue of $1,013 million (–22%) Algeria $251 million (–23%) Pakistan $285 million (+11%) Bangladesh $157 million (+4%) Ukraine $146 million (–5%) Uzbekistan 164 million (–6%) and others $140 million (–34%)

“We saw particularly solid performances in Pakistan and Ukraine and mobile data revenue growth was also strong, up 26 percent, reflecting our strategic focus to transform our business from traditional voice and messaging to data and digital services,” said VimpelCom CEO Jean-Yves Charlier.

VimpelCom closed the transaction in Pakistan with Warid. It also announced a technology deal with Ericsson to invest $1 billion to overhaul IT systems.

Capex programs

VimpelCom said its Capex decreased 41 percent to $347 million in Q2 2016, primarily as a result of currency depreciation and Performance Transformation program, leading to a LTM capex to revenue ratio of 17 percent.

The telecom company will maintain its strategy of investing in high-speed data networks to capture mobile data growth, including the continued rollout of 4G/LTE networks in Russia and Algeria and 3G networks in Algeria, Bangladesh, Pakistan and Ukraine.


Capex in Russia excluding licenses decreased 36 percent to RUB 7.2 billion, largely due to phasing, together with capital efficiency improvements, mainly as a result of savings from centralizing procurement on a global basis. The LTM capex to revenue ratio for Q2 2016 was 17 percent.


In May 2016, Djezzy was awarded one of three licenses to provide 4G/LTE services in the country. The company expects to launch high-speed 4G/LTE in autumn 2016 with the opportunity to win back high value customers. The company is modernizing and upgrading existing sites to a single-RAN architecture and to date 1,000 sites have already been upgraded. Djezzy is upgrading its network to an all-IP enabled technology in order to address the expected increase in data traffic.


Capex decreased to PKR 3.6 billion in Q2 2016 with a LTM Capex to revenue ratio of 17 percent and Mobilink continues to invest in its high-speed 3G network roll-out. Mobilink has also completed the network swap, an action of the global procurement program in order to improve pricing and technical support activities.


Capex increased 3 percent to BDT 2.6 billion in Q2 2016, while the LTM Capex to revenue ratio was 23 percent. Banglalink continues to invest in efficient data networks with 50 percent of the population covered by the 3G network at the end of Q2 2016, up from 33 percent at year-end 2015.


Kyivstar continued to roll-out its 3G network in Q2 2016, reaching 48 percent population coverage, up from 35 percent at yearend 2015. Q2 2016 Capex was UAH 727 million with a LTM capex to revenue ratio of 18 percent, and LTM operating cash flow margin, defined as EBITDA less capex, at a strong level of 34 percent in Q2 2016.


Capex was UZS 47 billion and the LTM Capex to revenue ratio was 14 percent resulting from a 14 percent growth in 3G sites.


In Q2 2016, WIND invested EUR 192 million, primarily in the expansion of the 4G/LTE network, as well as increasing the capacity and coverage of the existing HSPA+ network. 4G/LTE network now covers 62 percent of the population, up from 56 percent at year-end 2015.