Telecom service provider VimpleCom on Wednesday said its Capex (capital spending) rose 25 percent in the third quarter of 2013 to $1,040 million from $829 million in the same period last year.
During the first nine months of 2013, VimpleCom Capex decreased 3 percent to $2426 million from $2489 million.
VimpleCom says its Capex for the full year will be approximately 20 percent of revenue.
VimpleCom CEO Jo Lunder said the company would plan substantial investment in its mobile data networks in Russia in the final quarter.
Its capital spending in Q3 reflects the expansion of the mobile networks in Russia, Bangladesh and CIS, as well as the continued roll out of HSPA+ and backbone capacity to support data growth in Italy and acquisition of 3G license in Bangladesh.
In Italy, VimpleCom Capex reached EUR 153 million, which was invested primarily in the expansion of mobile HSPA+ coverage, capacity, and performance, as well as in the backhaul capacity to support the strong data growth.
In Ukraine, VimpleCom Capex was UAH 525 million in Q3.
VimpleCom mobile Internet focus
VimpleCom total revenue declined 1 percent to $5,685 million and profit dipped 53 percent to $255 million in the third quarter.
VimpleCom says its mobile service revenues in Q3 increased 3 percent. Third quarter revenues were negatively impacted by regulatory and governmental actions in the business unit in Africa & Asia and the MTR cuts in Italy.
Net income of VimpelCom decreased to $255 million from $538 million mainly due to lower profit before tax and higher tax expenses.
In Russia, mobile data revenue grew 30 percent, with 35 percent improvement in data revenues from small screens.
VimpleCom mobile subscriber base increased 3 percent to 58.1 million in Russia, while mobile broadband subscribers up 20 percent to 3.0 million.
In Italy, mobile Internet revenue rose 44 percent and fixed broadband grew 8 percent.
In CIS, mobile data subscriber base grew 16 percent to 13.0 million, while mobile data revenue increased 57 percent.
VimpleCom received 3G license in Bangladesh. It also received provisional 3G license in Algeria.
In Russia, the telecom operator enhanced 3G network with more base stations connected via IP. In Moscow, 93 percent base stations are connected via IP and it aims to reach 100 percent this year, while in Russia, the plan is to reach 82 percent from 73 percent at present.
VimpleCom says LTE will be commercially launched in Moscow and 3 other regions in Q4. LTE will be launched in 12 cities with population of more than 1 million in H1 2014, including St. Petersburg, Ekaterinburg, Novosibirsk, N. Novgorod etc.