Wednesday, March 30, 2011

Investopedia: VimpelCom Looking To Join The Big Leagues

Mergers and acquisitions are in vogue in the mobile phone world, and not just with AT&T's (NYSE:T) acquisition of Deutsche Telekom's T-Mobile. Companies around the globe are shuffling their decks and Russia's VimpelCom (NYSE:VIP) has been among the most active. Once the dust clears, this company looks to be one of the largest operators in the world, and a decent way for retail investors to play emerging markets with few publicly-traded companies of their own. 

A Mixed Close to the Year  
VimpelCom posted 22% revenue growth in the final quarter of the year, beating the average analyst estimate. Growth was helped by higher subscriber counts and improved usage stats in the company's peripheral operating areas (CIS, Kazakhstan, Uzbekistan and so on), growth that more than offset flatter (albeit still positive) performance in Russia and Ukraine.
Profitability was more mixed. VimpelCom reported OIBDA (similar to EBITDA) growth of 15% and overall profitability was a bit below the average expectations. The company also significantly ramped up its capital spending in the back half of the year as part of its overall plan to regain market share in its core markets. 



To continue to the full piece, please click on the link:
http://stocks.investopedia.com/stock-analysis/2011/VimpelCom-Looking-To-Join-The-Big-Leagues-VIP-T-MBT-TELNY-MICC0330.aspx

No comments: