Amsterdam-based mobile operator Vimpelcom said its fourth-quarter net loss narrowed, helped by a rise in customers and a fall in spending, but warned that 2015 would be challenging due to the economic crises in Russia and Ukraine.
The company, which owns the third largest mobile operator in Russia with the same name, said its net loss in the fourth quarter was $935 million, down from $3.9 billion a year earlier when it made hefty write-offs on its assets in Ukraine and Canada.
Vimpelcom's fourth-quarter revenue fell 21 percent to $4.4 billion, while earnings before interest, taxation, depreciation and amortization (EBITDA) rose 58 percent to $1.6 billion.
It said its total mobile customers number rose to 221.6 million from 216.9 million a year ago, while capital expenditures (capex) excluding licenses were down by 29 percent to $1.2 billion.
"We expect the operating environment to remain difficult in 2015, however I am confident that we have the right strategy to deliver on our targets," Vimpelcom Chief Executive Officer Jo Lunder said in a statement.
The company expects its EBITDA margin, excluding ruble weakening and asset disposals, to be flat or slightly lower this year compared with 40.6 percent in 2014.
"The guidance suggests that the challenging outlook for the business remains intact," VTB Capital said in a note.
Vimpelcom also said it targeted earnings per share in the range of $0.35-0.40 after a loss of $0.53 per share in 2014.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
