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Vimpelcom posts Q4 loss on Canada, Ukraine writedowns
2014-03-06 09:10:00| Telecompaper Headlines
(Telecompaper) Vimpelcom reported a net loss of USD 2.660 billion for the fourth quarter, versus a profit of USD 195 million a year earlier, as the company wrote down the value of its investments in Ukraine and Canada. Revenues fell 7 percent to USD 5.554 billion, while EBITDA dropped a slower 3 percent to USD 2.372 billion, helping the margin increase to 42.7 percent. Sales were down in all its divisions apart from the CIS, due to regulatory and macroeconomic pressures, negative currency effects and tough competition in markets like Italy. On an organic basis, quarterly revenues were down 4 percent in Russia, 10 percent lower in Italy, 9 percent less in Ukraine and 8 percent lower in Africa and Asia. Over the full year 2013, Vimpelcom increased capex 3 percent to USD 4.233 billion or 19 percent of revenues, as it focused on expanding its broadband networks. The capex-sales ratio is expected to increase further in 2014 to 21 percent, as the roll-out of 3G and 4G continues in key markets. Operating cash flow fell 5 percent to USD 5.386 billion in 2014, and the net debt ratio increased slightly to 2.3x EBITDA. The company reiterated its plan to sharply reduce dividends until the debt ratio drops to 2.0. Vimpelcom also maintained its outlook issued in January for stable revenues and EBITDA this year and net debt around 2.3x EBITDA at year-end.
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Category:Telecommunications