27 May 2004 13:18
Vimpelcom Announces First Quarter 2004 Financial and Operating Results
MOSCOW and NEW YORK, May 27 /PRNewswire-FirstCall/ -- Open Joint Stock Company "Vimpel-Communications"
("VimpelCom" or the "Company") , a leading provider of wireless telecommunications services in
Russia, today announced its financial and operating results for the first quarter ended March 31, 2004. During the first
quarter, the Company continued its rapid growth in new subscribers and strengthened its financial performance, with the
regions growing significantly faster than Moscow. Consolidated financial statements of VimpelCom and consolidated
financial statements of VimpelCom- Region, VimpelCom's subsidiary for regional development, are attached.
Commenting on today's announcement, Alexander Izosimov, Chief Executive Officer of VimpelCom, said, "We are
pleased with our first quarter results. In a very competitive market that is now the fastest growing wireless market in
the world we added approximately 2 million subscribers, and we increased our OIBDA margin to 48.4%, the highest level
achieved since our listing on the New York Stock Exchange in 1996. We were able to achieve these results by successfully
implementing our strategy of national expansion."
Key Financial and Operating Indicators
(Definitions as well as reconciliation of each of OIBDA, OIBDA margin, ARPU and SAC to its most directly comparable
U.S. GAAP financial measurement are presented below in the attachment) Mar. 31, Mar. 31, Change 2004 2003 Y-on-Y (%)
(three months (three months ended) ended) Net operating revenues (US$,000) 417,697 244,437 70.9% OIBDA (US$,000) (1)
202,025 107,936 87.2% OIBDA margin (2) 48.4% 44.2% -- Gross margin (US$,000) (3) 342,141 196,570 74.1% Gross margin
percentage (4) 81.9% 80.4% -- Net income (US$,000) 76,131 41,387 83.9% Net income per share (US$) 1.90 1.09 74.3% Net
income per ADS (US$) (5) 1.43 0.82 74.4% ARPU (US$) (6) 10.8 13.5 -20.0% MOU, revised definition (min) (7) 91.4 87.5
4.5% SAC (US$) (8) 16.8 20.8 -19.2%
Significant improvements in VimpelCom's financial and operating results in the first quarter of 2004, as
compared with the first quarter of 2003, were achieved largely as a result of rapid subscriber growth combined with the
effects of economies of scale, efficient cost control and lower acquisition costs per subscriber in the regions outside
of Moscow. When compared with the fourth quarter of 2003, strong seasonal effects (reduced roaming revenue and reduced
minutes of use) resulted in a reduced rate of growth in net operating revenues. On the other hand, margins improved both
on OIBDA and net income levels as compared with the fourth quarter of 2003.
The Company's financial results include the activities in the Moscow license area and in the regions. Net
operating revenues, excluding inter-company transactions, for Moscow stand-alone and the regions in the first quarter of
2004 were $256.3 million and $161.4 million, respectively. Net income for Moscow stand-alone and in the regions in the
first quarter of 2004 was $60.0 million and $26.8 million, respectively.
Selling, general and administrative ("SG&A") expenses, as a percentage of net operating revenues,
improved to 33.0% reported in the first quarter of 2004 as compared with 34.9% in the first quarter of 2003. The
decrease in SG&A from $148.8 million in the fourth quarter of 2003 to $138.0 million in the first quarter of 2004
was in part due to a decrease in aggregate subscriber acquisition costs from $57.2 million in the fourth quarter of 2003
to $50.1 million in the first quarter of 2004.
VimpelCom's total capital expenditures for the first quarter of 2004 were approximately $157 million, spent
entirely for the purchase of property and equipment.
In January 2004, VimpelCom adopted a new depreciation policy. Based on periodic internal studies of the useful
economic lives of the Company's property and equipment, the Company changed the estimated useful life of GSM
telecommunications equipment from 9.5 to 7 years.
Beginning with the first quarter of 2004, the Company will use a new definition of MOU based on total minutes of
usage (including both billable minutes of usage and free minutes of usage) rather than only billable minutes as used in
the previous definition. This approach is similar to that currently used by the majority of cellular operators in and
outside of Russia and the Company believes the new definition better reflects the relationship between traffic, capital
expenditures, revenues and operating costs. The tables with the quarterly MOU numbers for 2003 calculated under both the
new and previous definitions are presented below in the definition section. The MOU figures used throughout this release
have been calculated under the new definition.
The Company's MOU in the first quarter of 2004 was 91.4 minutes, an increase of approximately 4.5% compared to
87.5 minutes recorded in the first quarter of 2003. As compared with 96.8 minutes recorded for the fourth quarter of
2003, MOU declined by 5.6%, primarily due to seasonal effects. ARPU for the first quarter of 2004 was approximately
$10.8, a 20.0% decrease from the $13.5 reported for the first quarter of 2003 and a 13.6% decrease from the $12.5
reported for the fourth quarter of 2003.
The decline in ARPU was due to seasonal effects, which are most pronounced in the first quarter, and a growing
proportion of regional subscribers who generate lower ARPU than Moscow subscribers. In addition, the decline in ARPU was
caused by strong competition which resulted in tariff reductions and an effective decline in average price per minute.
An increase in the proportion of intra-network traffic also led to an effective decline in average price per minute,
although this decline was mitigated by the absence of interconnect charges. Key Subscriber Statistics As of As of Change
As of Change Mar. 31, 2004 Mar. 31, 2003 Y-on-Y Dec. 31, Q-on-Q (%) (%) 2003 Moscow license area 6,042,300 3,945,600
53.1% 5,659,600 6.8% Contract 826,800 732,000 13.0% 819,900 0.8% Prepaid 5,215,500 3,213,600 62.3% 4,839,700 7.8%
Regions 7,329,200 2,242,400 226.8% 5,777,300 26.9% Total Number of Subscribers 13,371,500 6,188,000 116.1% 11,436,900
16.9% Churn (quarterly) 8.6% 9.6% -- 9.7% --
Rapid subscriber growth continued in the first quarter of 2004, particularly in the regions. As of May 27, 2004,
VimpelCom's total number of subscribers reached approximately 14.93 million, with approximately 6.22 million
subscribers in the Moscow license area and 8.72 million in the regions outside Moscow.
Using independent sources to estimate the number of subscribers of the Company's competitors, VimpelCom
estimates that its market share in the Moscow license area was 48.4% at the end of the first quarter of 2004, compared
to the Company's estimated market share of 49.5% reported at the end of the first quarter of 2003. On a nationwide
basis, VimpleCom estimates its market share at 32.0% at the end of the first quarter of 2004, compared to 29.0%
estimated at the end of the first quarter of 2003.
The Company's quarterly churn rate in the first quarter of 2004 was 8.6%, compared to the Company's churn
rate of 9.6% reported for the same period in 2003. Marketing activities in the past few quarters resulted in some
improvement in churn in the first quarter of 2004. Loyalty and retention, especially in the Company's more
saturated markets, remain one of VimpelCom's priorities going forward.
The Company's management will discuss its first quarter 2004 results during a conference call and slide
presentation on May 27, 2004 at 6:30 pm Moscow time (10:30 am EDT in New York). The call and slide presentation may be
accessed via webcast at the following URL address http://www.vimpelcom.com/. The conference call replay and the slide
presentation webcast will be available through June 3, 2004 and June 28, 2004, respectively. The slide presentation will
also be available for download on VimpelCom's website http://www.vimpelcom.com/.
VimpelCom is a leading provider of telecommunications services in Russia, operating under the "Bee Line
GSM" brand. The VimpelCom Group's license portfolio covers approximately 92% of Russia's population (134
million people), including the City of Moscow, the Moscow Region and the City of St. Petersburg. VimpelCom was the first
Russian company to list its shares on the New York Stock Exchange ("NYSE"). VimpelCom's ADSs are listed
on the NYSE under the symbol "VIP".
This press release contains "forward-looking statements", as the phrase is defined in Section 27A of the
Securities Act and Section 21E of the Exchange Act. These statements relate to the Company's development plans.
These and other forward-looking statements are based on management's best assessment of the Company's
strategic and financial position and of future market conditions and trends. These discussions involve risks and
uncertainties. The actual outcome may differ materially from these statements as a result of unforeseen developments
from competition, governmental regulation of the wireless telecommunications industry, general political uncertainties
in Russia and general economic developments in Russia, the Company's ability to continue to grow its overall
subscriber base, continued volatility in the world economy and other factors. As a result of such risks and
uncertainties, there can be no assurance that the effects of competition or current or future changes in the political,
economic and social environment or current or future regulation of the Russian telecommunications industry will not have
a material adverse effect on the VimpelCom Group. Certain factors that could cause actual results to differ materially
from those discussed in any forward-looking statements include the risks described in the Company's Annual Report
on Form 20-F for the year ended December 31, 2003 and other public filings made by the Company with the United States
Securities and Exchange Commission, which risk factors are incorporated herein by reference. VimpelCom disclaims any
obligation to update developments of these risk factors or to announce publicly any revision to any of the
forward-looking statements contained in this release, or to make corrections to reflect future events or developments. -
Definitions and Tables attached- Definitions (1) OIBDA is a non-U.S. GAAP financial measure. OIBDA, previously referred
to as EBITDA by the Company, is defined as operating income before depreciation and amortization. The Company believes
that OIBDA provides useful information to investors because it is an indicator of the strength and performance of our
business operations, including our ability to finance capital expenditures, acquisitions and other investments and our
ability to incur and service debt. While depreciation and amortization are considered operating costs under U.S. GAAP,
these expenses primarily represent the non-cash current period allocation of costs associated with long-lived assets
acquired or constructed in prior periods. Our OIBDA calculations are commonly used as bases for some investors, analysts
and credit rating agencies to evaluate and compare the periodic and future operating performance and value of companies
within the wireless telecommunications industry. OIBDA should not be considered in isolation as an alternative to net
income, operating income or any other measure of performance under U.S. GAAP. OIBDA does not include our need to replace
our capital equipment over time. Reconciliation of OIBDA to operating income, the most directly comparable U.S. GAAP
financial measure, is presented below in the tables section. (2) OIBDA margin is OIBDA expressed as a percentage of net
operating revenues. Reconciliation of OIBDA margin to operating income as a percentage of net operating revenues, the
most directly comparable U.S. GAAP financial measure, is presented below in the tables section. (3) Gross margin is
defined as net operating revenues less selected operating costs (specifically, service costs, cost of handsets and
accessories sold and cost of other revenues). (4) Gross margin percentage is gross margin expressed as a percentage of
net operating revenues. (5) Each ADS represents 0.75 of one share of common stock. (6) ARPU (Monthly Average Revenue per
User), a non-U.S. GAAP financial measure, is calculated for each month in the relevant period by dividing the
Company's service revenue during that month, including roaming revenue, but excluding revenue from connection fees,
sales of handsets and accessories and other non-service revenue, by the average number of the Company's subscribers
during the month. Reconciliation of ARPU to service revenues and connection fees, the most directly comparable U.S. GAAP
financial measure, is presented below in the tables section. The Company believes that ARPU provides useful information
to investors because it is an indicator of the performance of the Company's business operations and assists
management in budgeting. The Company also believes that ARPU provides management with useful information concerning
usage and acceptance of the Company's services. ARPU should not be viewed in solation or an alternative to other
figures reported under U.S. GAAP. (7) MOU (Monthly Average Minutes of Use per User) is calculated for each month of the
relevant period by dividing the total number of minutes of usage for incoming and outgoing calls during that month
(excluding guest roamers) by the average number of subscribers during the month. (8) SAC (Average Acquisition Cost Per
User), a non-U.S. GAAP financial measure, is calculated as dealer commissions, advertising expenses and handset
subsidies for the relevant period divided by the number of gross sales during the relevant period. Reconciliation of SAC
to selling, general and administrative expenses, the most directly comparable U.S. GAAP financial measure, is presented
below in the tables section. The Company believes that SAC provides useful information to investors because it is an
indicator of the performance of the Company's business operations and assists management in budgeting. The Company
also believes that SAC assists management in quantifying the incremental costs to acquire a new subscriber. SAC should
not be viewed in isolation or an alternative to other figures reported under U.S. GAAP. MOU numbers for 2003 calculated
under the new definition (including both billable and free minutes of usage) 1Q2003 2Q2003 3Q2003 4Q2003 MOU, blended
(min) 87.5 100.2 104.3 96.8 MOU Moscow 90.3 107.4 115.2 108.0 Contract (Moscow) 258.6 297.3 320.9 343.0 Prepaid (Moscow)
50.8 65.9 74.7 66.2 MOU, Regions 81.8 88.7 89.8 84.6 MOU numbers for 2003 calculated under the prior definition
(including only billable minutes of usage) 1Q2003 2Q2003 3Q2003 4Q2003 MOU, blended (min) 81.5 93.8 92.7 89.3 MOU Moscow
78.9 95.1 92.5 84.7 Contract (Moscow) 237.2 273.7 284.2 303.1 Prepaid (Moscow) 41.7 56.0 54.7 45.9 MOU, Regions 86.9
91.6 93.0 94.4 Open Joint Stock Company "Vimpel-Communications" Unaudited Condensed Consolidated Statements of
Income Three months ended March 31, 2004 2003 (In thousands of US dollars, except per share (ADS) amounts) Operating
revenues: Service revenues and connection fees US$ 400,903 US$ 230,099 Sales of handsets and accessories 15,774 13,426
Other revenues 1,020 912 Total operating revenues 417,697 244,437 Operating expenses Service costs 62,365 37,160 Cost of
handsets and accessories sold 13,191 10,707 Selling, general and administrative expenses 138,013 85,310 Depreciation
57,337 31,678 Amortization 9,143 7,372 Provision for doubtful accounts 2,103 3,324 Total operating expenses 282,152
175,551 Operating income 135,545 68,886 Other income and expenses: Other income 354 574 Other expenses (403) (432)
Interest income 1,501 1,998 Interest expense (13,856) (16,036) Net foreign exchange gain (loss) 1,671 1,327 Total other
income and expenses (10,733) (12,569) Income before income taxes and minority interest 124,812 56,317 Income taxes
expense 36,699 14,912 Minority interest in net earnings (losses) of subsidiaries 11,982 18 Net income US$ 76,131 US$
41,387 Net income per common share US$ 1.90 US$ 1.09 Net income per ADS equivalent US$ 1.43 US$ 0.82 Weighted average
common shares outstanding (thousands) 40,172 38,073 Open Joint Stock Company "Vimpel-Communications" Condensed
Consolidated Balance Sheets March 31, December 31, 2004 2003 (In thousands of US dollars) Assets Current assets: Cash
and cash equivalents 130,552 US$ 157,611 Accounts receivable 109,386 113,092 Other current assets 271,775 255,540 Total
current assets 511,713 526,243 Non-current assets Property and equipment, net 1,530,372 1,460,542 Telecommunication
licenses, net 98,799 103,817 Other intangible assets, net 59,919 59,369 Other assets 175,260 152,261 Total non-current
assets 1,864,350 1,775,989 Total assets US$ 2,376,063 US$ 2,302,232 Liabilities and shareholders' equity Current
liabilities: Accounts payable US$ 172,047 158,467 Due to related parties 6,290 8,603 Customer advances and deposits
196,323 181,475 Deferred revenue 2,596 2,701 Ruble denominated bonds payable 105,317 101,852 Bank loans, current portion
30,691 35,343 Capital lease obligations, current portion 8,451 6,587 Equipment financing obligations, current portion
73,622 70,935 Accrued liabilities 100,298 127,689 Total current liabilities 695,635 693,652 Deferred income taxes 31,634
34,380 Bank loans, less current portion 331,490 330,112 Capital lease obligations, less current portion 7,924 9,154
Accrued liabilities, less current portion 4,113 4,046 5.5% Senior convertible notes due July 2005 -- -- Equipment
financing obligations, less current portion 36,288 53,008 Minority interest 193,104 179,664 Shareholders' equity
1,075,875 998,216 Total liabilities and shareholders' equity US$ 2,376,063 US$ 2,302,232 Unaudited Condensed
Consolidated Statements of Cash Flows Three months ended March 31, 2004 2003 (In thousands of US dollars) Net cash
provided by operating activities US$ 116,669 US$ 75,065 Proceeds from bank and other loans 7,189 56,962 Payments of fees
in respect of debt issue (1,249) Repayment of bank loans (10,587) (20,910) Repayment of equipment financing obligations
(14,265) (23,824) Repayment of lease obligations (131) (439) Net cash provided by (used in) financing activities
(17,794) 10,540 Purchase of property and equipment (107,536) (87,799) Purchase of StavTeleSot stock, net of cash
acquired of US$658 (38,143) Purchase of intangible assets (4,039) (5,435) Purchase of other assets (13,550) (7,969) Net
cash used in investing activities (125,125) (139,346) Effect of exchange rate changes on cash (809) 1,442 Net decrease
in cash (27,059) (52,299) Cash and cash equivalents at beginning of period 157,611 263,657 Cash and cash equivalents at
end of period US$ 130,552 US$ 211,358 Supplemental cash flow information Non-cash activities: Equipment acquired under
financing agreements US$ 1,659 US$ 24,077 Accounts payable for equipment and other long-lived assets 66,505 50,137
Accrued debt and equity offering costs 236 294 Operating activities financed by sale of treasury stock -- 1,262
Acquisitions: Fair value of assets acquired -- 66,634 Difference between the amount paid and the fair value of net
assets acquired -- (4,699) Cash paid for the capital stock -- (38,801) Liabilities assumed US$ -- US$ 23,134
Reconciliation of VimpelCom OIBDA to operating income (In thousands of US dollars) Three months ended March 31, December
31, March 31, 2004 2003 2003 OIBDA 202,025 186,893 107,936 Depreciation (57,337) (42,776) (31,678) Amortization (9,143)
(9,083) (7,372) Operating income 135,545 135,034 68,886 Reconciliation of VimpelCom OIBDA margin to operating income as
percentage of net operating revenues Three months ended March 31, December 31, March 31, 2004 2003 2003 OIBDA margin
48.4% 45.8% 44.2% Less: Depreciation as percentage of net operating revenues (13.7%) (10.5)% (13.0%) Less: Amortization
as percentage of net operating revenues (2.2%) (2.2)% (3.0%) Operating income as percentage of net operating revenues
32.5% 33.1% 28.2% Reconciliation of SAC to selling, general and administrative expenses (In thousands of US dollars,
except for SAC and subscriber amounts) Three months ended March 31, December 31, March 31, 2004 2003 2003 Selling,
general and administrative expenses 138,013 148,764 85,310 Less: General and administrative expenses 87,865 91,533
56,643 Sales and marketing expenses, including 50,148 57,231 28,667 advertising & marketing expenses 13,245 16,236
9,445 dealers' commission expense 36,903 40,995 19,222 New gross subscribers,'000 2,979 3,170 1,377 Subscriber
Acquisition Cost (SAC) (US$) 16.8 18.1 20.8 Reconciliation of ARPU to service revenue and connection fees (In thousands
of US dollars, except for ARPU and subscriber amounts) Three months ended March 31, December 31, March 31, 2004 2003
2003 Service revenue and connection fees US$ 400,903 US$ 386,322 US$ 230,099 Less: Connection fees 185 202 337 Less:
Revenue from rent of fiber-optic channels 549 417 372 Service revenue used to calculate ARPU 400,169 385,703 229,390
Average number of subscribers,'000 12,318 10,277 5,658 Average revenue per subscriber per month (US$) 10.8 12.5
13.5 Open Joint Stock Company "VimpelCom-Region" Unaudited Condensed Consolidated Statements of Income Three
months ended March 31, 2004 2003 (In thousands of US dollars, except per share (ADS) amounts) Operating revenues:
Service revenues and connection fees US$ 164,248 US$ 55,902 Sales of handsets and accessories 8,624 8,723 Other revenues
1,300 535 Total operating revenues 174,172 65,160 Operating expenses Service costs 32,252 15,592 Cost of handsets and
accessories sold 8,180 8,496 Equipment lease 2,562 2,221 Selling, general and administrative expenses 55,805 21,289
Network maintenance 4,578 1,811 Depreciation and amortization 24,360 11,310 Provision for doubtful accounts 872 361
Total operating expenses 128,609 61,080 Operating income 45,563 4,080 Other income and expenses: Other income 16 240
Other expenses (138) (205) Interest income 240 152 Interest expense (7,008) (3,306) Net foreign exchange gain (loss)
(32) (292) Total other income and expenses (6,922) (3,411) Income before income taxes and minority interest 38,641 669
Income taxes expense 11,909 (1,373) Minority interest in net earnings (losses) of subsidiaries 60 (19) Net income US$
26,672 (US$ 723) *) Net income of VimpelCom-Region as a legal entity differs from the $26.785 million net income
reported above in this press release for the regional segment for the first quarter of 2004. The difference is caused by
the fact that the financial statements of Bee-Line Samara are included in the regions for segment reporting purposes,
but are not included in the consolidated financial statements of VimpelCom- Region. Bee-Line Samara operates in the
Samara region but, for historical reasons, is owned directly by VimpelCom. The following table provides reconciliation
between these figures (all numbers are in thousands of US$): Three months ended Mar. 31, 2004 Net income of
VimpelCom-Region 26,672 Net income of BeeLine-Samara 598 Net effect of transactions between VimpelCom-Region and
BeeLine-Samara (485) Net income of VimpelCom's regional segment 26,785
Operating revenue of VimpelCom-Region as a legal entity differs from the $161.401 million operating revenues for the
regional segment excluding inter-company transactions, reported above in this press release for the first quarter of
2004. The following table provides reconciliation between these figures (all numbers are in thousands of US$): Three
months ended Mar. 31, 2004 Operating revenue of VimpelCom-Region 174,172 Operating revenue of Bee-Line-Samara 7,967 Net
effect of transactions between VimpelCom-Region and Bee-Line-Samara (4,114) Operating revenue of VimpelCom's
regional segment 178,025 Inter-company operating revenue of VimpelCom-Region and Bee-Line-Samara (16,624) Regional
segment operating revenue excluding inter-company transactions 161,401 Open Joint Stock Company
"VimpelCom-Region" Condensed Consolidated Balance Sheets March 31, December 31, 2004 2003 (In thousands of US
dollars) Assets Current assets: Cash and cash equivalents US$ 58,106 US$ 42,729 Trade accounts receivable 15,240 22,726
Other current assets 167,058 137,529 Total current assets 240,404 202,984 Non-current assets: Property and equipment,
net 679,241 624,306 Telecommunication licenses and allocation of frequencies, net 83,086 87,175 Other intangible assets,
net 22,178 20,383 Other assets 84,056 62,995 Total non-current assets 868,561 794,859 Total assets US$ 1,108,965 US$
997,843 Liabilities and shareholders' equity Current liabilities: Accounts payable US$ 73,053 US$ 73,345 Due to
related parties 95,290 71,420 Customer advances and deposits 65,471 41,916 Deferred revenue 873 713 Rouble denominated
bonds payable 105,317 101,852 Bank loans, current portion 8,072 4,710 Capital lease obligation, current portion 0 0
Equipment financing obligations, current portion 23,482 17,078 Accrued liabilities 16,108 16,076 Total current
liabilities 387,666 327,110 Deferred income taxes 22,077 24,713 Bank loans, less current portion 66,963 66,500 Long-term
loans due to VimpelCom 206,228 176,231 Equipment financing obligations, less current portion 9,296 16,097 Accrued
liabilities 2,765 2,718 Minority interest 412 350 Shareholders' equity 413,558 384,124 Total liabilities and
shareholders' equity US$ 1,108,965 US$ 997,843 Open Joint Stock Company "VimpelCom-Region" Condensed
Consolidated Statements of Cash Flows Three months ended March 31, 2004 2003 (In thousands of US dollars) Net cash
provided by (used in) operating activities US$ 59,977 US$ 2,559 Proceeds from bank and other loans 4,359 39,161 Proceeds
from loans from VimpelCom 29,937 39,223 Repayment of bank and other loans (569) (11,227) Repayment of equipment
financing obligations (1,879) (13,909) Repayment of capital lease obligations (119) Net cash provided by financing
activities 31,848 53,129 Purchase of property and equipment (57,898) (33,213) Purchase of StavTeleSot stock, net of cash
acquired of US$658 (38,143) Purchase of intangible assets (3,236) (4,164) Purchase of other assets (14,356) -- Net cash
used in investing activities (75,490) (75,520) Effect of exchange rate changes on cash (958) 67 Net (decrease) increase
in cash 15,377 (19,765) Cash and cash equivalents at beginning of year 42,729 52,703 Cash and cash equivalents at end of
year US$ 58,106 US $32,938 Reconciliation of VimpelCom-Region OIBDA to operating income (In thousands of US dollars)
Three months ended March 31, December 31, March 31, 2004 2003 2003 OIBDA 69,923 62,345 15,390 Depreciation (18,194)
(11,740) (6,760) Amortization (6,166) (5,995) (4,550) Operating income 45,563 44,610 4,080 Reconciliation of
VimpelCom-Region OIBDA margin to operating income as percentage of net operating revenues Three months ended March 31,
December 31, March 31, 2004 2003 2003 OIBDA margin 40.1% 40.2% 23.6% Less: Depreciation as percentage of net operating
revenues (10.4)% (7.6)% (10.4)% Less: Amortization as percentage of net operating revenues (3.5)% (3.9)% (7.0)%
Operating income as percentage of net operating revenues 26.2% 28.7% 6.2% VimpelCom
CONTACT: Valery Goldin of VimpelCom (Moscow), +011-7-095-974-5888, vgoldin@vimpelcom.com, or Christopher Mittendorf
of Edelman Financial Worldwide, +1-212-704-8134, christopher.mittendorf@edelman.com for VimpelCom
[PR Newswire (US)] |
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