6 May 2019 14:00

VimpelCom's Q1 revenue grew 4.4% to 69.25 bln rubles

MOSCOW. May 6 (Interfax) - The revenue of PJSC VimpelCom in Q1 grew 4.4% year-on-year, reaching 69.25 billion rubles, according to the VEON holding, which controls VimpelCom.

Growth took place "mainly as a result of the strong increase in sales of equipment and accessories and positive ARPU [average revenue per user] dynamics," VEON said in its Q1 report. Revenue from sales of equipment and accessories grew 88% to 5.6 billion rubles. Increased revenue led to higher EBITDA, it said.

EBITDA grew 1.3% to 25.53 billion rubles (with a margin of 36.9%, representing a decrease "driven by the change in revenue mix as a result of the strong growth in sales of equipment and accessories, which are characterized by lower margins"). Taking into account adjustments made to the International Financial Reporting Standards (IFRS), the indicator grew 22.7% to 30.93 billion rubles, and EBITDA margin rose to 44.7% from 38% a year earlier.

VimpelCom's capex excluding licenses grew 66.1% to 14.96 billion rubles "as a result of increased network investments and investments related to the Yarovaya law [mandating the storage of data]," VEON said.