Vimpelcom lowers 2014 forecast, expects revenue, EBITDA to fall 3%-4%
MOSCOW. May 14 (Interfax) - Vimpelcom Ltd. has lowered its forecast for revenue and earnings before taxes, depreciation, and amortization (EBITDA) in 2014, and the telecommunications holding is now expecting both figures to fall 3%-4% in the year, Vimpelcom said in a statement.
The company had set a forecast earlier in January, expecting revenues and EBITDA in 2014 to be the same as in 2013.
Vimpelcom has also lowered its net debt to EBITDA ratio from the 2.3 projected in January to 2.4, which the company set following first quarter results.
The CAPEX to revenue ration was unchanged at 21%.
The company saw revenue fall 10% in Q1 to $5 billion from $5.6 billion the year before. EBITDA was down 11% at $2.1 billion, and net profit - 90% at $39 million. Generally weak operating results for Russian business had a negative effect on the company's financial results, as did intense price competition in Italy and an unstable macroeconomic situation in Ukraine and Pakistan, the Vimpelcom said. The company's quarterly revenue was down in the majority of countries where the company operates, expect for Bangladesh, Kazakhstan, Uzbekistan and Tajikistan.
In Russia, which accounts for 38% of Vimpelcom's revenue, the company is expecting continued pressure on its results throughout all of 2014, despite projected improvements in customer perception in the second half of the year.
Italy's Wind, which accounts for 31% of Vimpelcom's income, met an intense pricing situation, Vimpelcom said. Though Wind's results were better than its competitors, the Italian market will continue to decline this year, the company said.