VimpelCom posts 1Q 2010 net profit of $412 million

Russian mobile operator, VimpelCom, has posted a 1Q 2010 net profit of $412 million under US GAAP.

The bottom line compares with a net loss of $297 million for 1Q 2009, with adjusted OIBDA rising 10.9% year on year to $1.205 billion, on the back of the 13% year on year rise in revenues to $2.535 billion.

VimpelCom said the appreciation of its local currencies helped the turnaround in revenues, with the 3.4% quarter on quarter reduction reflecting normal seasonality. It added that mobile subscriptions have risen 6.5% year on year to more than 66 thousand with broadband subscriptions up 61% year on year to 2500.

VimpelCom CEO, Alexander Izosimov, said the figures, the first combining Vimpelcom with Ukrainian counterpart Kyivstar, showed the company in a sound position going forward.

“Our quarterly results give us confidence that the development of our business is on track. We remain focused on sustainable revenue growth and continued to deliver returns to our shareholders. Looking ahead, we will focus on completing the integration and organizational structure of our new company in order to deal with the changing industry landscape. We believe that the outlook for VimpelCom is bright and are confident that we will successfully leverage our new advantages.”