Vimpelcom doubles 2009 profit to €808m
Russia's VImpelcom more than doubled its net profit in 2009, as strict cost cutting compensated for slumping revenue.
The company posted a net income of $1.1 billion (€808.7 million), a 115% improvement from its recession-racked 2008 result, despite a 14% fall in revenue to $8.7 billion.
Strict cost controls helped the carrier improve service margins to 49.1% from 48% in 2008.
“We committed to our shareholders [in 2008] that we would preserve cash, improve liquidity, control costs, and integrate the newly acquired fixed-line business, all while maintaining our leading market positions,” Vimpelcom CEO Boris Nemsic said.
“I am very pleased that we have delivered on each of these commitments, which is clearly demonstrated by our full-year results.”
The company added 3.6 million mobile subscribers – bringing its total to 64.6 million - and 2.3 million broadband subscribers. It also launched operations in Cambodia and Vietnam under the Beeline brand during the year.