Logo of Phnom Penh Post newspaper Phnom Penh Post - Vimpelcom reports SE Asia revenue boost

Vimpelcom reports SE Asia revenue boost

Vimpelcom reports SE Asia revenue boost

Vimpelcom, the parent of Cambodian mobile-phone operator Beeline, said revenues from its Southeast Asian subsidiaries more than doubled in the third quarter from the previous three months.

Revenues grew to US$2.57 million for the three months ended in September, up from just under $1 million in the second quarter of 2009, Russia’s second-largest mobile-phone company said in its third-quarter financial results released late Tuesday.
It lost $17.86 million in the two countries after expenses and capital expenditure were taken into account.

The published numbers do not break down revenues and losses for Cambodia and Vietnam, the two countries in the region where the Moscow-based company operates.

In an online conference call Tuesday, Vimpelcom Chief Executive Officer Boris Nemsic said Cambodian operations earned $3.54 million over the quarter, more than the reported figure for the two countries combined. Company officials did not return a request for comment on the discrepancy Wednesday.

“At this stage, the early results of our operations in Southeast Asia are somewhat volatile,” said Nesmic in the conference call, adding that the data released for the region were incomplete as a result. He said he anticipated full results would be available early next year.

Vimpelcom said net income for the quarter across the entire operation rose to $468 million, more than double the income of $226 million a year prior, aided by a gain from the rise in the Russian ruble against the US dollar.

A 3 percent rise of the rouble against the greenback over the quarter brought $24 million into the company’s coffers, although Victor Klimovich, an analyst at VTB Capital in Moscow, said the foreign-exchange gain was “significantly lower than expected”, adding that the firm must have hedged its position in foreign currencies, resulting in a lower gain.

Vimpelcom has recently been pursuing rapid development in Southeast Asia, and launched operations in Cambodia in May and in Vietnam in July.

Nesmic said the firm had increased the size of its network infrastructure to some 370 base stations across Cambodia, covering 47 percent of the domestic population at the end of September.

Vimpelcom is also buying 78 percent of Millicom Laos Co for $66 million, the purchase of which, Nesmic said, would be wrapped up by year-end.

ADDITIONAL REPORTING BY BLOOMBERG

MOST VIEWED

  • Temi tourism project approved by the CDC

    The $500.4 million Tourism, Ecological, Marine and International (Temi) tourism project has been approved by the Council for the Development of Cambodia (CDC), according to a notice on its Facebook page on Monday. The project is part of Chinese-owned Union City Development Group Co Ltd’s (

  • Rainsy will return at ‘favourable time’

    Opposition figure Sam Rainsy on Saturday suggested he would not return to Cambodia as he had previously promised, saying that like liberators King Father Norodom Sihanouk and Charles de Gaulle, he would only do so at a “favourable time”. “I will go back to Cambodia

  • US Embassy urged to stop ‘disrespecting sovereignty’

    The Ministry of Foreign Affairs and International Cooperation called on the US Embassy in Phnom Penh on Saturday to respect the Vienna Convention on Diplomatic Relations after it called former opposition leader Kem Sokha “an innocent man” – a move deemed to be “disrespecting Cambodia’s

  • NagaWorld casino sees net profit of more than $390M last year

    Phnom Penh’s NagaWorld casino posted a 53 per cent net profit increase last year at $390.6 million, a sum which is almost equal to the combined net profit of all Cambodian commercial banks in 2017. NagaWorld’s parent company, NagaCorp Ltd, is listed on the Hong Kong