A NET loss of US$20.5 million was attributed to the Southeast Asian operations of telecommunications giant VimpelCom for the second quarter ending June, despite record revenues across the region.

The data were revealed in an earnings report issued by the Russian group – owner of Cambodia’s Beeline and operations in Vietnam– late last week. A breakdown of the group’s Southeast Asia results, which did not separate data by country, recorded a $20.5 million net loss. This compared to an $18.5 million loss in quarter one, but was much less than the $31.7 million loss seen in quarter four 2009.

Operating income before depreciation and amortisation was negative $8.1 million, a slight improvement on the $8.6 loss reported in quarter one.

Meanwhile, revenues grew to $5.5 million in the second quarter, up 25 percent from $4.4 million in the first quarter, and $900,000 a year ago.

Despite the mixed results, an accompanying statement remained upbeat about the region’s future, “We continue developing our operations in Southeast Asia and remain optimistic regarding the market potential in this region,” it said.

However, some of its assets have seen development stall.

VimpelCom admitted the group had to “temporarily slow down” its Vietnamese development while “optimal” financing was determined with its joint-venture partner.

Group Chief Executive Officer, Alexander Izosimov, also highlighted restructure as a driver for future change.

“We streamlined our structure, forming four operating segments – Russia, Ukraine, CIS and Southeast Asia – with new headquarters in Amsterdam," he said.

"This will allow the operating companies to focus on business development in their markets."

Representatives from Beeline Cambodia did not respond to emailed requests for comment yesterday.