 COMPANY
PROFILE |
VimpelCom is a leading provider of wireless telecommunications
services in Russia, operating under the "Bee
Line" brand, which is one of the most recognized
brand names in
Russia. The Group's license portfolio covers approximately
92% of Russia's population (134 million people),
including Moscow and St. Petersburg.
VimpelCom has always been a pioneer in wireless
telecommunications in Russia and is a market leader
in offering the latest in voice communications
technology and data services, including wireless
"infotainment" services, location-based
services, mobile portal and wireless Internet
access through "BeeOnLine". The Company
provides GPRS (General
Packet Radio Services) with per byte billing and
GPRS roaming capabilities.
As of May 29, 2003, VimpelCom's total number
of subscribers reached approximately 6.92 million,
with approximately 4.22 million subscribers in
the Moscow license area and 2.70 million in the
regions outside Moscow.
VimpelCom was the first Russian company to list
its shares on the NYSE in November 1996. VimpelCom's
ADSs are listed on the NYSE under the symbol "VIP".
VimpelCom was also the first Russian company to
issue U.S. SEC-registered convertible notes in
July 2000. VimpelCom's convertible notes are listed
on the NYSE under the symbol "VIP 05".
Since its listing on the NYSE, VimpelCom has
been the leader in corporate governance and transparency
in Russia, being ranked many times number one
in corporate governance by various independent
institutions and organizations.
| FINANCIAL
AND OPERATING RESULTS |
For the quarter ended March 31, 2003, VimpelCom
reported net operating revenues of $244.4 million,
a 68.5% increase from the $145.1 million reported
for the same period in 2002; EBITDA of $107.9
million, a 70.6% increase from the $63.3 million
reported for the same period in 2002; and net
income of $41.4 million, an increase of 47.6%
from the $28.0 million reported for the first
quarter of 2002. The Company's EBITDA margin for
the first quarter of 2003 was approximately 44.2%
compared to approximately 43.6% for the same period
of 2002.
Using independent sources to estimate the number
of subscribers of the Company's competitors in
the Moscow license area, VimpelCom estimates that
its market share in the Moscow license area was
49.5% at the end of the first quarter of 2003.
On a nationwide basis, independent sources estimate
VimpelCom's market share at 29.0% at the end of
the first quarter of 2003.
|
Subscriber growth
in Moscow
Total operating revenues
US$ in millions in US GAAP
Company's vision
VimpelCom's objective is to become the leading
Russian telecommunications company, providing
mobile voice and data services. VimpelCom's strategy
aims at securing long-term profitable growth for
the Company with a dedicated focus on service
quality and product innovation.
As Moscow gradually approaches saturation, VimpelCom
will strive to further improve the profitability
of its Moscow operations, to secure the loyalty
of its existing subscribers as well as to continue
to grow its customer base.
At the same time, further growth in cellular
business will primarily come from the regions.
Accordingly, VimpelCom, in its drive to become
a full-fledged national operator, will continue
its expansion, providing coverage and services
to a substantial part of the 117 million people
in its licensed territories outside of Moscow.
The two basic premises of VimpelCom's national
expansion strategy are (i) to build a unified
network across Russia with the same business processes
and solutions for network operation and control,
IT, marketing, distribution, customer service
and billing; and (ii) to employ primarily organic
"greenfield" growth augmented by selective
acquisitions.
VimpelCom sees this approach as the most cost-efficient
way of building its business nationwide, with maximum
utilization of economies of scale. |
