VimpelCom today said its Capex (telecom investment) fell 38 percent to $460 million in Q1 2015.
The telecom service provider plans to maintain its strategy to invest in high-speed data networks to capture mobile data growth, including the continued rollout of 4G/LTE networks in Russia and Italy and 3G networks in Algeria, Bangladesh, Pakistan and Ukraine. The company expects to invest 20 percent of its annual revenue towards Capex in 2015.
The Q1 2015 revenue of VimpelCom dropped 30 percent to $3,515 million – primarily due to currency fluctuations, while its net income was $184 million. Total mobile customers increased 4.8 million to 218.1 million.
VimpelCom CEO JeanYves Charlier said: “On an organic basis, service revenue declined 2 percent and EBITDA by 6 percent, mainly due to the delayed launch of 3G services in Algeria and continuing market weakness in Italy. This was partly offset by service revenue growth in Bangladesh and Ukraine.”
Russia
Beeline invested in high-speed data networks in Russia. Its deal with rival MTS for development and operation of 4G/LTE networks will ensure 30 percent to 40 percent savings in construction costs. The company increased the number of 3G base stations by 14 percent to 31,000 and operates 4G/LTE in 52 regions.
Italy
WIND has invested 172 million euros in expanding its 4G LTE coverage, reaching 38 percent of the population, as well as in increasing the capacity and coverage of the existing HSPA+ network.
Algeria
Djezzy invested in the 3G network. Capex was DZD 4.2 billion and Capex to revenue was 14 percent. Djezzy’s 3G services were available in 25 provinces, including the four largest provinces in terms of population.
Pakistan
Telecom Capex decreased to PKR 2.6 billion as the 2G network modernization completed in 2014. However, the company continues to invest in 3G network rollout.
Bangladesh
Telecom Capex fell to BDT 0.9 billion and Capex to revenue stood at 8 percent as 2G coverage and modernization projects were completed in 2014. The further rollout of 3G was delayed by the 48 days of national strikes.
Ukraine
Telecom Capex excluding licenses more than doubled to UAH 742 million, mainly due to investments in the 3G network and the company expects to launch 3G services in the second half of 2015.
Kazakhstan
Capex was KZT 1.2 billion, and Capex to revenue was 14 percent.
Baburajan K
editor@telecomlead.com
