OREANDA-NEWS. August 15, 2012. “VimpelCom Ltd” (“VimpelCom”, “Company” or “Group”) (NYSE: VIP), a leading global provider of telecommunications services, announces operating and financial results for the quarter ended June 30, 2012.

Jo Lunder, Chief Executive Officer, comments:

"VimpelCom has made further progress in the second quarter of 2012, with year-on-year organic revenue growth of 4% and organic EBITDA growth of 8%.

In Russia, the positive performance trends are continuing with revenues increasing 8% and EBITDA up 12%. Mobile data revenues grew by 35% and we are ahead of schedule to deliver RUB 5 billion in annualized cost savings. Italy again outperformed its competitors, increasing revenue and subscriber market share. EBITDA was stable, despite a decline in revenue due to termination rate cuts and an expected decline in fixed line revenue, which were offset by strong growth in mobile data revenue. Africa & Asia delivered excellent organic revenue growth of 8% and EBITDA growth of 13%, mainly due to further expansion of the subscriber base and revenues from value added services in Pakistan, Bangladesh and Algeria. Year-on-year the EBITDA margin increased by 6.0 percentage points, highlighting the progress made on operational excellence initiatives. In Ukraine, total revenue declined by 1%. This was mainly caused by our investment in moving to bundled tariffs with a consequent impact on revenues and margins. We have maintained our number one market position and implemented a number of initiatives to improve performance, which we expect to have a positive impact in 2013. The CIS business unit delivered organic revenue growth of 10% and organic EBITDA growth of 11%, with mobile subscriber numbers up 17%.

Whilst the results have been impacted by adverse currency movements, this organic performance highlights further solid execution of our strategy in our business units."