VimpelCom Posts Wider Q4 Loss From Cont. Ops.; Service Revenue Up 3%

(RTTNews) - VimpelCom Ltd. (VIP) reported that its fourth-quarter loss from continued operations widened to $273 million from a loss of $154 million, previous year. Operating profit decreased to $91 million from $166 million. Underlying EBITDA organically increased 1.2%. Profit to owners of the parent was $1.64 billion compared to $57 million, a year ago. The company noted that its fourth-quarter profit to shareholders was positively impacted by the completion of the Italy joint venture transaction, partially offset by impairments, transformation costs and litigation provision.

Fourth-quarter total operating revenues were $2.35 billion compared to $2.30 billion, prior year. Group service revenue increased 3% primarily due to the Warid consolidation from third-quarter 2016. Total mobile customers increased by approximately 10.6 million to 206.9 million at the end of fourth quarter 2016, mainly driven by the consolidation of Warid's customers in Pakistan from July 2016.

The VimpelCom Supervisory Board has approved a new dividend policy and for the financial year ending 31 December 2016, VimpelCom intends to pay a dividend in the aggregate amount of 23 cents per share comprised of 3.5 cents per share paid as an interim dividend in December 2016 and 19.5 cents per share as a final dividend. The record date for the company's shareholders entitled to receive the final dividend payment has been set for 30 March 2017. It is expected that the final dividend will be paid in April 2017.

VimpelCom said the company is rebranding to VEON after a significant turnaround and announced that it will change its name to VEON, subject to shareholder approval at an Extraordinary General Meeting to be held on 30 March 2017. The Supervisory Board approved calling a special general meeting of shareholders on 30 March 2017.

VEON is planning a second listing in second quarter 2017 on Euronext Amsterdam. The company will list under its new name VEON with a new ticker code VEON. The expected listing will be of the company's common shares, which may be exchanged for the company's shares listed on the NASDAQ Global Select Market. The ticker for the company's listing on NASDAQ will also change to VEON.

For 2017, the company targets: low single digit year-on-year organic growth for total revenue; low single digit year-on-year organic accretion for underlying EBITDA margin. The company expects underlying equity free cash flow of $700-800 million in 2017 and more than $1 billion for 2018.