Second placed Russian mobile operator VimpelCom today reported that net profit for 2005 increased 75.6 per cent to $615m (ВЈ347m), compared to $350m in 2004. The growth was driven by a realignment of strategy to focus more on revenue growth and enhancing the value of the existing subscriber base.
As a result, operating revenues also increased 52 per cent year on year from $2.113bn in 2004 to $3.211bn in 2005.
During the year, the operator topped the 45 million subscriber mark after adding a record 19 million customers. In Russia, VimpelCom’s subscriber base grew 67.5 per cent to reach 43 million at the end of December, although overall churn increased from 5.7 per cent in 2004 to 8.3 per cent in 2005.
Average revenue per user (ARPU) also fell 25.7 per cent year on year to $7.5, compared to $10.1 in 2004. However, the bulk of this decline appeared in the first quarter, the company said.
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