Russia's OAO Vimpel Communications (VimpelCom) reported an 86% increase in net income and a 39% increase in revenue for the fourth quarter of 2007, but its soaring numbers still missed some analyst estimates. Those misses added to a lack of confidence some U.S. investors have in the Russian economy and political environment, and the company's U.S. stock value consequently sank.
The mobile carrier giant continues to benefit from the ongoing surge in new customers signing up for its services, and average monthly spending rose from about $8.90 at the end of 2006 to $11.10 at the end of 2007, but the carrier also has experienced high churn. The company recently moved to close its acquisition of landline telco Golden Telecom, which has been aggressively rolling out its own broadband and TV services, and if the companies can leverage one another's customer bases, more good times may lie ahead.
For more:
- see this earnings brief at The Wall Street Journal
Related articles:
- Vimpelcom announced the Golden Telecom deal last December