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VimpelCom
(NYSE: VIP)
Russia
Russia's second-largest mobile telecom operator is one of the first major corporate success stories to emerge from post-Soviet Russia. Founded in 1992, VimpelCom became the first Russian company to list on the New York Stock Exchange, in 1996. The company has experienced explosive growth over the past five years as the mobile telephone fad swept Russia. The number of VimpelCom subscribers hit 50 million in June 2006, a 52% increase over a year earlier. As the Russian market approaches saturation, VimpelCom is trying to get existing customers to use more services, which management expects will lift average revenue per user in 2006. The company also has expanded out of Russia into neighboring countries with greater room for subscriber growth: Kazakhstan, Uzbekistan, Tajikistan and Ukraine.
Company Info |
|
| 2005 Rank | 55 |
| Sales* ($ Millions) | 3,211.1 |
| Sales Growth (over prev. year) |
52 % |
| Profits* ($ Millions) | 615.1 |
| Return on Equity | 22.4 % |
| Total Return on Sales (12-mo.) | 12.1 |
| Share Price As of 5/31/06 | 157.00 |
| CURRENT MARKET INFO | NYSE: VIP |
| No. of Employees | 13,300 |
| Industry | Telecommunications |
| COMPANY WEB SITE > | |
*Trailing 12 months
Stock price data as of 5/31/06
DATA: Standard & Poor's Compustat
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Company Snapshot
Vimpel-Communications provides wireless communication services in Russia and Kazakhstan. Its wireless services include voice telephony services; value-added services using short messaging services, unstructured supplementary services data, wireless application protocol, global packet radio services, and multimedia messaging technologies; interconnections with other networks; and access to both national and international roaming service. The company offers these services to its subscribers under two types of payment plans, which include contract plans and prepaid plans. Vimpel-Communications also sells wireless handsets and accessories to its subscribers. As of Dec. 31, 2004, the company had approximately 26.6 million subscribers on wireless networks. Vimpel-Communications has strategic relationships with Telenor East Invest and Alfa Group. The company was founded in 1992 and is headquartered in Moscow. Vimpel-Communications acquired Sakhalin Telecom Mobile and Sakhalin Telecom in July, 2005.
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