Net operation profit came 70.9% up to $417.697 million. The OIBDA, operation income before deducing fixed assets wear and non-material assets amortisation, came 87.2% up to $202.025 million. Net profit per share increased by 74.3% to $1.9, and per ADR by 74.4% to $1.43.
The Vympelcom was doing so fine mainly thanks to a skyrocketing user inflow, saving on the huge operation scope, thrifty spending, and shrinking cost of client attraction outside Moscow, explains the release.
Seasonal effects brought operation profit growth rates down, as against last October into December. OIBDA and net profit indices improved, on the contrary.
Company finance reports concern performance in and outside Moscow. Net operation profit with no account for domestic corporate transactions was $256.3 million for Moscow and 161.4 million for the provinces, and net profit 60 million and 26.8 million, respectively.
Overall capital investment, roughly $157 million, was spent on property and equipment.
January last introduced new methods of accounting asset depreciation as the company cut its GSM telecommunication service expectations to seven years from nine and a half.
Starting with the first quarter-year, the Vympelcom introduced new techniques of MOU counting. Average monthly traffic per user previously made an account of paid minutes only. Now, the company takes stock of the entire conversation, paid and free minutes alike.
Last January-March had a 91.4 minute MOU-4.5% more than for last year's first quarter. It was, however, 5.6% below the last quarter-year 2003, mainly due to seasonal effects.
The ARPU, average revenue per user, $10.8, was 20% down against $13.5 in the first quarter-year 2003, and 13.6% down against $12.5 of the last quarter-year-all that due to season and a growing share of provincial users, with an ARPU below Moscow subscribers'. Close competition brought tariffs and minute costs low down, too.
The Vympelcom has approximately 14.94 million substribers, as of May 27, 2004. Of these, 6.22 million live in Moscow and its environs, and 8.72 million elsewhere in Russia. The company lost 8.6% of clients in the first quarter-year, as against 9.6% in the initial three months 2003.
The Vympelcom was holding 48.4% of the Moscow licensed market at the quarter-year's end-as against 49.5% the same days last year, with a respective 32% and 29% in the national context.
