MOSCOW, November 15 (RIA Novosti, Peter Lavelle) - VimpelCom will report 3Q05 US GAAP results on Thursday. The market consensus expects to see the seasonal strength that has historically made the third quarter the strongest for Russian cellulars.
ARPU (average revenue per unit) should benefit from increased usage as subscribers move out of the cities over the summer months and roaming revenues should also be strong due to the vacation season. Additionally, increased seasonal demand for cellular services allows operators to lower their operating costs in the third quarter, helping to lift margins above the average for the year.
Investors will be interested in VimpelCom's ARPU, margin and capital expenditure dynamics; ability to generate cash is also of increasing significance as the market approaches saturation.
Lastly, the market will be looking for management comments on the purchase of Ukrainian RadioSystems and planned expansion into Ukraine.
