Credit Suisse: VimpelCom's 4Q11 Results Review

In a research report published today by Credit Suisse, VimpelCom Ltd.'s

4Q11 revenues are in-line with consensus and up 4% yoy. According to Credit Suisse, “Operating performance has not yet shown any improvement in our view and the company generated zero FCF before acquisitions in 2011. In Russia, 9% revenue growth was offset by 7% EBITDA decline in local currency. While VIP gained revenue share from MTS and Megafon in 4Q they lost EBITDA market share quite materially. (MTS delivered +17% EBITDA growth in 4Q11 in local currency, Megafon had a small decline). In the Ukraine VIP also underperofrmed MTS on both revenues and EBITDA. Orascom reported earlier today and results were below expectations, with Bangladesh particularly weak while Pakistan and Algeria performance broadly in line. Italy was flat yoy.” Credit Suisse maintains its Outperform rating and $17 PT on Vimpelcom, which is currently trading at $11.62.