MOSCOW, July 7 (RAIA Novosti) - VimpelCom (RTS: VIMP) said Friday its net profit calculated according to Russian accounting standards increased by 130% to 16.73 billion rubles ($621.66 million) in 2005 year-on-year.
Russia's second largest mobile phone operator said its 2005 revenues had risen three times to 72.89 bln rubles ($2.71 billion), and the gross profit increased by 190% to 51.72 bln rubles ($1.92 billion) year-on-year.
The VimpelCom group includes cell phone operators in Russia, Kazakhstan and, following recent acquisitions, in Ukraine, Tajikistan and Uzbekistan. The group is licensed to provide mobile phone operations to a region home to 232 million people, and covers 94% of Russia's population in 78 out of 88 regions.
VimpelCom is listed in the Russian Industrial Leaders Index (RUXX) - a composite economic index of 20 Russian companies with financial instruments (shares and depository receipts) placed on bourses, including the New York Stock Exchange, the London Stock Exchange, the Nasdaq and AMEX.
The company, which operates under the Beeline trademark in Russia, said in June it would be among four bidders for a 90% stake in Armenian telecom company ArmenTel, which with about 330,000 users as of late March 2006 counts just over a tenth of the country's population as its clients. The winner of the tender is expected to be announced after July 20.
The announcement came in the wake of a recent demand for 1.91 billion rubles ($70.5 million) in back taxes for 2003-2004 by Russia's tax authorities. The demand included 1.5 bln rubles ($55.5 mln) in tax arrears, as well as 405 mln rubles ($15 mln) in fines and penalties.
VimpelCom said it would contest the results of tax authorities' checks for 2003-2004. The company said its tax records showed it had over-paid for 2003 and 2004 by 796 mln rubles ($29.44 mln), and that it had sent its demands to the tax authorities.
The authorities accepted the company's claim, the statement said, and informed VimpelCom that it would refund 795 mln rubles ($29.4 mln).
