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Our interest bearing liabilities carry both fixed and floating interest
rates. On our borrowings with a floating interest rate, the interest rate
is linked either to LIBOR or to EURIBOR. Our interest expense depends
on a combination of prevailing interest rates and the amount of our
outstanding interest bearing liabilities.
Income tax expense. Income tax expense included both current and
deferred tax expense. The statutory income tax rate in Russia is 24.0%.
The statutory income tax rate in Kazakhstan is 30.0%. The statutory
income tax rate in Ukraine and Tajikistan is 25.0%. The statutory
income tax rate in Armenia and Georgia is 20.0%. In Uzbekistan there is
a complex income tax regime that results in an effective income tax rate
of approximately 17%.
Results of Operations
The following is a discussion of VimpelCom’s results of operations for
the periods indicated. Golden Telecom’s results of operations were not
consolidated with VimpelCom’s results of operations as of December 31,
2007 and, consequently, are not discussed below.
The tables below show for the periods indicated, selected information about
the results of operations in each of our geographic segments. For more
ВымпелКом / Годовой отчет 2007
The table below shows, for the periods indicated, the following statement
of operations data expressed as a percentage of net operating revenues.
Year ended December 31,
Consolidated statements of income 2007 2006 2005
Operating revenues:
Service revenues 99.9% 99.6% 98.9%
Sales of handsets and accessories 0.1% 0.3% 0.9%
Other revenues 0.1% 0.1% 0.2%
Total operating revenues 100.1% 100.0% 100.0%
Less revenue based taxes (0.1)% – –
Net operating revenues 100.0% 100.0% 100.0%
Operating expenses:
Service costs 18.3% 17.9% 16.0%
Cost of handsets and accessories 0.1% 0.4% 0.9%
Selling, general
and administrative expenses 30.8% 30.9% 33.8%
Depreciation 16.3% 18.0% 14.0%
Amortization 3.1% 3.7% 4.4%
Provision 0.6% 0.4% 0.4%
Total operating expenses
for doubtful accounts 69.2% 71.3% 69.5%
Operating income 30.8% 28.7% 30.5%
information regarding our segments, see Note 16 to our audited consolidated
financial statements included elsewhere in this annual report.
Years ended December 31,
Russia 2007 2006 % change 2006 2005 % change
(In millions of U.S. dollars, except % change)
Total net operating revenues
from external customers 6,090.3 4,400.3 38.4 4,400.3 3,032.9 45.1
Depreciation and amortization 1,109.0 900.3 23.2 900.3 535.4 68.2
Operating income 1,991.8 1,403.2 41.9 1,403.2 972.7 44.3
Income before income taxes
and minority interest 1,937.1 1,231.3 57.3 1,231.3 847.1 45.4
Income tax expense 514.8 373.7 37.8 373.7 226.8 64.8
Net income 1,422.3 857.6 65.8 857.6 620.3 38.3
Years ended December 31,
Kazakhstan 2007 2006 % change 2006 2005 % change
(In millions of U.S. dollars, except % change)
Total net operating revenues
from external customers 607.6 350.0 73.6 350.0 176.1 98.8
Depreciation and amortization 105.8 93.0 13.8 93.0 55.1 68.8
Operating income 216.8 47.6 355.5 47.6 9.6 395.8
Income before income taxes
and minority interest 215.4 41.1 424.1 41.1 (2.1) –
Income tax expense 73.8 21.3 246.5 21.3 (4.4) –
Net income 141.6 19.8 615.1 19.8 2.3 760.9
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