Company profile
Letter to shareholders
The effect of the Russian economic crisis
Expansion across Russia: Vimpelcom receives new GSM licenses
Vimpelcom's strategic alliance with Telenor
Investor relations
Financial highlights
Summary financial data
Management's discussion and analysis of financial condition and results of operations
Report of Independent Auditors
Consolidated Balance Sheets
Consolidated Statements of Operations
Consolidated Statements of Shareholders' Equity
Consolidated Statements of Cash Flows
1. Organization, Basis of Presentation and Significant Accounting Policies
2. Acquisitions
3. Cash and Cash Equivalents
4. Other Current Assets
5. Property and Equipment
6. Bank Loan
7. Equipment Financing
8. Shareholders' Equity
9. Income Taxes
10. Valuation and Qualifying Accounts
11. Related Party Transactions
12. Commitments and Contingencies
13. Impact of Year 2000 (Unaudited)
14. Quarterly Financial Data (Unaudited)
15. Subsequent Events (Unaudited)


Financial highlights

(Dollar amounts in thousands, except per share)
(US GAAP) 1998 1997 1996
Operating Results
Total operating revenues 375,957 305,930 213,230
Net operating revenues (1) 360,998 293,934 204,169
Operating income 101,839 86,822 70,474
% net operating revenues 28.2% 29.5% 34.5%
Net (loss) income (4,715) 61,076 44,896
% net operating revenues (1.3%) 20.8% 22.0%
Net (loss) income per common share (2) US$(0.24) US$3.17 US$2.53
Net (loss) income per ADS equivalent (3) US$(0.18) US$2.38 US$1.90
EBITDA (4) 144,108 112,060 85,923
% net operating revenues 39.9% 38.1% 42.1%
Consolidated Balance Sheet Data
(Dollar amounts in thousands)		      
Cash, cash equivalents and
Short-term investments 		16,646 38,502 48,954
Working capital (deficit) (46,259) 17,628 35,109
Property and equipment, net 416,036 347,653 179,808
Total assets 536,067 483,098 298,889
Total debt including current portion 192,330 158,352 71,713
Total liabilities 333,131 275,447 152,314
Total shareholders' equity 202,936 207,651 146,575
Statistics
End of period subscribers:
Moscow License Area 124,037 110,140 56,584
The Regions (5) 11,525 6,092 2,630
Total Subscribers 135,562 116,232 59,214
Total Employees (6) 1,332 1,280 1,094
Market share - Moscow License Area (7) 44% 52% 56%

  1. Net operating revenues after deduction of revenue based taxes.
  2. Net (loss) income per share of common stock for 1996 has been adjusted to reflect the provisions of U.S. Statement of Financial Accounting Standard No. 128.
  3. Net (loss) income per share of common stock has been adjusted by a factor of 1.33 to determine net income per ADS equivalent as each ADS is equivalent to three quarters of one share of common stock.
  4. Operating income before depreciation, amortization and 1996 non-recurring charges.
  5. The regions include Samara and other areas with operational AMPS networks.
  6. VimpelCom and its principal subsidiaries.
  7. Based on the Company's estimates of active subscribers (namely, subscribers who have made payments in the last two months) on its networks and on the networks of the other wireless telecommunications providers in the Moscow License Area. Published subscriber data of other wireless telecommunications providers in the Moscow License Area and other available estimates of market share for the Moscow License Area include both active subscribers and inactive subscribers (namely, subscribers who have not made payments in the last two months). Such estimates result in a lower market share for the Company.