"This quarter in which our transformational merger with Wind Telecom closed, shows solid performance across all of our Business Units. Our diligent efforts resulted in an improvement in our market position in Russia, relative outperformance of the market in Italy, and continued profitable growth across our operations in emerging markets. Moreover, we are leveraging our scale advantage, which is reflected by our ability to deliver synergies from the merger with Kyivstar ahead of expectations. And, although we are early in the process of integrating Wind Telecom, our confidence in significant synergies from our enlarged company is reaffirmed."
"Looking ahead, we will maintain our focus on integrating our businesses and driving sustainable, profitable growth and increased cash flows by capturing opportunities in our emerging markets and by increasing focus on both fixed and mobile broadband in our more mature markets."
"I am confident that we have a strong platform for improvement and for sustainable profitable growth."
The total mobile subscriber base increased by 11% YoY to 193 million, with the largest absolute contribution coming from the accelerated growth in subscribers in Russia. The Company also achieved strong growth of broadband and mobile data in Russia, Italy and Ukraine.
In Russia, the Company had the highest net additions of mobile subscribers in the market during the first 6 months of 2011. The subscriber growth rate increased twofold over the first quarter of 2011 with more than 2 million additional subscribers. Mobile broadband subscribers increased by 82% YoY to 2.3 million and fixed broadband subscribers grew 39% YoY to 1.7 million.
In the Business Unit Europe and North America, the Company's Italian business continued to outperform the broader telecom market in the second quarter despite the ongoing weak macroeconomic environment and unfavorable regulatory developments. VimpelCom strengthened its market position in both mobile and fixed-line, increasing the market share in both segments. The fixed broadband subscriber base increased 18% YoY to 2.1 million, while Mobile Internet revenues increased 33% YoY.
In the Business Unit Africa and Asia, the Company achieved strong growth in its subscriber base across all countries of operation, reaching over 74 million in total. Improved performance was driven primarily by increased usage of voice traffic and focus on cost optimization.
The Business Unit Ukraine delivered stable growth in mobile subscribers, strong improvements in fixed residential broadband, and increased mobile data usage. Mobile data revenue grew 48% YoY to UAH 190 million driven by increased usage of data services in USB modem offers and within the new bundled tariff plans.
The CIS Business Unit continued to demonstrate strong operational results despite intensified competition in some key CIS countries, due to the improving macroeconomic situation in the region, product quality and efficient sales and marketing efforts. In the Company's largest CIS market, Kazakhstan, VimpelCom achieved subscriber growth of 24% YoY.
In Italy we strengthened our market position in both mobile and fixed-line, increasing market share in both segments. In the mobile segment, performance was driven by the ongoing success of the Company's targeted offerings for voice and messaging, both on-net and off-net, by the strong take-up of its post-paid offerings targeted at the high value consumer and SME/SOHO segments, and by the notable success of its Mobile Internet offerings for smartphones and tablet devices. In the fixed-line segment, performance was particularly strong in the consumer segment, which posted a 6.3% increase in revenues driven by the Company's simple and transparent set of offerings, which are easily adaptable to all customer needs and are supported by a highly effective promotional and advertising strategy.
WIND's total revenues reached EUR 1.4 billion in the second quarter, driven by a 1% increase in telecom service revenues.
EBITDA declined YoY as a result of certain non organic items recorded in 2Q10 (mainly settlements with other operators, active penalties and release of previous years over accrued provisions), combined with an increase in monthly access fees on Local Loop Unbundling (LLU) paid to the incumbent operator and by an increase in bad debt in the fixed-line business. On an organic basis WIND's EBITDA in the second quarter was in line with the same quarter a year ago. The EBITDA margin remained a solid 37.6%.
"Looking ahead, we will maintain our focus on integrating our businesses and driving sustainable, profitable growth and increased cash flows by capturing opportunities in our emerging markets and by increasing focus on both fixed and mobile broadband in our more mature markets."
"I am confident that we have a strong platform for improvement and for sustainable profitable growth."
The total mobile subscriber base increased by 11% YoY to 193 million, with the largest absolute contribution coming from the accelerated growth in subscribers in Russia. The Company also achieved strong growth of broadband and mobile data in Russia, Italy and Ukraine.
In Russia, the Company had the highest net additions of mobile subscribers in the market during the first 6 months of 2011. The subscriber growth rate increased twofold over the first quarter of 2011 with more than 2 million additional subscribers. Mobile broadband subscribers increased by 82% YoY to 2.3 million and fixed broadband subscribers grew 39% YoY to 1.7 million.
In the Business Unit Europe and North America, the Company's Italian business continued to outperform the broader telecom market in the second quarter despite the ongoing weak macroeconomic environment and unfavorable regulatory developments. VimpelCom strengthened its market position in both mobile and fixed-line, increasing the market share in both segments. The fixed broadband subscriber base increased 18% YoY to 2.1 million, while Mobile Internet revenues increased 33% YoY.
In the Business Unit Africa and Asia, the Company achieved strong growth in its subscriber base across all countries of operation, reaching over 74 million in total. Improved performance was driven primarily by increased usage of voice traffic and focus on cost optimization.
The Business Unit Ukraine delivered stable growth in mobile subscribers, strong improvements in fixed residential broadband, and increased mobile data usage. Mobile data revenue grew 48% YoY to UAH 190 million driven by increased usage of data services in USB modem offers and within the new bundled tariff plans.
The CIS Business Unit continued to demonstrate strong operational results despite intensified competition in some key CIS countries, due to the improving macroeconomic situation in the region, product quality and efficient sales and marketing efforts. In the Company's largest CIS market, Kazakhstan, VimpelCom achieved subscriber growth of 24% YoY.
In Italy we strengthened our market position in both mobile and fixed-line, increasing market share in both segments. In the mobile segment, performance was driven by the ongoing success of the Company's targeted offerings for voice and messaging, both on-net and off-net, by the strong take-up of its post-paid offerings targeted at the high value consumer and SME/SOHO segments, and by the notable success of its Mobile Internet offerings for smartphones and tablet devices. In the fixed-line segment, performance was particularly strong in the consumer segment, which posted a 6.3% increase in revenues driven by the Company's simple and transparent set of offerings, which are easily adaptable to all customer needs and are supported by a highly effective promotional and advertising strategy.
WIND's total revenues reached EUR 1.4 billion in the second quarter, driven by a 1% increase in telecom service revenues.
EBITDA declined YoY as a result of certain non organic items recorded in 2Q10 (mainly settlements with other operators, active penalties and release of previous years over accrued provisions), combined with an increase in monthly access fees on Local Loop Unbundling (LLU) paid to the incumbent operator and by an increase in bad debt in the fixed-line business. On an organic basis WIND's EBITDA in the second quarter was in line with the same quarter a year ago. The EBITDA margin remained a solid 37.6%.