Telecel Global, Sub-Saharan Africa’s subsidiary of global telecom VimpelCom, has reported a 10 per cent year-on-year increase in operating revenue and a 50 per cent increase in earnings, despite fewer customers in the first quarter (Q1) of 2014.
Telecel operates in Zimbabwe, the Central African Republic (CAR) and Burundi.
The company’s customer base grew by eight per cent year-on-year although it saw a three per cent decline in numbers in the first few months of the 2014.
Telecel had 4.1 million subscribers in Q1 of 2013, which increased to 4.6 million at the end of 2013, but dropped to 4.4 million as of the end of March.
The company’s operating revenue grew to US$22 million from US$20 million in the first quarter of 2013.
VimpelCom reported an increase in earnings from US$6 million at the end of Q1 2013 to US$9 million at the end of March.
However, VimpelCom’s Algerian operation Djezzy reported first quarter losses.
The company experienced a two percent decline in operating revenue and a three percent decline in earnings year-on-year, despite eight per cent growth in its customer base.
“Djezzy’s revenue decreased two per cent year-on-year, as a result of the strong competition following the launch of 3G services by other operators, lower outgoing traffic, and lower interconnect revenue due to the new interconnect pricing which included lower local rates,” Vimpelcom said in its Q1 report.
The company said it has plans to launch additional services in the country during the year.
“3G network rollout remains on track with targeted launch of services during 2Q14. The regulator has approved Djezzy’s commercial initiatives including its 3G launch offers,” Vimpelcom said.
HumanIPO reported in March Vimpelcom was under investigation by the United States Securities and Exchange Commission.
“The investigations appear to be concerned with the company’s operations in Uzbekistan,” VimpelCom said in a statement.
The company said the investigating body had requested documents relating to the operations in Uzbekistan.
