Vimpelcom Ltd (NASDAQ ADR:VIP) is an integrated telecom service provider operating predominantly in Russia (41% of revenues) and is the third largest mobile operator in the country. It also provides telecom services in the CIS countries like Ukraine, Uzbekistan, Kazakhstan, Tajikistan, Armenia and Georgia. It also operates in Italy and African countries like Zimbabwe, Central African Republic, Burundi, Algeria and Laos.
Italy is also a major market as it contributes 30% of revenues to the company.
VimpelCom valued at $10 billion is famous for its high dividend payouts. In FY13 the total dividend per share was $1.24 even though the EPS was negative at ($0.83). The dividend payout increased more than 50% year-on-year in FY13 to result in a dividend yield of 15%.
The recent performance of the company in H1FY14 has been rocky and it has been reflected in the stock price as well, which has almost halved from its early 2014 high of $13 to the current $6 per share. The operating revenue and operating profit have declined organically by 6% and 7% respectively in H1FY14 over H1FY13 due to macroeconomic conditions- especially the ongoing Ukraine crisis, which has affected Russia, the company's largest market.