Vimpelcom's net profit up 117% in Jan-March to $601 million

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MOSCOW, June 4 (RIA Novosti) - The net profit of Russia's second-largest mobile operator VimpelCom calculated to US GAAP grew 117% year-on-year in the first quarter to $601 million, the company said Wednesday.

Earnings during the reporting period were up 41.7% on the same period of 2007, to $2.108 billion.

The company, which operates under the Beeline brand, provides services in Russia, Ukraine, Uzbekistan, Tajikistan, Kazakhstan, Armenia and Georgia.

VimpelCom's main shareholders are Altimo, the telecoms arm of Russia's Alfa Group, (44% of voting shares) and Norway's Telenor (29.9% of voting shares).

The company also said in its statement it plans to appeal against back-tax claims for 2005-2006, totaling about $54 million (including fines).

VimpelCom has previously appealed, with partial success, decisions made by tax authorities against the company.

Moscow's arbitration court partially upheld in late 2006 a lawsuit filed by VimpelCom against 1.9 billion rubles ($80 million) in extra taxes for 2003-2004.

In February 2005, VimpelCom settled a dispute with the Tax Service before trial, paying 489.9 million rubles ($20.7 million) in arrears for 2001, although the initial claims were 4.4 billion rubles ($186 million).

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