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* Total revenue down 1 percent in Q3 at $5.7 billion
* Growth lags targets
* Net profit halves on deferred tax provision
MOSCOW, Nov 6 (Reuters) - Vimpelcom, Russia's thirdbiggest mobile operator, said on Wednesday competition andtougher regulations hit sales growth in the third quarter.
The company's biggest market is Russia, but it has movedinto emerging markets, including countries in Africa and Asiaand also in continental Europe, where it owns Wind in Italy. Theexpansion has left the group with more than $20 billion in debt.
Regulatory pressures in Africa and Asia as well as reducedfees that its Italian business Wind can charge rivals to use itsnetwork contributed to a 1 percent fall in third-quarter revenueto $5.7 billion.
"We see increased government pressure and see effects ofregulations, some of the markets are slowing down, and right nowthe year-to-date growth is below the three-year objective thatwe have set ourselves," Chief Executive Jo Lunder told Reuters.
He said the company, which previously said it was targetingmid-single digit revenue growth for the next three years, wouldgive updated guidance at the end of January 2014.
The new regulatory pressures included increased electricitytariffs and petroleum prices in Pakistan and tightening ofregulations of voice calls via internet in Bangladesh. Thesecame on top of intensified price competition in Italy where itsrivals are Telecom Italia, Vodafone Italia andHutchison Whampoa's 3 Italia business.
Lunder said Vimpelcom, which lags rivals MTS andMegafon in Russia, would continue to look atconsolidation opportunities in several of its markets butstressed that a further expansion within Europe was not high onits list of priorities.
"Vimpelcom's priority right now is first of all to focus onthe markets we are in. We will focus on good, solid performancein our markets, also on deleveraging the balance sheet and alsoto keep our pledge on dividend payments," he said.
The company, whose biggest shareholder is Russianbillionaire Mikhail Fridman's Altimo group, had net debt of$22.5 billion as of Sept. 30.
Vimpelcom reported a $255 million net profit attributable toshareholders for the three months ended Sept. 30, down 53percent from $538 million a year ago.
Earnings were hit by a deferred tax provision related tofuture dividend payments from Vimpelcom's Russian business toits parent. Earnings before interest, taxes, depreciation andamortisation (EBITDA) fell 2 percent to $2.5 billion, with anEBITDA margin falling to 43.5 percent from 44 percent.
The company also declared an interim dividend of $0.45 pershare and will return to shareholders, which also includesNorway's Telenor - a total of $791 million.
