MegaFon reports 29% hike on profits for Q1

7 Jun 2004

Russia’s third largest mobile operator MegaFon has reported a net profit of RUB1.14 billion for the three months to 31 March 2004, up 29% on the corresponding period of 2003, on revenues of RUB3.51 billion (+28%). The cellco’s pre-tax profit rose by 29.4% over the same period to RUB1.42 billion. At the end of April 2004 MegaFon reported 8.13 million subscribers, up from 6.175 million at the start of the year. The company’s shareholders include TeliaSonera (35.6%), Telecominvest (31.3%), Alfa Group’s controlled TsT-Mobile (25.1%), IPOC International Growth Fund (6.5%) and Harborne Group (1.5%).

In a related story, Nokia of Finland has announced the signing of a USD350 million deal to supply network equipment to MegaFon. The deal is Nokia’s biggest in Russia and will boost its share of the lucrative USD1 billion GSM market. Under the contract, Nokia will supply GSM/GPRS equipment for the expansion of MegaFon’s GSM network, enabling advanced mobile data services.

Russia, MegaFon