MegaFon’s US GAAP net profit up 106%, 3G investment planned

3 May 2007

MegaFon announced yesterday that its US GAAP net income grew 106% year-on-year in 2006, to USD812.8 million. Russia’s third-largest mobile phone operator by subscribers said its total sales increased 56% in the reporting period to USD3.73 billion, up from 2.39 million in 2005, whilst EBITDA climbed 66% to USD1.85 billion. Megafon plans to invest approximately RUB1 billion (USD39 million) in rolling out a 3G network this year, according to the company’s general director Sergey Soldatenkov, with a commercial launch expected next year. Last month Megafon was awarded an UMTS licence alongside market leader MTS and second-placed Vimpelcom. MegaFon’s shareholders are Swedish-Finnish owned telco TeliaSonera (35.6%), Telecominvest (31.3%), CT-Mobile (25.1%) and IPOC International Growth Fund Ltd. (8%).

Russia, MegaFon