Increased costs hit MegaFon profits

15 Aug 2007

Russia’s third largest cellular operator, MegaFon, has seen a hefty drop in second quarter net profits due to increased non-operating costs and exchange rate fluctuations. Profits fell 48% year-on-year to RUB2.29 billion (USD89.7 million), though sales revenues were up 16% to RUB19.23 billion. Pre-tax profits increased 24% to RUB9.65 billion. MegaFon had 32.2 million subscribers at the end of June, according to TeleGeography’s GlobalComms database, up from 26 million a year earlier.

Russia, MegaFon