MegaFon posts 20% rise in Q1 net profit

19 Jun 2009

Russian mobile operator MegaFon has posted net profits of RUB11.1 billion (USD356.9 million) for the first quarter of 2009, a 20.2% year-on-year rise. Revenues for the three months ending 31 March 2009 were RUB42.2 billion, up from RUB37.8 billion in the same period a year earlier. EBITDA for the quarter climbed 10.3% to RUB20.9 billion, up from RUB18.9 billion at the end of March 2008. Sergey Soldatenkov, chief executive officer of MegaFon, said, ‘1Q 2009 has probably seen the most uncertain period in this turbulent global macroeconomic environment. Our subscribers decreased their monthly usage and spending, and new subscriber additions slowed. Consistent with our philosophy to provide continuing value for money to our subscribers, we launched a number of marketing initiatives to help our subscribers cope with the uncertain environment. As a result, we are seeing some positive signs of stabilisation in these operational trends.’

MegaFon’s reported 43.5 million subscribers to its mobile operations at the end of 1Q 2009, up from 36.8 million a year earlier. Average revenue per user (ARPU) fell by 8.9% year-on-year, down to RUB315.7 (USD10.15) per month in 1Q 2009.

Russia, MegaFon