MegaFon: Q2 net income down 10.8%

8 Sep 2009

Russian mobile operator MegaFon has posted net income of RUB8.99 billion (USD285.6 million) for the three months ended 30 June 2009, a 10.8% year-on-year drop which the company attributes to the appreciation of the rouble on the company’s investments denominated in foreign currencies. Revenues for the quarter were RUB43.9 billion, up from RUB42.4 billion a year earlier, a rise of 3.4%, while earnings before interest, tax, depreciation and amortisation (EBITDA) rose marginally, up RUB121 million, or 0.6% year-on-year, to RUB20.66 billion. Sergey Soldatenkov, CEO of MegaFon, said: ‘We had a very good overall performance in the six months ended 30 June 2009, showing growth in financial indicators versus the corresponding period in the previous ‘pre-crisis’ year. The first quarter of 2009 was not easy, our subscribers reduced their monthly usage and spending, and new subscriber additions slowed, but we were able to offset this by pursuing a conservative approach to costs and by efficient business management. As a result, by the end of the current period we managed to reverse the negative trends which were evident at the beginning of this year and were able, through effective marketing initiatives in the second quarter of 2009, to realize improved minutes of use (MOU) and average revenue per user (ARPU).’

MegaFon added 1.84 million net new customers in the three months ended 30 June 2009, ending the period with a mobile customer base of 45.36 million, a 17.2% year-on-year growth. MOU rose from 264 at the end of March to 280 three months later, although this still represented a 5.4% decline from June 2008. ARPU was RUB322 in the three month period, a 13.2% drop from Q208, but up from RUB316 at the end of March 2009.

Russia, MegaFon