MegaFon posts RUB45.3 billion net profit for 2009

11 Mar 2010

Russia’s third largest cellular operator by subscribers, MegaFon has reported a 2.2% increase in net profit year-on-year, up from RUB44.3 billion (USD1.49 billion) in 2008 to RUB45.3 billion a year later. The company reported the results under US GAAP accounting standards. Operating income before depreciation and amortisation (OIBDA) fell marginally to RUB88.1 billion in the period while revenues grew by 3.7% to RUB181.9 billion. Sergey Soldatenkov, CEO of MegaFon, attributed its better FY 2009 performance to efficient tax policy, sound investment and good management, adding: ‘Our main goal in 2009 was to build strong technical potential for the development of new age technology. Already at the start of the year we have seen growing data consumption, which has kept us from cutting our investment, to maximise development of the business, while most of other companies did so. Our financial position let us realise our ambitious plans, we became Russia’s leader for the number of 3G fixed basic stations in operation and data transmission turnaround grew threefold during the year. At the same time our efficient marketing policy has let us leave other companies behind in terms of net connections while keeping profitability at a high level. We plan to continue developing 3G technologies in 2010, and by the end of May we will have finished our licence terms for 3G and will continue construction in all regions of Russia. Along with that, we will keep on building an efficient retail chain, aimed at a high level of service for our clients, and increasing our share in Russia’s mobile market.’

Russia, MegaFon