MegaFon sees FY10 revenues increase 18.5% to RUB215.5 billion

11 Mar 2011

MegaFon, Russia’s second largest cellular operator by subscribers, has reported consolidated revenues of RUB215.5 billion (USD7.6 billion) for the twelve months ending 31 December 2010; this figure represents an increase of 18.5% from the RUB181.8 billion generated in full year 2009. Operating income before depreciation and amortisation (OIBDA) grew 10.9% to RUB97.8 billion in FY10, whilst net income edged up 8.6% to RUB49.2 billion. Capital expenditure (CAPEX) for 2010 was RUB67.2 billion. MegaFon notes that its FY10 results incorporate consolidated financial data relating to the acquisitions of the fixed line operator Synterra (starting from June 2010) and St Petersburg based alternative telco Metrocom (commencing November 2010). In operational terms MegaFon’s domestic subscriber base increased 12.7% to 56.6 million during 2010; this increase allowed it to overtake Vimpelcom for the first time. Although a precise operational breakdown has not been provided, MegaFon reports that its consolidated subscriber base reached 57.3 million at end-2010. MegaFon’s subsidiaries include TT Mobile in Tajikstan, Aquafon in the Republic of Abkhazia and Ostelecom in the Republic of South Ossetia.

Sergey Soldatenkov, CEO of MegaFon commented: ‘We are happy with the company’s financial results for the fourth quarter and the whole year of 2010. The company continues to produce excellent results; consolidated revenue for the fourth quarter grew by 22% compared to the same period last year, and for the whole year reached a record high of RUB216 billion. At the end of last year MegaFon, for the first time ever, became number two in the Russian wireless revenue sector, and also took second place in the number of subscribers – today our network has over 57 million subscribers. The acquisition of the Synterra Group, a leading fixed line operator, was the key transaction of the year and the largest deal in our history, helping us to move to the development of new businesses based on a full range of telecoms services provided through the use of cutting-edge technologies. The integration of MegaFon and Synterra is going according to the plan. In 2010, we launched commercial operation of 3G networks in every region of Russia and provide 65% of the country’s population with access to our high-speed mobile network. In 2011, we will continue to expand our 3G network to provide superior mobile broadband throughout Russia’.

Russia, MegaFon