MegaFon FY11 revenues increase 12.6% to RUB242.6bn

2 Mar 2012

MegaFon, Russia’s second largest cellular operator by subscribers, has reported consolidated revenues of RUB242.6 billion (USD8.3 billion) for the twelve months ended 31 December 2011, a 12.6% increase on the RUB215.5 billion generated in 2010. Operating income before depreciation and amortisation (OIBDA) grew 3.1% to RUB100.8 billion last year, and net income increased 11.4% to RUB43.6 billion. Capital expenditure (CAPEX) for 2011 was RUB68.7 billion. In operational terms, MegaFon’s consolidated subscriber base increased 9.6% year-on-year to 62.8 million; MegaFon’s subsidiaries include Megafon-Tajikistan (formerly TT Mobile), Aquafon in the Republic of Abkhazia and Ostelecom in the Republic of South Ossetia.

Sergey Soldatenkov, CEO of MegaFon commented: ‘We are quite satisfied with the company’s financial performance in Q4 2011 and the full year of 2011, and are gratified that our balance sheet remains the strongest in the industry. We continued to invest actively in network development, in acquiring new assets and in developing our own retail chain. There is no doubt that our investment programme, which is the largest in our industry, our active M&A policy and our strategic marketing initiatives have all impacted our net income due to higher depreciation and amortisation charges and other expenses related to our investments in our business. But we were ready to absorb those charges in the short run in order to build a stronger competitive advantage for the company in technology and improved service for our customers in the long run. And our net income remains among the highest in the industry.’