MegaFon, Russia’s second largest cellular operator by subscribers, has reported consolidated revenues of RUB63.10 billion (USD2.08 billion) for the three months ended 31 March 2012, a 14.4% increase on the RUB55.16 billion generated in 1Q12. Operating income before depreciation and amortisation (OIBDA) grew 7.3% to RUB25.54 billion for the January-March period, and net income increased 8.1% to RUB9.27 billion. Capital expenditure for 1Q12 dropped 29.8% from RUB12.92 billion to RUB9.08 billion. In operational terms, MegaFon’s consolidated subscriber base increased 0.5% year-on-year to 63.1 million; MegaFon’s subsidiaries include Megafon-Tajikistan (formerly TT Mobile), Aquafon in the Republic of Abkhazia and Ostelecom in the Republic of South Ossetia.
Ivan Tavrin, CEO of MegaFon, commented: ‘Our financial results continue to improve year-on-year, although y-o-y net income was negatively impacted by increased depreciation and amortisation charges resulting from our significant investment in infrastructure in 2011. The declines in quarter-on-quarter numbers are seasonal, as traditionally the last quarter of the year is an extremely active time for us.’