MegaFon profits fall on currency losses

10 Aug 2012

Russian cellco MegaFon has posted net income of RUB1.7 billion (USD57 million) for the second quarter of 2012, down 85% year-on-year following foreign exchange losses. Revenues rose 14% year-on-year to RUB66.8 billion while earnings before interest, tax, depreciation and amortisation (EBITDA) came in 12% stronger at RUB28.3 billion. The results were boosted by data traffic doubling compared with the corresponding period last year, and the company’s subscriber base increasing by 7.7% to stand at more than 62 million on 30 June 2012.

‘With a double digit top line growth of 14% on a year-on-year basis and robust EBITDA growth we have delivered solid operating results. Nonetheless our net income was impacted negatively by a foreign exchange loss arising from the revaluation of our increased US dollar-denominated obligations due to the significant depreciation of the ruble against the US dollar in the second quarter of 2012,’ said MegaFon CEO Ivan Tavrin.

As previously reported, the company plans to list up to 20% on the London stock exchange during the second half of 2012.

Russia, MegaFon