MegaFon enjoys strong first quarter

15 May 2013

Russian cellco MegaFon has posted revenue of RUB67.7 billion (USD2.2 billion) for the first quarter of 2013, up 7.6% year-on-year, thanks in part to a 22.5% increase in wireless data revenues and a 29.2% hike in sales of equipment and accessories. The higher turnover coupled with tight cost control saw EBITDA reach RUB32.4 billion for the three month period, up an impressive 26.8% year-on-year, while net profit soared by more than 36% to RUB12.6 billion.

Operationally, the company revealed that its LTE network connected 81 cities across 29 regions as of 31 March, with approximately 149,000 4G subscribers. In terms of its total subscriber base subscribers, MegaFon had 62.7 million mobile subscribers at 31 March, an increase of 1.7% year-on-year. Monthly ARPU during the first quarter averaged RUB314, up 5.4% from RUB298 during the corresponding period of 2012, while monthly minutes of use also increased, up 3.5% year-on-year to 294.

In its guidance for the full year of 2013, MegaFon says it expects high single digit revenue growth, and an EBITDA margin of between 42.5% and 44%, an upward revision from prior guidance. The company also revealed it expects to spend between RUB55 billion and RUB60 billion on CAPEX during 2013.

Russia, MegaFon