MegaFon, Russia’s second largest cellular operator by subscribers, has reported consolidated revenues of RUB72.23 billion (USD2.20 billion) for the three months ended 30 June 2013, an 8.4% increase year-on-year. Operating income before depreciation and amortisation (OIBDA) grew 21.8% y-o-y to RUB34.30 billion for the April-June period, and net profit increased 717.4% to RUB13.58 billion. The company’s management has credited the significant improvement to ‘greatly reduced foreign exchange losses’. Capital expenditure for 2Q13 dropped 31.7% y-o-y from RUB12.22 billion to RUB8.34 billion.
In operational terms, MegaFon’s consolidated subscriber base increased to 66.00 million by end-June, of which 64.07 million are based in Russia; MegaFon’s subsidiaries include Megafon-Tajikistan (formerly TT Mobile), Aquafon in the Republic of Abkhazia and Ostelecom in the Republic of South Ossetia.
CEO Ivan Tavrin commented: ‘All business segments have demonstrated growth, with data revenue again being the main driver of the total revenue uplift, increasing by 28.7% y-o-y. This strong data revenue growth was fuelled by further expansion of our 4G LTE network – by the end of Q2 2013 MegaFon provided access to the LTE network in 30 regions in Russia, covering 27% of the population – as well as increases in smartphone sales, including our own branded equipment’.