MegaFon sees huge increase in net profit after ‘reduced foreign exchange losses’

12 Aug 2013

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’.

Russia, MegaFon