MegaFon reports Q3 revenues of RUB77.5bn

13 Nov 2013

MegaFon, Russia’s second largest cellular operator by subscribers, has reported consolidated revenues of RUB77.543 billion (USD2.358 billion) for the three months ended 30 September 2013, a 9.0% increase year-on-year. Operating income before depreciation and amortisation (OIBDA) grew 10.5% to RUB35.387 billion for the July-September period, and net profit increased 2.9% to RUB15.321 billion. Capital expenditure for 3Q13 increased 51.5% y-o-y to RUB10.862 billion.

In operational terms, MegaFon’s consolidated subscriber base increased 5.4% y-o-y to 68.3 million, of which 66.3 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. MegaFon’s domestic unit claimed 23.152 million data subscribers (3G/LTE) at 30 September, and noted that it now has LTE coverage of 31 Russian regions, equivalent to 30% of the population.

Ivan Tavrin, CEO of MegaFon, commented: ‘Traditionally the third quarter is a good period for us, and we are pleased to see the growth achieved in all our business segments. The steady increase in our customer base, strong growth in data and value added services [VAS], remain key drivers of our revenue increase. Our data revenue, which grew 24.2% y-o-y, was a particular stand out in the third quarter. The data revenue increase was driven by increased smartphone sales, as well as further expansion of our LTE network, thereby justifying our commitment to these particular initiatives’.