MegaFon 2014 revenues up 5.9%; net profit pummelled by FOREX shifts

11 Mar 2015

Russian mobile giant MegaFon has reported consolidated revenues of RUB314.795 billion (USD5.136 billion) for the twelve months ended 31 December 2014, up 5.9% year-on-year. OIBDA for 2014 increased 4.5% on an annualised basis, to reach RUB138.520 billion, although net profit slumped 28.8% y-o-y, to RUB36.726 billion. MegaFon has blamed the weak bottom line on non-cash charges related to the significant depreciation of the ruble in Q4 2014. Meanwhile, CAPEX for the full year increased 19.8% to RUB56.472 billion, it said.

In operational terms, the number of active mobile subscribers reported by MegaFon and its regional subsidiaries stood at 72.2 million as at 31 December 2014, representing an increase of 3.0% y-o-y. Of this figure, MegaFon’s domestic unit accounted for 69.7 million customers, including 27.7 million data users. Other MegaFon units include TT-Mobile in Tajikistan, Aquafon GSM in the Republic of Abkhazia and Ostelecom in the Republic of South Ossetia; the last two named regions being breakaway republics of neighbouring Georgia.

Ivan Tavrin, CEO of MegaFon, commented: ‘I am pleased to announce that, despite the considerable financial turmoil during the second half of 2014, MegaFon has been able to achieve results in 2014 that are fully consistent with our guidance throughout the year for both revenue and OIBDA. I would like to highlight that this guidance was not reviewed or changed throughout the year … 2015 will likely be a challenging year for MegaFon. We will continue our efforts to rationalise expenses and improve operating efficiencies. We will continue to invest to enhance the quality of our network, which is of the utmost importance in maintaining our leading position in respect of coverage and capacity, while at the same time focusing on maintaining efficiency in our capital expenditures.’

Russia, MegaFon