MegaFon 1Q15 revenues drop 1.2% to RUB73.98bn; net profit climbs 2.4% to RUB7.40bn

30 Apr 2015

MegaFon, Russia’s second largest cellular operator by subscribers, has reported consolidated revenue of RUB73.98 billion (USD1.44 billion) for the three months ended 31 March 2015, a 1.2% decrease on the RUB74.88 billion generated in 1Q14. Operating income before depreciation and amortisation (OIBDA) dropped 1.7% year-on-year to RUB31.96 billion, but net profit for the January-March period increased 2.4% to RUB7.40 billion. Capital expenditure was 3.1% lower at RUB8.35 billion to RUB8.09 billion.

In operational terms, MegaFon’s consolidated subscriber base increased 3.3% y-o-y to 72.0 million, of which 69.5 million are based in its domestic market (up 2.8%); MegaFon’s subsidiaries include Megafon-Tajikistan (formerly TT Mobile), Aquafon in the Republic of Abkhazia and Ostelecom in the Republic of South Ossetia. MegaFon said that the total number of data users on its network reached 27.3 million at end-March, with 6.4 million 4G-enabled devices now connected to its network. Long Term Evolution (LTE) services are now available in 74 federal regions, equivalent to 52% of Russia’s population, with two regions added to its footprint in 1Q15. 4G coverage is live in 14 out of 15 Russian cities with a population above one million.

Ivan Tavrin, CEO of MegaFon, commented: ‘I am happy to announce that despite the current difficult economic environment, in Q1 2015 MegaFon produced very good results, increasing its net profit and achieving an OIBDA margin which was significantly higher than its previously announced guidance for 2015. This is the result of the strong performance of our flagship mobile data segment and well planned liabilities management and foreign currency risk strategy.’

Russia, MegaFon