Russian cellco MegaFon reported its results for the fourth quarter of 2019, showing its total revenue increased by 5.4% year-on-year to RUB93.2 billion (USD1.2 billion) in the three-month period, while service revenue rose by 1.3% to RUB80.4 billion and sales of equipment/accessories jumped by 41.5% to RUB12.8 billion. Operating income before depreciation and amortisation (OIBDA) increased by 39.8% y-o-y to RUB38.5 billion, while adjusted net profit improved by 78.5% to RUB2.0 billion compared to the same period of 2018.
MegaFon said that service revenue in October-December 2019 was mainly driven by mobile data revenue growth as a result of an upgrade of the ‘Connect!’ tariff line incorporating digital solutions and partner services. An increase in revenue from ICT services provided to public sector clients also had a positive impact on sales in wireless services and at MegaFon’s wireline division. In Q4 2019 CAPEX was RUB31.3 billion, down 18.2% y-o-y, with reductions in spending made possible ‘as a result of the significant investments in upgrading the billing platform which were made in 2018’. In the quarter MegaFon activated 2,470 new LTE and LTE-A base stations.