MegaFon Q1 service revenues rise, but equipment sales drop

28 May 2020

Russian mobile and fixed network operator MegaFon announced its financial results for Q1 2020, reporting that total revenue decreased by 0.7% year-on-year to RUB79.6 billion (USD1.1 billion). In the first three months of the year service revenue increased by 0.9% y-o-y to RUB73.4 billion, including wireless (up 0.8% to RUB66.9 billion, driven by 4G mobile data use) and wireline (up 1.6% to RUB6.5 billion, driven by B2B take-up) but was offset by revenue from sales of equipment and accessories which fell 16.3% y-o-y to RUB6.2 billion. MegaFon explained that sales were negatively impacted by the closure of retail stores in various areas of Russia in March in response to the COVID-19 pandemic, with the average number of visitors to MegaFon retail outlets decreasing by 23% that month.

Quarterly operating income before depreciation and amortisation (OIBDA) climbed 2.2% y-o-y to RUB36.0 billion, boosting MegaFon’s OIBDA margin by 1.3 percentage points to 45.3%, while Q1 CAPEX jumped 44.4% y-o-y to RUB11.5 billion and net profit reached RUB5.2% in January-March, up 136.5% compared to the same period of 2019.

Russia, MegaFon