MegaFon Q4 revenues fall 6.1%

25 Mar 2021

Russian mobile operator MegaFon has reported that its total revenue decreased by 6.1% year-on-year in the fourth quarter of 2020 to RUB87.5 billion (USD1.1 billion) while quarterly operating income before depreciation and amortisation (OIBDA) fell 5.8% y-o-y to RUB36.3 billion. CAPEX decreased by 38.9% y-o-y to RUB19.1 billion in October-December 2020. Adjusted three-month net profit, however, increased by 117.4% y-o-y to RUB4.4 billion.

Service revenue in Q4 was RUB78.2 billion, down 2.7% y-o-y, although representing slight quarter-on-quarter improvement, as COVID-19-related negative trends persisted, including low international roaming revenues and an outflow of guest workers due to international travel restrictions, along with changes in consumer behaviour – lower activity and reduced spending on communication and value-added services during the pandemic. The decrease was partly offset by an increase in revenue from mobile data and certain digital services, including information security services and cloud solutions, which proved particularly popular as many customers shifted to working from home. Although severe lockdown restrictions on Russian retail outlets were lifted in the second half of the year, consumer spending is recovering slowly and has not yet returned to pre-COVID levels. By end-2020 MegaFon’s retail network comprised about 3,700 stores, down by 300 during the year as a result of reduced traffic and imposed restrictions. The total number of visitors to MegaFon stores in Q4 was down 28% y-o-y. Revenue from sales of equipment and accessories decreased by 27.1% y-o-y to RUB9.3 billion in the quarter.

Russia, MegaFon