Russian cellco MegaFon’s revenue grew by 2.0 % year-on-year to RUB81.1 billion (USD1.1 billion) in the first quarter of 2021, with operating income before depreciation and amortisation (OIBDA) improving by 0.3% to RUB36.1 billion, although the OIBDA margin declined by 0.8 percentage points to 44.5%. CAPEX in January-March 2021 decreased by 38.3% y-o-y to RUB7.1 billion, while Q1 net profit jumped 46.1% y-o-y to RUB7.6 billion.
Service revenue for Q1 2021 was up 0.9% y-o-y to RUB74.1 billion driven by an increase in revenue from data and digital services, in particular, solutions for remote work and remote management of facilities, big data services and content services. Factors negatively impacting service revenue continued to be mainly: falling international roaming revenues; an outflow of guest workers due to international travel restrictions amid the continued pandemic; and lower activity and reduced spending on services by subscribers. However, customer activity and the retail market gradually improved during 1Q21 as revenue from sales of equipment and accessories grew 14.4% y-o-y to RUB7.0 billion, driven by strong sales of high-end smartphones and increased demand for in-store services.