Russian cellco MegaFon reported that its revenues grew by 7.1% year-on-year to RUB84.1 billion (USD1.1 billion) in the second quarter of 2021, with underlying service revenue improving by 4.5% to RUB76.6 billion. In the three months ended 30 June, MegaFon’s operating income before depreciation and amortisation (OIBDA) climbed 5.6% y-o-y to RUB37.6 billion, although the OIBDA margin slipped 0.7 percentage points to 44.7%. Quarterly CAPEX rose 4.6% y-o-y to RUB13.7 billion in April-June 2021 while three-month net profit tripled compared to 2Q20, reaching RUB12.7 billion.
MegaFon highlighted a continuing recovery from the negative impact of the pandemic, with key Q2 growth drivers including revenue from data services, content services and digital services (including big data/analytical/other innovative solutions especially related to remote working and remote facilities management). Customer activity in the retail market continued to recover in the quarter, with revenue from sales of equipment and accessories increasing by 44.6% y-o-y to RUB7.5 billion, driven partly by demand for high-end smartphones.