MegaFon posts 43% decline in Q1 net profit

29 May 2014

Russian mobile giant MegaFon has reported consolidated group revenues of RUB74.876 billion (USD2.17 billion) for the first quarter of 2014, an increase of 10.6% from RUB67.724 billion in the year-ago period. Wireless services revenue grew 8.6% year-on-year to RUB64.719 billion, driven by data revenue, which rose 45.2% from RUB11.134 billion in Q1 2013 to RUB16.166 billion a year later. Turnover from wireline services, meanwhile, totalled RUB5.294 million in the three months to end-March 2014, an increase of 17.1% year-on-year. While OIBDA for 1Q14 remained largely flat at RUB32.503 billion, increased depreciation and amortisation, primarily linked to the acquisition of Scartel, and foreign exchange losses due to the revaluation of foreign currency net liabilities, resulted in consolidated net profit declining by 42.7% to RUB7.228 billion in the first quarter of 2014 from RUB12.624 billion a year earlier. CAPEX for the quarter increased by over 104% year-on-year to RUB8.353 billion.

The number of active mobile subscribers reported by MegaFon and its regional subsidiaries stood at 69.7 million as at 31 March 2014, representing an increase of 7.5% year-on-year. Of this figure, the company’s domestic unit accounted for 67.627 million wireless customers (up 7.9%), including 25.958 million data service users (18.3%). Other MegaFon units include TT-Mobile in Tajikistan, Aquafon GSM in the Republic of Abkhazia and Ostelecom in the Republic of South Ossetia; the last two named regions being breakaway republics of neighbouring Georgia.

Russia, MegaFon,

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