Megafon stabilises mobile service revenue in Q2

News Wireless Russian Federation 30 AUG 2017
Megafon stabilises mobile service revenue in Q2

Revenues of Russian mobile operator Megafon grew by 13.9 percent year-on-year in the second quarter to RUB 89.689 billion, driven by its takeover of Mail.ru. Megafon said it started to see signs of recovery in the mobile market, with mobile service revenues stable year-on-year at RUB 65.290 billion, after five quarters of decline. Total telecom revenues fell 1.0 percent, due to a 13 percent drop in equipment sales. 

OIBDA increased by 15.8 percent to RUB 34.236 billion, including a 1.4 percent increase to RUB 30.677 billion in the Russian telecom market. The group OIBDA margin was 38.2 percent, up by 0.7 percentage points from a year ago. 

Adjusted net profit amounted to RUB 5.629 billion, down by 22.2 percent. The company took an impairment charge of RUB 15.917 billion in its stake in Euroset due to the difficulties in the retail market. The deal with Beeline to acquire the rest of Euroset is expected to close by year-end. 

Capital expenditure grew by 6.8 percent to RUB 13.772 billion, and free cash flow doubled to to RUB 9.935 billion. Net debt totaled RUB 217.392 billion at the end of June. 

Megafon's subscriber base increased by 1.0 percent year-on-year to 77.4 million. 

The company maintained its full-year outlook for service revenue growth flat to low single digits and OIBDA of RUB 112-118 billion. Capital expenditures for 2017 are forecast at RUB 55-60 billion. This guidance is for the telecom segment only and does not include Mail.Ru. 

Categories:

Mobile

Companies:

MegaFon

Countries:

Russian Federation

Tags:

Voice services, Data services, Financial figures

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