MegaFon posts Q1 10 bln rbls net profit

MegaFon, one of Russia’s three largest mobile phone operators, posted a first quarter GAAP net profit of 10.091 billion rubles ($359 million) on Tuesday, down 1.9 percent on the previous year.

Consolidated revenue rose 18 percent to 55.156 billion rubles, MegaFon said.

“Net income for the first quarter of 2011 decreased by 1.9% compared to the first quarter of 2010, because the revenue growth was offset by the increase in depreciation expense related to the substantial increase in fixed assets put into use at the end of 2010,” the firm said.

“The decrease in revenue and respective decrease in operating income in the first quarter of 2011 compared to the fourth quarter of 2010 resulted in the decrease in net income by 20.3%.”

OIBDA rose 11.1 percent to 23.807 billion rubles. OIBDA margin fell 43.2 percent from 45.8 percent.

MegaFon’s OIBDA from mobile business amounted to 22.927 billion, with a 44.3 percent margin. OIBDA from fixed-line communications reached 880 million rubles.

Capital expenses skyrocketed by over 200 percent to 13.068 billion rubles in the first quarter of 2011.

MegaFon said its subscriber share rose to 25.4 percent from 24.4 percent in the same period last year.

MOSCOW, May 17 (RIA Novosti)


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