MegaFon Q1 Net Profit Down 8% to $309 Mln

MegaFon, one of Russia’s three largest mobile phone operators, saw its Q1 net profit fall 8.1 percent year on year to 9.27 billion rubles ($309 million) to US GAAP, the company said on Monday.

The company said its net profit declined in the reporting period due to increased depreciation charges for large capital investment in infrastructure development in 2011.

The company’s first quarter revenue rose 14.4 percent to 63.1 billion rubles. MegaFon’s OIBDA rose 7.3 percent to 25.5 billion rubles, while the OIBDA margin fell to 40.5 percent from 43.2 percent a year earlier.

The company’s free cash flow reached 9.5 billion rubles.

The number of the company’s active mobile phone users grew by 0.5 percent quarter on quarter to 63.1 million subscribers.


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