Please install Adobe Flash Player.

Consulting services

  • Market entry strategy
  • Business plan development
  • Strategy audit
  • Competitive intelligence
  • Product evaluation
  • Due diligence
  • Distributor / agent search

Research services

  • Market studies analysis / sizing and trends
  • Customer service / satisfaction surveys
  • Competitive positioning intelligence
  • Brand tracking
  • Advertising effectiveness research
  • Pricing research

Customers

  • National operators
  • International operators
  • Telecom vendors
  • Incumbents
  • New entrants
  • Governments

Megafon says net profit lifted by forex gains

PDFPrintE-mail

MOSCOW, Apr 28 (Reuters) Megafon, Russia's second-biggest mobile phone network operator, reported a 19.4 percent rise in its first-quarter net profit on Thursday thanks to foreign exchange gains but core earnings declined amid intensified competition.

Net income rose to 8.8 billion roubles ($135 million), up from 7.4 billion roubles a year ago, the company said in a statement.

But operating income before depreciation and amortisation (OIBDA) declined 5.4 percent to 30.2 billion roubles, with the profit margin of 40.8 percent down from 43.7 percent.

The decline was due mainly to higher dealer commissions as it boosted its subscriber base by 6.2 percent to 76.4 million users, Megafon said.

"We are facing competitive challenges ... that have forced the industry players to undertake aggressive initiatives to maintain or improve their market shares," Megafon said, adding it had reduced tariffs.

Earnings were also eroded by higher costs related to the expansion of the network.

The company reaffirmed it expected its revenues to be flat or grow at a single-digit rate in 2016 and its OIBDA to be in the range of 120-126 billion roubles.

It revised its capital expenditures forecast to no more than 70 billion roubles from 75 billion roubles.

In the first quarter capital expenditure jumped 76.7 percent on a year ago at 14.3 billion, including 2.2 billion roubles paid for additional radio spectrum. ($1 = 65.2380 roubles)

Tags:

Latest News

30 May 2017

ChronoPay looks to kickstart bitcoin adoption in Russia

St.-Petersburg, May 30 (Hacked.com & CCN) ChronoPay, one of Russia’s oldest online payments providers, is including bitcoin to its payment gateway, enabling all of its clients to accept the...
Read more...
12 May 2017

Russia’s largest online retailer will accept Bitcoin despite Central Bank slapdown

St.-Petersburg, May 12 (Сryptocompare) Russian e-commerce giant Ulmart is planning to start accepting bitcoin as a method of payment from 1 September, 2017. The online retailer was considering accepting...
Read more...
23 December 2016

MegaFon to buy Mail.ru stake for $740 million from Usmanov

MOSCOW, Dec 23 (Bloomberg) Alisher Usmanov and his partners are set to pocket $740 million from moving a stake in internet company Mail.ru Group Ltd. to MegaFon PJSC, as the Russian billionaire consolidates...
Read more...
20 December 2016

Deloitte says 7% Russian cell clients change operators in H1

MOSCOW, Dec 20 (PRIME) -- About 7% of Russian mobile subscribers changed their operators in January–June as compared to 4–5% of users who switched to other operators within six months in several...
Read more...
Joomla Templates and Joomla Extensions by JoomlaVision.Com