Support The Moscow Times!

MegaFon Q1 Net Down 2% on Charges

MegaFon, the country's second-biggest mobile phone operator, said Tuesday that its first-quarter net profit fell by nearly 2 percent year on year because of higher depreciation and amortization charges.

The company, which last year overtook VimpelCom as the No. 2 player behind MTS, said Tuesday that net profit fell to 10.09 billion rubles ($359.2 million) from 10.28 billion a year ago.

MegaFon, almost 44 percent owned by Nordic telecoms operator TeliaSonera, said quarterly depreciation and amortization expenses rose more than 30 percent on the same period a year ago, offsetting an 18 percent rise in revenue.

Sales, driven by revenue from wireless data transfer, amounted to 55.2 billion rubles, but operating profit decreased 4 percent to 12.2 billion.

MegaFon is unlisted, but analysts see its results as an indication of the performance of public Russian peers.

Operating income before depreciation and amortization rose 11.1 percent to 23.8 billion rubles, with OIBDA margin falling to 43.2 percent from 45.8 percent a year ago.

Read more

Independent journalism isn’t dead. You can help keep it alive.

As the only remaining independent, English-language news source reporting from Russia, The Moscow Times plays a critical role in connecting Russia to the world.

Editorial decisions are made entirely by journalists in our newsroom, who adhere to the highest ethical standards. We fearlessly cover issues that are often considered off-limits or taboo in Russia, from domestic violence and LGBT issues to the climate crisis and a secretive nuclear blast that exposed unknowing doctors to radiation.

Please consider making a one-time donation — or better still a recurring donation — to The Moscow Times to help us continue producing vital, high-quality journalism about the world's largest country.