Support The Moscow Times!

MegaFon Q1 Down 8%

Profit and margins at No. 2 telecoms operator MegaFon slipped in the first quarter as it prepares for an initial public offering in London that could raise $4 billion.

The company said first-quarter net profit fell 8.1 percent year on year to 9.27 billion rubles ($306 million), hit by network expansion costs and foreign exchange losses. Revenue rose 14.4 percent to 63.1 billion rubles, while operating income before tax and amortization rose 7.3 percent to 25.5 billion rubles, giving it a margin of 40.5 percent, down from 43.2 percent.

The company, which plans an IPO that a source previously said could be in the second half of 2012, is controlled by Russia's richest man, Alisher Usmanov, who took his holding to a majority last month by buying some of the shares held by oligarch Mikhail Fridman and Nordic telecoms firm TeliaSonera.

(Reuters)

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more