Experts: COVID-19 pandemic costs Russian operators 30 bln rbl

MOSCOW, Jun 22 (PRIME) -- The coronavirus pandemic has cost Russian mobile operators 30 billion rubles, including direct losses and unexpected expenses with the operators’ retail business and roaming revenue being impacted the most, information and analytical agency Content Review said on Monday in a research.

The pandemic period includes March, April, and May, but the operators started experiencing first signs of the negative influence already in February, while consequences of the disease and the lockdown will be felt at least through the end of 2020.

“The operators’ retail chains continued to work in the lockdown in a restricted mode. A fall in revenue in the sector resulted from several factors. First, the sale of new SIM cards almost stopped. Second, amid the dynamics of the national currency rate and an actual decline in purchasing power, many buyers delayed purchase of new gadgets,” the experts said.

“Finally, amid the lockdown, many buyers preferred using remote channels of sale. Growth of online sales was seen in the operators’ retail chains, but it failed to compensate for a fall in sales in usual stores.”

Content Review sees a negative financial impact from the pandemic on the operators’ retail business at 12 billion rubles.

The experts also valued a negative impact on incomes from roaming services at 9 billion rubles.

The lockdown and the days off announced by the president led to a relocation of intensiveness of the use of services to uptown areas from downtown, and the operators were forced to create additional capacities. Content Review estimated unexpected expenses at 6 billion rubles.

The experts expect revenue of the mobile operators to decrease by 9–11% in 2020.

The outlook does not take into account a possible second wave of the pandemic.

(69.5725 rubles – U.S. $1)

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