MegaFon IFRS net profit falls 4.6% to 7.7 bln rbl in Jul–Sep

MOSCOW, Dec 20 (PRIME) -- The net profit of big Russian mobile operator MegaFon decreased 4.6% on the year to 7.744 billion rubles in July–September, as calculated under International Financial Reporting Standards (IFRS), the company said on Thursday in a statement.

Revenue increased 4.7% to 88.733 billion rubles. Operating income before depreciation and amortization (OIBDA) rose 0.9% to 33.654 billion rubles. OIBDA margin lost 1.5 percentage points to 37.9%.

Capital expenditures increased 47% to 18.478 billion rubles. Free cash flow to shareholders grew 31.5% to 14.226 billion rubles.

The net debt was at 276.382 billion rubles as of September 30.

The number of mobile subscribers decreased 0.4% on the year to 76.9 million as of September 30.

“In July–September 2018 we continued to work on our digital strategy implementation: we have stayed with our objectives, focusing on digital clients and developing our digital services ecosystem, which has led to positive trends in our key performance indicators,” CEO Gevork Vermishyan said.

In January–September, the net profit increased 14% to 19.935 billion rubles. Revenue grew 4.2% to 247.137 billion rubles.

OIBDA added 3.8% to 96.481 billion rubles. OIBDA margin lost 0.2 percentage points to 39%. Capital expenditures increased 27.6% to 43.196 billion rubles.

The company also updated its guidance on service revenue for 2018 to grow by mid-single digits on the year. “We reiterate our guidance for OIBDA to stay flat and capital expenditures for 2018 to be in the range of 75–80 billion rubles,” MegaFon said.

(67.1121 rubles – U.S. $1)

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