UPDATE: Russia’s MegaFon IFRS net profit slides 45% to 7 bln rbl Apr–Jun

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MOSCOW, Jul 27 (PRIME) -- The net profit of Russian mobile operator MegaFon decreased 44.9% on the year to 7.127 billion rubles in April–June, as calculated under International Financial Reporting Standards (IFRS), the company said in a statement on Wednesday.

Revenue rose 3.39% to 78.723 billion rubles. Revenue from mobile data transfer rose 6.3% to 20.687 billion rubles.

“In the second quarter, MegaFon’s consolidated revenue increased by 3% on the year which is in line with our guidance announced at the beginning of the year. Nevertheless, the intensified competition in the sector caused some changes in our revenue structure and put pressure on our wireless business,” CEO Sergey Soldatenkov said, as cited in the statement.

The operating income before depreciation and amortization (OIBDA) fell 14.9% to 29.554 billion rubles, OIBDA margin declined to 37.5% from 45.6%. Capital expenditures rose 2.8% to 12.893 billion rubles, free cash flow was 9.605 billion rubles.

The net debt of MegaFon was 167.135 billion rubles in the end of the reported period.

(65.7408 rubles – U.S. $1)

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