Bloomberg News

MegaFon Earnings Beat Estimates on Russia Mobile-Data Demand

July 31, 2014

OAO MegaFon (MFON), Russia’s second-largest wireless operator, reported earnings that beat analysts’ estimates on rising mobile-data usage.

Operating income before depreciation and amortization was little changed at 34.3 billion rubles ($967 million), Moscow-based MegaFon said today in a statement. Analysts predicted 34.1 billion rubles, the average of estimates compiled by Bloomberg. Sales advanced 6.1 percent to 76.7 billion rubles.

MegaFon, controlled by Russia’s richest man Alisher Usmanov and co-owned by Sweden’s TeliaSonera AB (TLSN), competes with billionaire Vladimir Evtushenkov’s OAO Mobile TeleSystems (MBT:US) for leadership in the country’s growing mobile-data market.

Mobile-data revenue rose 40 percent to 16.2 billion rubles. The company reiterated its forecast for 6 percent to 8 percent sales growth this year.

Net income rose 2.2 percent to 13.9 billion rubles.

To contact the reporter on this story: Ilya Khrennikov in Moscow at ikhrennikov@bloomberg.net

To contact the editors responsible for this story: Kenneth Wong at kwong11@bloomberg.net Ville Heiskanen


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Companies Mentioned

  • MBT
    (Mobile Telesystems OJSC)
    • $16.92 USD
    • -0.83
    • -4.91%
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