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14 November 2019

In Q3 2019 MegaFon increased its revenue by 1.4% y-o-y

Moscow, Russia (14 November 2019) — PJSC “MegaFon” (“MegaFon” or the “Company” and, together with its consolidated subsidiaries, the “Group”), a pan-Russian operator of digital opportunities, announces its financial and operating results for Q3 2019.

Key results for Q3 2019

  • Revenue increased by 1.4% y-o-y to RUB 90.0 billion.
  • OIBDA increased by 15.8% y-o-y to RUB 39.0 billion.
  • OIBDA Margin was 43.3%.
  • Net profit was RUB 3.2 billion.
  • CAPEX decreased by 37.2% y-o-y to RUB 11.6 billion.
  • Net debt decreased since last quarter to RUB 350.3 billion.
  • The number of mobile subscribers in Russia as of 30 September 2019 increased by 0.1% y-o-y to 75.3 million.
  • The number of data service users in Russia as of 30 September 2019 increased by 6.2% y-o-y to 34.2 million.

In Q3 2019 MegaFon unveiled a number of new products for its clients. These included providing its clients with a single point of access for wireless services, home internet and MegaFon TV via its convergeant product called “Obyedinyai! (Unite!)”, as well as implementing a flexible system for increasing cashbacks on its “Vklyuchaisya!” (“Connect!”) tariffs.

The transformation of MegaFon’s retail network through the introduction of “new generation” stores, focused on the provision of top quality client service and a unique customer experience, is proceeding well and showing promising initial results. The daily average number of clients visiting the upgraded stores in Q3 2019 is up 20%, and the daily average revenue for such stores in Q3 2019 is up between 30% and 40%, in each case as compared with the corresponding figures prior to the stores’ transformation.

Total revenue from sales of equipment and accessories is up 36.5% y-o-y. The suppliers which are the most popular with Russian consumers are Huawei/Honor, Samsung, Xiaomi, and Apple. Demand for new Apple models at the end of the quarter was three times higher than the year before, and the order backlog for the new models before their launch date in September 2019 was up 20% y o y compared to the order backlog in September 2018 for the prior year’s new models.

MegaFon continues working on reducing its leverage and using part of its profits to pay down the debt. (As a reminder, the Company’s leverage increased as a result of a series of buy-backs of its shares and GDRs during 2018 and the first half of 2019.) As a result, the Company’s net debt had decreased to RUB 350.3 billion by the end of the reporting period. This enabled MegaFon to reduce the Net debt/LTM OIBDA ratio from 2.88x at the end of Q2 2019 to 2.80x at the end of Q3 2019.

MegaFon continues the roll-out of LTE and LTE Advanced networks. At the same time CAPEX in the quarter was lower than the year before because of the completion of major projects for the upgrade of the billing platform and financial software on which the Company had been working in 2018.

Download full press release in PDF

Operational and Financial Data Pack

Download Q3 2019 Results presentation

For more information

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17 December 2020

Resolutions taken by the Board of Directors

Moscow, Russian Federation (17 December 2020) — Public Joint Stock Company “MegaFon”, a pan‑Russian operator of digital opportunities (“MegaFon” or the “Company”), announces that MegaFon’s Board of Directors at a meeting held on 16 December 2020, took the following actions:
26 November 2020

MegaFon announces Q3 2020 financial results

The Company was able to increase its net profit and reduce leverage despite the continued impact of the pandemic.

27 October 2020

Notice of Q3 2020 results

Moscow, Russian Federation (27 October 2020) — Public Joint Stock Company “MegaFon”, a pan-Russian operator of digital opportunities (“MegaFon” or the “Company”), will announce its operating and financial results for the third quarter / nine months ended 30 September 2020 on Thursday, 26 November 2020 at 10.00 (Moscow time).