MegaFon strengthens focus on digital transformation

MegaFon is the undisputed leader in terms of mobile speed that has reflected in the growth of data customers and revenue during the second quarter of 2019.
MegaFon CEO Gevork Vermishyan has focused on significantly increasing its operational efficiency, and invested in its network, accelerated implementation of new projects and launched new digital products and services as part of its strategy of digital transformation to win more customers and reduce cost.

MegaFon has reported total revenue of RUB 85.64 billion (+4.5 percent) with sales of RUB 72.05 billion (+5.55 percent) from wireless, RUB 6.69 billion (–152 percent) from wireline and RUB 6.86 billion (+20.2 percent) from equipment and accessories.

MegaFon’s data revenue rose 13.5 percent. MegaFon’s data customer base rose 6.9 percent to 34.4 million. MegaFon’s total subscriber base growth was 0.1 percent to reach 77.6 million during the second quarter of 2019.
MegaFon achieved top position in Ookla’s speed test for the third year in a row after hiking its Capex by 1.2 percent to RUB 16.4 billion. MegaFon has added 3,800 LTE base stations during the second quarter to enhance mobile data coverage across Russia. MegaFon’s speed has gone up to 27.31 Mbps.

MegaFon has maintained its top position in terms of the number of base stations in Russia. It has more than 240,000 base stations covering all communication standards, including 100,000 base stations supporting LTE and LTE Advanced.

OIBDA increased 20.6 percent to RUB 38.9 billion. OIBDA margin was 45.4 percent and organic OIBDA margin was 39.4 percent. Net profit was RUB 2.9 billion and organic net profit was RUB 3.8 billion.

MegaFon launched a new store called The store of the Future with an initial investment of RUB 1.5 billion.