Despite the decrease in MegaFon's quarterly revenue, analysts positively evaluated its results

    Megafon has published financial results for the second quarter. OIBDA margin increased 0.9 percentage points to 45.6%. Free cash flow increased by 35% to 19.3 billion. The operator’s total revenue decreased year-on-year by 0.7%. Megafon's GDRs on the London Stock Exchange on July 30 rose 3.67% to 12.7%. The company's mobile revenue in the Russian market grew by 0.6% compared to last year and reached 65.8 billion. Analysts praised the company's results.

    Two quarters in a row, MegaFon’s mobile revenue in Russia was down 0.4% and 1.7%, respectively. Now the company has managed to reverse this trend. According to Raiffeisenbank analystSergey Libin, mobile revenue increased due to accelerated growth in company revenue from data transfer. This quarter they grew by 20.8%. While in the previous two quarters their growth was 15.4% and 10.1%, respectively.

    For three months, the number of subscribers to data services has grown by more than a million, and the entire subscriber base - by 2 million SIM cards. This is due to the start of sales of Megafon contracts in Svyaznoy stores . The increase in revenue from data transfer, the adviser to the CEO of Megafon, Mikhail Dubin, explains the increase in LTE consumption: the share of devices that transmit data in the Megafon database, he said, is almost 50%, while the share of LTE devices is 23%.

    In the II quarter, revenue from the sale of equipment year-on-year decreased by 19.6%, or almost a billion rubles. From this quarter, the Company ceased to publish statements of the cost of equipment sold, pass "Vedomosti".

    36% of smartphone sales were in the segment with prices ranging from 2,000 to 3,500 rubles. Mikhail Dubin believes that this is a very large reduction in price. At the same time, the operator’s margin from the sale of equipment is positive, the representative of Megafon Tatyana Zvereva assures.

    MegaFon’s capital expenditures in the second quarter of 2015 amounted to 12.5 billion rubles, which is 6.4% lower than a year earlier. These costs depend on the LTE network deployment schedule. In addition, a project to create a unified billing system will require investments. According to the results of the year, MegaFon’s capital expenditures will amount to no more than 65 billion rubles, Kommersant writes .

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