MegaFon General Director Sergey Soldatenkov. MegaFon outpaced key competitors, MTS and VimpelCom, in rates of revenues growth in the second quarter. Its revenues stepped up 48 percent on year to $1.37 billion.
Photo: Dmitry Dukhanin
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MegaFon Steps Up Ahead of Competitors
Russia’s third top cellular operator, MegaFon released the Q2 accounting report yesterday. According to the analysts, MegaFon outpaced key competitors, MTS and VimpelCom, in rates of revenues growth. Its revenues stepped up 48 percent on year to $1.37 billion. The reasons of this promising movement are efficient market policy of the operator and concentration of its efforts on the market of Russia.
The Q2 achievements of MegaFon competitors were less impressive. MTS grew revenues by 37 percent, while VimpelCom manifested the increase of 43 percent. Moreover, MegaFon neared VimpelCom in terms of OIBDA margin – 52.6 percent vs. 53.4 percent respectively – and outpaced MTS, which posted only 51.8 percent.
MegaFon’s ARPU on Russia’s market was the biggest of the trio - $14 vs. $9.2 and $12.3 posted by MTS and VimpelCom respectively. “We are encouraging demand, but we don’t want to make our services expensive and we are conservative when taking into account active subscribers,” MegaFon briefer Marina Belasheva commented on the Q2 report of the operator.
According to Andrey Bogdanov from Troika Dialog, MegaFon is ahead of competitors for a number of reasons. “The operator carries out efficient tariff policy. A minute at MegaFon net costs roughly 10 percent below MTS and VimpelCom, $0.056 on average. The subscribers think MegaFon a cheap operator and, as a result, speak more than subscribers of competitors. Under the MegaFon report, each of them spoke 239 minutes a month on average in the second quarter,” Bogdanov explained.
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All the Article in Russian as of Oct. 02, 2007
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