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MegaFon ups IFRS net profit by 36.5%, beating the expectations, announces dividends. [IntelliNews - Weekly Reports](IntelliNews - Weekly Reports Via Acquire Media NewsEdge) One of Russia's three largest mobile operators MegaFon increased its IFRS net profit by 36.5% y/y to RUB 12.64bn (USD 404mn) in Q1/13. This beats the expectations of RUB 10bn net profit in Reuters analyst survey. Revenues in Q1/13 went up by 7.6% y/y to RUB 67.72bn, almost exclusively generated in Russia. At the same time, data services revenue in the reporting quarter went up by 22% y/y to RUB 10.4bn. OIBDA went up by 26.8% y/y to RUB 32.38bn at a margin of 47.8% vs. 40.5% for the same quarter of the previous year (expectation of RUB 29.4bn and 42.8%, respectively). Higher margin was attributed, among other, to lower costs due to new contracts with dealers. Subscriber base in Russia went up by 1.7% y/y to 62.66mn users, making it second largest operator in the country in terms of subscribers. Net debt as of end of Q1/13 declined by 16% to RUB 100.8bn. MegaFon also announced increasing its performance targets for 2013: OIBDA margin is now seen at up to 44% vs. previous 43%, and revenue growth is expected to approach 10% vs. 9% previously. Capital spending is expected to increase to RUB 55bn-RUB 60bn in 2013 vs. RUB 44.1bn in 2012. Also debut dividends for 2012 amounting to RUB 64.51 (USD 2.05) per ordinary share will be paid for 2012 and Q1/13, MegaFon said. This would make USD 1.3bn in dividend payout, 88% of 2012 profit and 51% of Q1/13 profit. To compare, other two major operators VimpelCom and MTS paid out all of its net profit for 2012 in dividends. To remind, in fall 2012 MegaFon finished a 25% IPO in London and Moscow. The book was closed at USD 20, the lower price of the USD 20-USD 25 range, thus having the company valued at USD 11.1bn and MegaFon raising USD 1.7bn. MegaFon reportedly agreed to pay at least 50% of profit in dividend. After a recent ownership structure change and the IPO, Telecom Holding controlled by tycoon Alisher Usmanov holds 55.8% plus one share in MegaFon, Swedish TeliaSonera has its stake down from 35.6% to 29%, 15.2% of shares floating free. According to various reports up to 10%-15% of the shares proposed were acquired by an anchor investment fund. MegaFon was supposed to start a road-show for an IPO earlier this fall, but decided to postpone it to be able to base the offer on Q3/12 financials and to fully incorporate results of the acquisition of 50% of Euroset phone retail chain. (c) 2013 Emerging Markets Direct Media Holdings LLC Provided by Syndigate.info an Albawaba.com company |