MegaFon, one of Russia's three largest mobile phone operators, posted a second quarter net profit of 1.7 billion rubles ($53 million) to US GAAP, down 85 percent year-on-year, the company said on Thursday.
The company’s revenues for the quarter rose 14 percent to 66.67 billion rubles. MegaFon’s OIBDA rose 12 percent to 28.26 billion rubles, while OIBDA margin fell to 42.3 percent from 43.1 percent a year earlier.
The company said its net profit declined due to losses from exchange rate volatility and revaluation of dollar-denominated liabilities as a result of the ruble’s considerable depreciation against the U.S. currency in the second quarter of 2012.
The company’s free cash flow reached 26.9 billion rubles in the first six months of the year.
The number of the company’s active mobile phone users grew by 0.8 percent on the previous quarter to 63.6 million subscribers.
