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Russia's Megafon Q1 net income falls 43 pct, below fcast
May 29, 2014 / 6:12 AM / 3 years ago

Russia's Megafon Q1 net income falls 43 pct, below fcast

MOSCOW, May 29 (Reuters) - Russia’s second-biggest mobile phone operator Megafon said on Thursday its first-quarter net profit fell 43 percent from a year ago, missing expectations, due to increased depreciation and amortisation costs related to an acquisition.

Megafon, controlled by Russia’s richest man Alisher Usmanov, reported a net profit of 7.2 billion roubles ($208 million), down from 12.6 billion roubles in the same period of 2013, while analysts had forecast 10 billion roubles.

The bottom line was eroded by depreciation and amortisation costs related to the acquisition of Scartel as well as foreign exchange losses resulting from the rouble’s weakening.

Quarterly revenues rose 10.6 percent to 74.9 billion roubles, slightly above the 74.8 billion Reuters poll forecast and ahead of its full-year guidance for 6-8 percent growth which Megafon reiterated in a Thursday statement. ($1 = 34.5882 Russian Roubles) (Reporting by Maria Kiselyova; Editing by Megan Davies)

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