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MegaFon sharply increased its net profit in 2021, but revenues decreased
MegaFon today reported on its work in the last quarter and 2021 as a whole: one of the largest Russian mobile operators showed mixed results.
In the period from October to December inclusive, the company received 87.5 billion rubles of revenue. This is 6.1% less than the result for the same period last year. At the same time, adjusted net profit increased by 117.4% to 4.4 billion rubles.
For 2021 as a whole, MegaFon received 332.2 billion rubles in revenue, which is 4.8% less than in 2021. Adjusted net profit soared by 157.3%, reaching 26.6 billion rubles.
It is noted that according to the results of the past year, MegaFon’s subscriber base decreased by 6% — to 70.4 million. However, this is primarily due to the introduction of a new accounting system, which provides for more stringent requirements for checking user activity.
“Using the new methodology, the subscriber base in Russia in the fourth quarter of 2021 amounted to 70.4 million. When compared with the indicators of 2021 in uniform accounting standards, the base remains at the same level and does not show a negative trend. The new system will allow the company to use the number capacity more efficiently, «the report says.
It is also said that by the end of 2021, the size of MegaFon’s retail network amounted to approximately 3,700 stores, which is 300 stores less than a year earlier. The total number of visitors to these points of sale in the fourth quarter was 28% lower than in the last quarter of 2021.