DJ EQS-News: PJSC MegaFon: MegaFon reports financial and operating results for Q3 2018
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PJSC MegaFon: MegaFon reports financial and operating results for Q3 2018
(news with additional features)
2018-12-20 / 10:00 MSK
The issuer is solely responsible for the content of this announcement.
*MegaFon reports financial and operating results for Q3 2018*
*Press-release*
Moscow, Russia (20 December 2018) - PJSC "MegaFon" ("MegaFon" or the
"Company" and, together with its consolidated subsidiaries, the "Group")
(MOEX: MFON), a pan-Russian operator of digital opportunities, announces its
financial[1] and operating results for Q3 2018.
Key financial and operating highlights for Q3 2018[2]
- Revenue increased by 4.7% y-o-y[3] to RUB 88,733 million
- OIBDA[4] increased by 0.9% y-o-y to RUB 33,654 million
- OIBDA margin4 was 37.9% versus 39.4% in Q3 2017
- Net Profit[5] decreased by 4.6% y-o-y to RUB 7,744 million
- CAPEX increased by 47.0% y-o-y to RUB 18,478 million
- Free Cash Flow to Shareholders increased by 31.5% y-o-y to RUB 14,226
million
- Net Debt as of 30 September 2018 was RUB 276,382 million
- The number of mobile subscribers as of 30 September 2018 decreased by 0.4%
y-o-y to 76.9 million[6]
Gevork Vermishyan, the Group's Chief Executive Officer, commented on the
financial and operating results as follows:
*«* *Financial results*
In Q3 2018 we continued to work on our digital strategy
implementation: we have stayed with our objectives, focusing
on digital clients and developing our digital services
ecosystem, which has led to positive trends in our key
performance indicators. In Q3 2018 our consolidated revenue
went up by 4.7% y-o-y to RUB 88.7 billion, and our total
service revenue increased by 6.3% y-o-y to RUB 80.6 billion,
driven by wireless revenue growth and in particular by data
revenue growth which is up 11.8% y-o-y. Wireline revenue has
also gone up 17.3% y-o-y - being driven both by revenues
from traditional services and by revenues from digital
projects which we have been completing for B2G clients under
the 'Safe City' projects of the State's Digital Economy
programme, already implemented in various regions of Russia,
as well as infrastructure development for the FIFA World
Cup, and other information and communication technology
(ICT) projects being undertaken as part of our digital
strategy. Our OIBDA increased by 0.9% y-o-y driven by
revenue growth and adoption of the new IFRS standards;
however, OIBDA margin declined to 37.9% by 1.5 p.p. y-o-y
because of higher general and administrative expenses mainly
resulting from an increase in spectrum fees.
*Digital services ecosystem development*
MegaFon's digital solutions are experiencing high demand
from subscribers and corporate clients. Services such as
mobile finance services and MegaFon.TV, our travel
solutions, and our personalised tariffs are steadily
becoming more popular and, as a result, are driving VAS
revenue up as anticipated by our development strategy.
We are also expanding the ecosystem of services for our B2X
clients. MegaFon was the first among telecom operators to
offer a digital recruitment solution. We also launched a
security application for smartphones and tablets called
'MegaFon Antihack', upgraded our solution protecting against
DDoS attacks, and launched a Business clouds solution.
In Q3 2018 we have opened a business innovations centre
located in our headquarters in Moscow, where we showcased
our entire digital solutions ecosystem for business - from
setting up a new point of sales to personnel recruitment. In
the centre, clients can learn about and test the
effectiveness of the latest solutions from MegaFon.
Our infrastructure, which is both the largest and the
"best-in-kind", supports our development efforts. Its
quality has been confirmed by our clients - according to
Ookla, MegaFon internet has been rated the fastest in Russia
for the second year in a row, based on 7.9 million speed
checks on users' mobile equipment made in Q1 and Q2 2018
using the SpeedTest(R) application.
*Partnerships with market leaders*
One of the key steps in achieving our strategic goals is
partnering with other telecom, IT and internet market
leaders. Recently we announced an important strategic
agreement with the Russian Direct Investment Fund (RDIF),
Alibaba Group and Mail.Ru Group aimed at creating the
largest e-commerce joint venture in Russia and the CIS. We
plan to combine our respective resources to offer
unprecedented benefits for retailers, consumers and
internet-users and to accelerate the development of the
digital economy in Russia.
We also see huge potential in dealing with Big Data and
realise that for future development the market needs a set
of ground rules to regulate interactions between Big Data
owners. This is why we, together with other key players,
have founded the Association of Big Data Market
Participants, the goal of which is to enable development of
Big Data technologies and products in Russia.
S*uccessful completion of repurchase programme for ordinary
shares and GDRs and delisting from LSE*
As previously announced, in July 2018 the Board determined
that remaining a public company is no longer a priority for
us. Accordingly, we provided an opportunity to our minority
shareholders to sell their ordinary shares and GDRs at a
premium to the market price by way of a tender offer, which
has now been successfully completed. The purchase price was
set at US$9.75 per 1 GDR/1 ordinary share (or RUB 659.26 at
the rate of the Central Bank of Russia as of the date of
announcement of the tender offer results). The tender offer
was clearly well received by shareholders because 89.4% of
them tendered their shares and, as a result of the
repurchase programme the free float has gone from 20.8% to
2.2% of total number of issued shares. Effective 5 October
2018 the listing and admission to trading of MegaFon's GDRs
on London Stock Exchange was cancelled.
On 10 December 2018 MegaFon Finance LLC, a wholly-owned
subsidiary of MegaFon, cancelled all of the GDRs which were
held by it, and received the corresponding number of
ordinary shares. Upon the cancellation of the GDRs, MegaFon
Finance LLC became the owner of 139,616,537 ordinary shares
of MegaFon, which, together with the shares held by the
controlling shareholder AF Telecom Holdings LLC, constitutes
78.84% of the Company's issued ordinary shares, and
according to the Federal Law "On Joint Stock Companies",
requires that we make a mandatory tender offer to other
shareholders to acquire the ordinary shares held by them.
Accordingly, on 11 December 2018 MegaFon Finance LLC
submitted the documentation relating to the mandatory tender
offer to the Central Bank of Russia for review.
MegaFon Finance has obtained the required corporate and
regulatory approvals for carrying out the mandatory tender
offer to acquire ordinary shares of MegaFon.
For the purposes of the performance by MegaFon Finance of
its obligations to make the mandatory tender offer, the
Company entered into a suretyship agreement with Bank GPB
(JSC) for the amount of up to RUB 90 billion to secure
performance of MegaFon Finance's obligations under its
agreement with Bank GPB (JSC) for the issuance of a bank
guarantee, required to file the mandatory tender offer.
*»*
*Financial results*[7]
*(In millions of RUB, except as indicated)*
*Three Months* *Nine Months*
*Q3 *Q3 *Q3 *9m *9m *9m
2018* 2017* 2018/ 2018* 2017* 2018/
Q3 2017* 9m 2017*
Revenue 88,733 84,720 4.7% 247,137 237,169 4.2%
Wireless 72,298 68,746 5.2% 205,003 196,750 4.2%
Services
Including 26,110 23,355 11.8% 74,033 66,204 11.8%
data
revenue
Wireline 8,314 7,088 17.3% 22,664 19,648 15.4%
Services
Sales of 8,121 8,886 (8.6%) 19,470 20,771 (6.3%)
equipment
&
accessori
es
OIBDA 33,654 33,339 0.9% 96,481 92,985 3.8%
OIBDA 37,9% 39,4% (1.5 39,0% 39,2% (0.2
Margin p.p.) p.p.)
Net 7,744 8,121 (4.6%) 19,935 17,482[8 14.0%
Profit ]
Net 8,7% 9,6% (0.9 8,1% 7,4% 0.7 p.p.
Profit p.p.)
Margin
CAPEX 18,478 12,566 47.0% 43,196 33,852 27.6%
CAPEX / 20.8% 14.8% 6.0 p.p. 17.5% 14.3% 3.2 p.p.
Revenue
*Financial results, Russia only*[9]
*(In millions of RUB, except as indicated)*
*Three Months* *Nine Months*
*Q3 *Q3 *Q3 *9m *9m *9m
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DJ EQS-News: PJSC MegaFon: MegaFon reports financial -2-
2018* 2017* 2018/ 2018* 2017* 2018/
Q3 2017* 9m 2017*
Revenue 87,329 83,529 4.5% 243,434 233,940 4.1%
Wireless 70,904 67,569 4.9% 201,328 193,548 4.0%
Services
Including 25,556 22,935 11.4% 72,570 65,115 11.4%
data
revenue
Wireline 8,305 7,074 17.4% 22,638 19,622 15.4%
Services
Sales of 8,120 8,886 (8.6%) 19,468 20,770 (6.3%)
equipment
&
accessori
es
OIBDA 33,247 33,440 (0.6%) 95,470 93,068 2.6%
OIBDA 38.1% 40.0% (1.9 39.2% 39.8% (0.6
Margin p.p.) p.p.)
Net 8,178 9,406 (13.1%) 21,262 19,9638 6.5%
Profit
Net 9.4% 11.3% (1.9 8.7% 8.5% 0.2 p.p.
Profit p.p.)
Margin
*Revenue*
Total revenue in Q3 2018 increased by 4.7% y-o-y to RUB 88,733 million,
while our service revenue grew by 6.3% to RUB 80,612 million. Revenue from
Russia remained the major component in this segment, accounting for
approximately 98.4% of total revenue.
In Q3 2018 our wireless service revenue, including data revenue, increased
by 5.2% y-o-y to RUB 72,298 million driven by continued growth in mobile
data revenue which increased by 11.8% y o-y to RUB 26,110 million.
Wireless service revenue grew as a result of increases in both average
revenue per user and data traffic consumption per user. The key driver
behind the growth continued to be the tariff line "Vklyuchaisya!"
("Connect!") which has been going strong since its launch a year ago in Q2
2017 coupled with certain modifications, such as introduction of a new
tariff plan "Vklyuchaisya! Smotri+" ("Connect! Watch plus"), as well as the
tariff line for B2X clients "Upravlyai!" ("Manage!") which was launched last
quarter. During the FIFA World Cup the one-time surge in wireless services
consumption also had a positive impact on wireless revenue.
Another significant driver of wireless revenue continued to be our
VAS-revenue, including revenue from rendering digital products and services
such as mobile finance services, MegaFon.TV and others - up by 29.5% y-o-y
in Q3 2018. VAS revenue increased as a result of revisions to our pricing
policies following a multiple-factor analysis of the market and our service
portfolio values. The FIFA World Cup also had a noticeable impact on
MegaFon.TV revenue as traffic was five times higher than usual during the
period of the event.
In Q3 2018 wireline service revenue increased by 17.3% y-o-y to RUB 8,314
million. The key contributors to the growth were the increased revenue from
the FIFA World Cup infrastructure development, supplying goods and services
under the "Safe City" projects of the State's Digital Economy Programme, and
other ICT contracts with B2G clients.
Revenue from sales of equipment and accessories in Q3 2018 decreased by 8.6%
y-o-y to RUB 8,121 million. This was mainly caused by a reduction in the
number of our retail outlets in line with our strategy announced in 2017.
While we experienced a boost in revenue from sales of newly launched models
of Samsung, Xiaomi and Apple handsets, this was insufficient to offset the
impact of the reduction in the number of our outlets.
*OIBDA and OIBDA Margin*
OIBDA in Q3 2018 increased by 0.9% y-o-y to RUB 33,654 million. This
increase includes a positive impact from the adoption of the new accounting
standard, 'IFRS 15 - Revenue from Contracts with Customers', in the amount
of RUB 515 million. Organic OIBDA in Q3 2018 slightly decreased by 0.6%
y-o-y to RUB 33,139 million.
The increase in total revenue of 4.7% was offset by an increase in VAS costs
due to more expensive VAS-content products being included into our products
portfolio, the negative impact of adverse foreign currency rates, higher
advertising expenses as we promoted new marketing initiatives, a significant
increase in spectrum expenses following the revision of charges by the
regulator, and higher personnel expenses resulting from an increase in the
number of highly skilled professionals being engaged to work on implementing
our digital ecosystem strategy.
OIBDA Margin in Q3 2018 decreased by 1.5 p.p. y-o-y to 37.9%. Organic OIBDA
Margin decreased by 2.1 p.p. y-o-y to 37.3%, in both cases mainly due to the
increase in spectrum fees and personnel expenses mentioned above.
*Net Profit*
Net Profit in Q3 2018 decreased by 4.6% y-o-y to RUB 7,744 million. And
after eliminating the positive IFRS 15 impact of RUB 412 million, organic
Net Profit decreased by 9.7% y-o-y to RUB 7,332 million. The decreases in
both cases were mainly the result of an increase in amortisation expense due
to spectrum and software acquisitions over the last year, a higher share of
losses from associates and joint ventures acquired over the last year and
higher financing costs resulting from the increase in corporate debt noted
below, offset in part by foreign exchange gains from deposits held in
foreign currencies.
*CAPEX*
CAPEX in Q3 2018 increased by 47.0% to RUB 18,478 million driven by the
continued roll-out of LTE and LTE-Advanced networks, development of our
billing platform and investment in equipment required to comply with
Yarovaya (data storage) law.
*Free Cash Flow to Shareholders*
Free cash flow to shareholders in Q3 2018 increased by 31.5%, or by RUB
3,406 million y-o-y, to RUB 14,226 million due to an increase in operating
cash flows which significantly exceeded the increased CAPEX and interest
payments.
*Net Debt*
Net debt increased by 28.7% from RUB 214,743 million as of 30 June 2018 to
RUB 276,382 million as of 30 September 2018 due to the loans drawn to
finance the repurchase of ordinary shares and GDRs pursuant to the tender
offer made in July 2018. As of 30 September 2018 our Net debt/OIBDA ratio
was 2.2x.
*EPS*
Basic and diluted EPS for Q3 2018 increased y-o-y from RUB 13 per share for
Q3 2017 to RUB 14 per share for Q3 2018 due to a reduction in the weighted
average number of shares outstanding following the repurchase of ordinary
shares and GDRs pursuant to the tender offer made in July 2018.
*New accounting standards*
Starting from 1 January 2018 we adopted the new accounting standards IFRS 15
'Revenue from contracts with customers' and IFRS 9 'Financial Instruments'.
The adoption of IFRS 9 did not have a material impact on our financial
statements. The key impact for us of the adoption of IFRS 15 was the
capitalisation of costs incurred to acquire new customer contracts, which
increased our Net Profit by RUB 412 million in Q3 2018, net of tax of RUB
103 million (the effect on Net Profit for the first 9 months of 2018
amounted to RUB 1,244 million, net of tax of RUB 311 million). We adopted
IFRS 15 using the modified retrospective method, and this increased our
deferred costs assets by RUB 1,707 million and our opening retained earnings
by RUB 1,366 million, net of tax effect.
*Outlook/Guidance*
Taking into account the Company's performance, we are upgrading our guidance
on service revenue for 2018 to grow by mid-single digits y-o-y. We reiterate
our guidance for OIBDA to stay flat and capital expenditures for 2018 to be
in the range of RUB 75 - 80 billion. The guidance is presented excluding the
impact of IFRS 15 adoption.
*Wireless subscribers in Russia as of*
*30 September *30 September *Change*
2018* 2017*
Number of wireless 75,234 75,601 (0.5%)
subscribers (K)
of which data service users 32,185 31,110 3.5%
(K)
Share of data service users 42.8% 41.2% 1.6 p.p.
Our Russian wireless subscriber base slightly decreased by 0.5% y-o-y to
75.2 million as of 30 September 2018. Our data service user base in Russia
went up by 3.5% y-o-y to 32.2 million as of 30 September 2018 and reached
42.8% of the overall subscriber base in Russia. We believe that our
continued focus on our data service revenues, which has resulted in a steady
growth in our data services portfolio, contributed materially to this growth
in data subscribers.
*Data operating indicators*
*Q3 *Q3 *Q3 2018/ *9m *9m *9m 2018/
2018* 2017* Q3 2017* 2018* 2017* 9m 2017*
ARPDU 265 246 7.7% 256 234 9.4%
(RUB)
DSU (MB) 9,232 6,679 38.2% 8,855 6,145 44.1%
ARPDU increased in Q3 2018 by 7.7% y-o-y to RUB 265 which we believe is a
direct response to our efforts to encourage data usage by our subscribers as
we continue to introduce data-service-centered products such as
"Vklyuchaisya!" ("Connect!"), "Upravlyai!" ("Manage!"), roaming options for
data users, etc.
DSU increased in Q3 2018 by 2.6 gigabytes, or 38.2% y-o-y, to 9.2 gigabytes,
as a result of the initiatives mentioned above, and supported by the market
trends of consumer digitalisation, resulting in improved smartphone
penetration (currently, penetration of smartphones represents 68.8%), while
the overall number of hi-end 4G-enabled devices registered on MegaFon's
network went up by 36.8% y-o-y- to 26.7 million devices. Data usage also
increased in Q3 due to the one-off effect of the FIFA World Cup.
*For more information*
*Investors: *Dmitry Kononov, Director of Investor Relations and M&A +7 926
200 6490
dkononov@megafon.ru
*Media:* Artem Lebedev, Head of Media Relations +7 925 696 0677
artem.lebedev@megafon.ru
*Notes to editors*
MegaFon is a pan-Russian operator of digital opportunities, operating in all
segments of the telecommunications markets in Russia, and in the Republics
of Abkhazia, South Ossetia and Tajikistan. MegaFon is a recognised market
leader in the provision of mobile data services, was the first operator in
Russia to launch commercial operation of a third generation (3G) network and
was the first operator in the world to launch commercial operation of an
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LTE-Advanced (4G) data network. MegaFon is traded on the Moscow Exchange
under the symbol MFON. Additional information about MegaFon and the products
and services provided by the Group can be found at http://www.megafon.ru.
*Disclaimers, statement regarding inside information and forward looking
statements*
The above discussion and analysis should be read in conjunction with the
Group's consolidated financial statements which are available for download
on the Group's website at: http://corp.megafon.com/investors/
Certain statements and/or other information included in this document may
not be historical facts and may constitute "forward looking statements"
within the meaning of Section 27A of the U.S. Securities Act of 1933 and
Section 2(1)(e) of the U.S. Securities Exchange Act of 1934, as amended. The
words "believe", "expect", "anticipate", "intend", "estimate", "plans",
"forecast", "project", "will", "may", "should" and similar expressions may
identify forward looking statements but are not the exclusive means of
identifying such statements. Forward looking statements include statements
concerning our plans, expectations, projections, objectives, targets, goals,
strategies, future events, future revenues, operations or performance,
capital expenditures, financing needs, our plans or intentions relating to
the expansion or contraction of our business as well as specific
acquisitions and dispositions, our competitive strengths and weaknesses, the
risks we face in our business and our response to them, our plans or goals
relating to forecasted production, reserves, financial position and future
operations and development, our business strategy and the trends we
anticipate in the industry and the political, economic, social and legal
environment in which we operate, and other information that is not
historical information, together with the assumptions underlying these
forward looking statements. By their very nature, forward looking statements
involve inherent risks, uncertainties and other important factors that could
cause our actual results, performance or achievements to be materially
different from results, performance or achievements expressed or implied by
such forward-looking statements. Such forward-looking statements are based
on numerous assumptions regarding our present and future business strategies
and the political, economic, social and legal environment in which we will
operate in the future. We do not make any representation, warranty or
prediction that the results anticipated by such forward-looking statements
will be achieved, and such forward-looking statements represent, in each
case, only one of many possible scenarios and should not be viewed as the
most likely or standard scenario. We expressly disclaim any obligation or
undertaking to update any forward-looking statements to reflect actual
results, changes in assumptions or in any other factors affecting such
statements.
*Schedule 1: Definitions*
*ARPDU (Average Monthly Revenue Per Data Services User) *is calculated for a
given period by dividing the Group's data services revenues for a given
period by the average number of its data services users during that period,
and further dividing the result by the number of months in that period.
*Capital Expenditures (CAPEX)* comprises the cost of purchases of new
equipment, new construction, acquisition of new or upgrades to software,
acquisition of spectrum and other intangible assets, and purchases of other
long-term assets, together with related costs incurred prior to the intended
use of the applicable assets, all accounted for as of the earliest time of
payment or delivery. Long-term assets obtained through business combinations
are not included in the calculation of capital expenditures.
*Data service user* is defined as a subscriber who has consumed any amount
of data traffic within preceding month.
*Diluted EPS* is calculated by adjusting both numerator and denominator in
the EPS calculation so as to reflect the effect of including the additional
shares that would have been outstanding if all options and other rights to
acquire shares had been converted into actual shares.
*DSU (Monthly Average Data Services Usage per User)* is calculated by
dividing the total number of megabytes transferred by our network during a
given period by the average number of data services users during such period
and dividing the result by the number of months in such period.
*EPS (Earnings per Share)* means an amount of the Group's profit allocated
to one share of its stock, and is calculated by dividing Net Profit for a
reporting period by the weighted average number of shares outstanding during
the period. No earnings are allocated to treasury shares.
*Free Cash Flow to Shareholders* means cash from operating activities, less
cash paid for purchases of property, equipment and intangible assets and
interest paid, increased by proceeds from sales of property and equipment
and interest received. It is a financial measure which should be considered
as supplementary but not as an alternative to the information provided in
the Group's financial statements. A reconciliation of free cash flow and
cash from operating activities is provided in Schedule 2.
*Group *means PJSC "MegaFon" together with its consolidated subsidiaries.
Previously, the Group had consolidated the financial position and the
results of operations of its subsidiary, Mail.Ru Group Limited ("Mail.Ru"),
from the beginning of 2017. As of June 2018, the Group concluded that it no
longer had the ability to direct relevant activities of Mail.Ru, and
therefore no longer had control over that company. Accordingly, the Group
ceased to consolidate the financial position and the results of operations
of Mail.Ru, with effect from the end of Q2 2018. Information relating solely
to Mail.Ru can be found at https://corp.mail.ru/en/investors/.
*LTV* means lifetime value of a subscriber, i.e. the present value of the
future cash flows attributed to the subscriber during his/her entire
relationship with the Group.
Net debt position means the difference between (a) cash, cash equivalents,
and principal amount of deposits and (b) principal amount of loans and
borrowings less unamortised debt issuance fees. It is a financial measure
which should be considered as supplementary but not as an alternative to the
information provided in the Group's financial statements. A description of
how the metric is calculated is provided in Schedule 2.
*Net Profit *is profit for the period from continuing operations
attributable to equity holders of the Group grossed up for intragroup
amounts between MegaFon Group and Mail.Ru Group.
*Organic Net Profit* is Net Profit excluding the impact of new IFRS
standards. Starting from 1 January 2018, MegaFon has adopted new IFRS
standards, namely: IFRS 9 "Financial instruments" and IFRS 15 "Revenue from
Contracts with Customers". For convenience of comparison with prior periods,
with respect to the financial year 2018, MegaFon shall be presenting its
financial results as reported, i.e. including the impact of IFRS 9 and IFRS
15, and organically, i.e. excluding the impact of adoption of the mentioned
standards.
*OIBDA (Operating Income Before Depreciation and Amortisation) *is a
financial measure not defined by IFRS, should be considered as supplementary
and not as an alternative to the information provided in the financial
statements of the Group. OIBDA margin means OIBDA as a percentage of
revenue. OIBDA and OIBDA margin are widely used by investors, analysts and
rating agencies as a measure to evaluate and compare current and future
operating performance and to determine the value of companies within the
telecommunications industry. However, the Group's definition of OIBDA and
OIBDA margin may not be directly comparable to similarly named financial
measures and disclosures by other companies. A reconciliation of OIBDA to
operating profit is provided in Schedule 2.
*Organic OIBDA* is OIBDA, and organic OIBDA margin is OIBDA margin, in each
case net of the impact of IFRS 15 adoption. The adoption of IFRS 9 did not
have a material impact on our financial statements.
*Wireless Subscriber* is defined as each SIM card that is activated in our
billing system or has had at least one chargeable traffic event (that is,
use of voice, VAS or data transfer services) within the preceding three
months, whether chargeable to the subscriber or to a third party (for
example, interconnection charges payable by other operators). Where an
individual person holds more than one SIM card, each SIM card is included as
a separate subscriber.
*Schedule 2: Reconciliations of Non-IFRS financial measures*[10]
*(In millions of RUB, except as indicated)*
*OIBDA*
*Q3 *Q4 *Q1 2018* *Q2 2018* *Q3
2017* 2017* 2018*
Operating profit 17,369 12,517 14,790 15,973 16,988
Depreciation 13,786 14,086 12,227 12,229 12,473
Amortisation 2,070 2,020 3,658 3,914 4,017
Loss/(gain) on 114 242 (109) 145 176
disposal of
non-current
assets
OIBDA 33,339 28,865 30,566 32,261 33,654
IFRS 15 effect - - (562) (478) (515)
Organic OIBDA - - 30,004 31,783 33,139
*OIBDA margin as percentage of revenue*
*Q3 2017* *Q4 2017* *Q1 2018* *Q2 2018* *Q3 2018*
Operating 20.5% 14.8% 19.3% 19.5% 19.1%
profit
Depreciation 16.3% 16.6% 16.0% 14.9% 14.1%
Amortisation 2.5% 2.4% 4.8% 4.8% 4.5%
Loss/(gain) on 0.1% 0.3% (0.1%) 0.2% 0.2%
disposal of
non-current
assets
OIBDA Margin 39.4% 34.1% 40.0% 39.4% 37.9%
IFRS 15 effect - - (0.8%) (0.6%) (0.6%)
Organic OIBDA 39.4% 34.1% 39.2% 38.8% 37.3%
Margin
*Net Profit and Net Profit margin*
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