DJ EQS-News: PJSC MegaFon: MegaFon reports results for Q1 2019
EquityStory.RS, LLC-News: PJSC MegaFon / Key word(s): Quarter
Results/Quarterly / Interim Statement
PJSC MegaFon: MegaFon reports results for Q1 2019 (news with additional
features)
2019-05-30 / 09:00 MSK
The issuer is solely responsible for the content of this announcement.
*MegaFon reports results for Q1 2019*
Press-release
Moscow, Russia (30 May 2019) - 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 Q1 2019.
*Key financial and operating highlights for Q1 2019*[2]
· Revenue increased by 4.8% y-o-y[3] to RUB 80,128 million
· Including the positive impact of IFRS 16 OIBDA increased by 15.2% y-o-y
to RUB 35,226 million and organic OIBDA was RUB 30,189 million
· OIBDA Margin was 44.0% and organic OIBDA Margin was 37.7% versus 40.0%
in Q1 2018
· Net Profit including the impact of IFRS 16 decreased by 63.8% y-o-y to
RUB 2,187 million and organic Net Profit decreased by 49.7% y-o-y to RUB
3,036 million
· CAPEX decreased by 6.2% y-o-y to RUB 7,963 million
· Free Cash Flow to Shareholders[4] increased by RUB 12,218 million y-o-y
and amounted to RUB 12,065 million
· Net Debt as of 31 March 2019 was RUB 363,294 million
· The number of mobile subscribers[5] as of 31 March 2019 increased by
0.9% y-o-y to 76.9 million
*Gevork Vermishyan, the Group's Chief Executive Officer*, commented on the
financial and operating results as follows:
« *Financial results*
Our financial results in Q1 2019 continued the positive growth
trends from previous quarters and confirmed that our digital
leadership strategy adopted in 2017 was the right choice.
Our revenue is up 4.8% y-o-y to RUB 80.1 billion, while
service revenue is up 2.7% y-o-y to RUB 72.8 billion. Both
increases were supported by a significant growth in mobile
data revenue which is up 8.1% y-o-y to RUB 25.1 billion. Our
mobile data revenue remains the key driver of our wireless
revenue. Continued uptake in our popular services and products
and an upgrade of our 'Vklyuchaisya!' ('Connect!') tariff line
enabled us to strengthen our leadership position in the
industry. Our clients actively use our online services: they
watch films, listen to music and spend more time online. In Q1
2019 each client used on average 10.7 gigabytes of traffic,
i.e. 27,6% more than the year before.
Our efforts to streamline our retail network enabled us to
stabilise and then achieve growth in our revenue from
equipment and accessories, which increased by 31.0% y-o-y to
RUB 7.4 billion.
OIBDA including the positive effect of the implementation of
IFRS 16, the new accounting standard for leases, is up 15.2%
y-o-y to RUB 35.2 billion. Organic OIBDA, calculated without
taking into account the impact of IFRS 16 is RUB 30.2 billion.
*Digital revenue*
As we are implementing our digital strategy, revenue from
digital services is becoming a more significant driver of our
growth. Digital services include various VAS-services, such as
MegaFon TV, games, music and other content services, mobile
finance, M2M-services, IT-services, and information and
communication services such as services rendered under the
State Digital Programme, known as 'Safe City' and 'Smart City'
solutions. As a result of the rapid development of these
services, our digital revenue in Q1 2019 increased by 50.3%
y-o-y.
*Looking to the future*
A digital company is first of all a developed ecosystem of
digital services for clients and the best technologies for
rendering those services. In Q1 we launched large-scale NB IoT
networks in the Sverdlovsk and Khabarovsk regions in order to
promote internet-of-things in Russia. We also completed the
acquisition of Neosprint Spb which owns the 3.4GHz-3.6GHz
frequencies band in St. Petersburg, because we believe that
this purchase will improve the prospects for development of 5G
in the area.
We continue moving forward with respect to 'Smart City'
projects. The latest projects on the map of 'Smart Russia' are
Sochi, and cities in the Kalmykiya, Tula and Ryazan regions
whose local authorities have agreed to a long-term partnership
with MegaFon.
A strategic agreement between 'City innovation technologies',
the largest real estate management company in the North-West
Russia market, MegaFon and NetbyNet will enable the parties to
develop housing and utilities markets at a completely new
technological level, using new technologies, increasing the
quality of service, and introducing new standards of quality
in Russia, by means of the automation of housing and utilities
processes and implementation of our 'Digital managing company'
solution.
*The Company and the Society*
We feel responsible to society and recognise our ability to
provide help in the here and now; therefore we are happy to be
the first company in Russia to provide a fully functioning
solution to search for and rescue lost children and adults.
The unique MegaFon technology, which is based on Big Data
analysis and targeted messaging, has been assisting a
nonprofit organisation "The Centre of lost people search" and
the search-and-rescue volunteer group "Liza Alert" in finding
people across the country for a number of months now.
In early spring we signed an agreement with the "Pan-Russian
organisation of endoscopic surgeons by V. Fedorov" which
enables the best Russian doctors to exchange their experience
in rescuing people across the country and build on their
skills via online translation of surgeries using our
Telemedicine platform -another new project of ours.
This spring we have been confirmed as a telecom partner of the
Russian football team and a partner of the Russian Football
Association until 2021, which is an important achievement for
us, especially following our successes in relation to World
Cup 2018.
*MegaFon for clients*
Our focus on providing leadership in quality of services and
continuous improvement of our service portfolio enables us to
actively develop the digital ecosystem for all categories of
our clients. Introducing new digital services and offers
improves the client experience, increases the loyalty and LTV
of our clients and provides monetisation of data services for
us. Using Big Data analysis we provide our clients with access
to the best innovations, including having the first world
digital finance marketplace right in their smartphones. Thanks
to our partnership with MasterCard our clients have the
ability to access banking services from largest financial
institutions in the country from their personal MegaFon
account.
Thorough analysis of our clients' decision making patterns
enabled us to launch the third generation 'Vklyuchaisya!'
('Connect!') tariff line. This tariff line which was
originally issued in 2017 has now been upgraded to provide a
unique savings opportunity for our clients with cashback now
being granted on various services, including international
calls.
At the end of April MegaFon and KARO cinemas launched a
partnership project which we regard as a trend-setting
precedent for online and offline cinemas collaboration. When
buying a cinema ticket on karofilm.ru viewers can subscribe
for free to the MegaFon.TV bundle 'Films subscription+KARO'
which includes more than 2,000 foreign and domestic films.
With the bundle users also get a 25% discount on KARO cinema
tickets.
As part of our long-term partnership with Mail.Ru Group we
developed a platform for automation of the logistics processes
of transport companies. This innovative solution combines the
latest digital services of both partners and produces instant
comparison of freight costs, provides automatic updates to all
the parties of the transportation process, including delivery
dates and all the information for ordering warehouse passes,
and enables e-signature or mobile signature on transport
documents. Signatures can even be made using the keypad on a
mobile phone. The user-friendly platform is integrated with
DPD and Business Lines transport companies and saves
considerable time on order management.
The platform has been tested and is planned to be launched at
the end of Q2 2019. This product will significantly increase
the efficiency and transparency of the transport process and
logistics, and we expect it to be popular with our B2B
clients.
*Appointment of CFO*
As of 13 May 2019 Nikita Orlov has been appointed chief
financial officer of MegaFon. Mr Orlov has broad managerial
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experience in finance and treasury having worked as a top
manager in major Russian companies, investment banks and
financial institutions. He will be responsible for financial
and management accounting and reporting, investments,
budgeting, corporate finance and risk management.
*Squeeze-out request*
As we earlier announced, as part of the mandatory tender offer
which expired on 7 March 2019, LLC MegaFon Finance, a
wholly-owned subsidiary of MegaFon, acquired 126,246,094
ordinary shares of the Company (or 20.36% of the ordinary
shares). As a result, the number of shares of the Company held
by LLC MegaFon Finance, together with ordinary shares held by
its affiliates, amounted to approximately 99.2% of total
ordinary shares of the Company. Accordingly, the Group became
entitled to proceed with a squeeze-out purchase of the
remaining shareholders of the Company pursuant to Article 84.8
of Federal Law No. 208-FZ on Joint Stock Companies dated 26
December 1995, and on 17 April 2019 LLC MegaFon Finance
notified the Company of its intention to purchase the
remaining ordinary shares from the Company's shareholders.
The squeeze-out price is RUB 659.26 per ordinary share and
will be paid in cash to the holders of the ordinary shares who
are the shareholders as of 3 June 2019. Payment of the
squeeze-out price is expected to be made within no more than
25 days of such date.»
*Financial results
(In millions of RUB, except as indicated)*
*Excluding IFRS 16
impact*
*Q1 2019* *Q1 2018* *Q1 *Q1 2019* *Q1 2019/
2019/ Q1 2018*
Q1
2018*
Revenue 80,128 76,459 4.8% 80,128 4.8%
Wireless 66,325 64,388 3.0% 66,325 3.0%
Services
Including 25,132 23,241 8.1% 25,132 8.1%
data
revenue
Wireline 6,441 6,451 (0.2%) 6,441 (0.2%)
Services
Sales of 7,362 5,620 31.0% 7,362 31.0%
equipment
&
accessori
es
OIBDA 35,226 30,566 15.2% 30,189 (1.2%)
OIBDA 44.0% 40.0% 4.0 37.7% (2.3 p.p.)
Margin p.p.
Net 2,187 6,037 (63.8%) 3,036 (49.7%)
Profit
Net 2.7% 7.9% (5.2 3.8% (4.1 p.p.)
Profit p.p.)
Margin
CAPEX 7,963 8,491 (6.2%) 7,963 (6.2%)
CAPEX / 9.9% 11.1% (1.2 9.9% (1.2 p.p.)
Revenue p.p.)
*Financial results, Russia only*[6]
*(In millions of RUB, except as indicated)*
*Excluding IFRS 16
impact*
*Q1 2019* *Q1 2018* *Q1 *Q1 2019* *Q1 2019/
2019/ Q1 2018*
Q1
2018*
Revenue 78,855 75,370 4.6% 78,855 4.6%
Wireless 65,062 63,308 2.8% 65,062 2.8%
Services
Including 24,560 22,802 7.7% 24,560 7.7%
data
revenue
Wireline 6,432 6,443 (0.2%) 6,432 (0.2%)
Services
Sales of 7,361 5,619 31.0% 7,361 31.0%
equipment
&
accessori
es
OIBDA 34,536 30,270 14.1% 29,541 (2.4%)
OIBDA 43.8% 40.2% 3.6 37.5% (2.7 p.p.)
Margin p.p.
Net 2,375 6,363 (62.7%) 3,224 (49.3%)
Profit
Net 3.0% 8.4% (5.4 4.1% (4.3 p.p.)
Profit p.p.)
Margin
*Revenue*
Total revenue in Q1 2019 increased by 4.8% y-o-y to RUB 80,128 million.
Revenue from Russia remained the major component, accounting for over 98.4%
of total revenue.
In Q1 2019 our wireless revenue, including data revenue, increased by 3.0%
y-o-y to RUB 66,325 million. Data revenue was up 8.1% y-o-y to RUB 25,132
million. The reason for both increases is the continued growth in data
consumption in the market generally and our efforts to capitalise on this
trend by providing more attractive product offerings such as innovative
tariffs, including the upgraded "Vklyuchaisya! 3.0" ("Connect! 3.0") tariff,
as well as promoting various initiatives such as "Buy one Samsung smartphone
get another one free", and "Gigateka" and other bundled offerings which
result in more subscriptions to our data-consuming services.
Our revenue from VAS-services such as mobile finance services, MegaFon TV
and other digital products increased by 14.2% y-o-y in Q1 2019 due to
marketing initiatives and also selected repricing of services undertaken
late in 2018 and in Q1 2019 as a result of market analysis which we
conducted.
In Q1 2019 wireline service revenue remained basically stable, decreasing
only slightly by 0.2% y-o-y to RUB 6,441 million.
Revenue from sales of equipment and accessories in Q1 2019 increased by
31.0% y-o-y to RUB 7,362 million as a result of our successful efforts in
streamlining our distribution network as well as an increase in sales of new
Samsung and Apple smartphones during the quarter.
*OIBDA and OIBDA Margin*
OIBDA in Q1 2019 increased by 15.2% y-o-y to RUB 35,226 million, while OIBDA
Margin increased by 4.0 p.p. y o-y to 44.0%. These increases include the
positive impact of the adoption of IFRS 16 which amounted to RUB 5,037
million. Organic OIBDA in Q1 2019 decreased by 1.2% y-o-y to RUB 30,189
million, and the organic OIBDA Margin in Q1 2019 showed a decrease of 2.3
p.p. y-o-y to 37.7%. While revenue in Q1 2019 increased by 4.8% y-o-y, this
was largely offset by growth in low-margin sales of equipment and
accessories, higher advertising expenses linked to promoting our marketing
initiatives, and higher personnel costs resulting from increases in the
number of skilled employees being hired to pursue our digital development
agenda.
*Net Profit*
Net Profit in Q1 2019 decreased by 63.8% y-o-y to RUB 2,187 million.
Eliminating the negative impact of IFRS 16 in the amount of RUB 849 million,
organic Net Profit decreased by 49.7% y-o-y to RUB 3,036 million. The major
reason for the decrease in either case was a 33.0% increase in finance
costs[7] resulting from our taking on additional financing in order to
complete the Tender Offer for shares and GDRs completed in September 2018 as
well as the Mandatory Tender Offer completed in Q1 2019.
*CAPEX*
CAPEX in Q1 2019 decreased by 6.2% to RUB 7,963 million, mainly because
CAPEX in Q1 2018 included the significant cost of our major billing platform
development project which was then still under way.
The major investment projects in Q1 2019 included the continued roll-out of
LTE and LTE-Advanced coverage and investment in equipment required to comply
with the Yarovaya (data storage) law.
*Free Cash Flow to Shareholders*[8]
Free cash flow to shareholders in Q1 2019 increased by RUB 12,218 million to
RUB 12,065 million. The increases in either case resulted from an increase
in operating cash flows and lower CAPEX payments this year.
*Net Debt*8
Net debt increased by 23.4% from RUB 294,318 million as of 31 December 2018
to RUB 363,294 million as of 31 March 2019 due to the additional financing
taken on for purposes of the Mandatory Tender Offer. Our Net debt/OIBDA
ratio was 2.94x.
*EPS*
Basic and diluted EPS decreased from RUB 10 per share for Q1 2018 to RUB 5
per share for Q1 2019, in line with the decrease in Net Profit.
*New accounting standard*
Starting from 1 January 2019 we adopted the new accounting standard IFRS 16
'Leases'. The standard requires lessees to present right-of-use assets and
lease liabilities on the balance sheet for all leases (with limited
exceptions). As a result of this our operating expenses for Q1 2019
decreased by RUB 5,037 million, while our finance costs and depreciation
increased - all of which decreased our Net Profit by RUB 849 million in Q1
2019, net of tax.
On transitioning to IFRS 16 we recognised a right-of-use asset and a lease
liability in respect of our operating leases - both in the amount of RUB
88,679 million as at 1 January 2019.
The Company continues to fine tune its information systems to streamline the
accounting for leases under IFRS 16. The effects of transition to IFRS 16
are unaudited and certain management estimates and calculations may be
subject to change up till the issuance of the Company's 2019 annual
financial statements.
*Wireless subscribers in Russia as of*
*31 March 2019* *31 March 2018* * Change*
Number of wireless 75,301 74,541 1.0%
subscribers (K)
_of which data service 33,786 30,914 9.3%
users (K)_
Share of data service 44.9% 41.5% 3.4 p.p.
users
Our Russian wireless subscriber base increased by 1.0% y-o-y to 75.3 million
as of 31 March 2019 driven by a 9.3% y-o-y increase (to 33.8 million ) in
our data service user base in Russia which is the result of our successful
efforts in attracting data-using clients via targeted marketing initiatives
such as "Buy one Samsung smartphone get another one free" and "Gigateka", as
well as development of "Vklyuchaisya!" ("Connect!") tariff.
Accordingly, our share of data service users continued to grow and reached
44.9% of the overall subscriber base in Russia.
*Data operating indicators*
* Q1 2019 * * Q1 2018 * *Q1 2019/ * * Q1 2018 *
ARPDU (RUB) 246 246 0.0%
DSU (MB) 10,916 8,557 27.6%
In Q1 2019 ARPDU remained at the same level as last year in the amount of
RUB 246.
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DSU increased in Q1 2019 by 2.4 gigabytes, or 27.6% y-o-y, to 10.7 gigabytes
as a result of a positive response to our marketing initiatives focused on
data consumption and digital products, including the upgraded
"Vklyuchaisya!" ("Connect!") tariff line.
*For more information*
*Investors: *Dmitry Kononov, Director of Investor Relations and M&A +7 925
696 6490
dkononov@megafon.ru
_Media:_ Artem Lebedev, Head of Media Relations +7 925 696 0677
artem.lebedev@megafon.ru
*Notes to editors*
*PJSC "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 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/ [1]
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.
*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, and *organic Net Profit Margin* is Net
Profit Margin, in each case excluding the impact of IFRS 16 adoption.
MegaFon adopted this new IFRS standard, effective 1 January 2019. For
convenience of use, throughout the financial year 2019, MegaFon will be
presenting its financial results "as reported", i.e. including the impact of
IFRS 16, and "organically", i.e. excluding the impact of the adoption of
IFRS 16.
*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 excluding the impact of IFRS 16 adoption.
*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
(In millions of RUB, except as indicated)*
*OIBDA*
*Q1 *Q2 *Q3 *Q4 *Q1 2019
2018*[9] 2018*9 2018* 2018* *
Operating profit 14,790 15,973 16,988 10,584 13,978
Depreciation 12,227 12,229 12,473 12,325 16,204
Amortisation 3,658 3,914 4,017 4,527 4,946
(Gain)/loss on (109) 145 176 125 98
disposal of
non-current
assets
OIBDA 30,566 32,261 33,654 27,561 35,226
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IFRS 16 effect - - - - (5,037)
Organic OIBDA 30,566 32,261 33,654 27,561 30,189
*OIBDA Margin as percentage of revenue*
*Q1 2018 * *Q2 *Q3 2018* *Q4 2018* *Q1 2019 *
2018 *
Operating 19.3% 19.5% 19.1% 12.0% 17.4%
profit
Depreciation 16.0% 14.9% 14.1% 13.9% 20.2%
Amortisation 4.8% 4.8% 4.5% 5.1% 6.2%
(Gain)/loss on (0.1%) 0.2% 0.2% 0.2% 0.2%
disposal of
non-current
assets
OIBDA Margin 40.0% 39.4% 37.9% 31.2% 44.0%
IFRS 16 effect - - - - (6.3%)
Organic OIBDA 40.0% 39.4% 37.9% 31.2% 37.7%
Margin
*Net Profit and Net Profit Margin*
*Q1 2018*9 *Q2 2018*9 *Q3 2018 * *Q4 2018 * *Q1 2019 *
Net 6,037 6,154 7,744 1,133 2,187
Profit
IFRS 16 - - - - 849
effect
Organic 6,037 6,154 7,744 1,133 3,036
Net
Profit
Net 7.9% 7.5% 8.7% 1.3% 2.7%
Profit
Margin
IFRS 16 - - - - 1.1%
effect
Organic 7.9% 7.5% 8.7% 1.3% 3.8%
Net
Profit
Margin
*Net debt as of*
*31 Mar *30 Jun *30 Sep *31 Dec *31 Mar
2018* 2018* 2018* 2018* 2019*
Cash and 24,345 14,553 36,916 27,214 17,152
cash
equivalents
Bank 4,125 21,912 4,119 4,352 -
deposits
(principal
amount)
Loans and (260,260) (251,208) (317,417) (325,884) (380,446)
borrowings
(principal
amount)
less
unamortised
fees and
discounts
Net debt (231,790) (214,743) (276,382) (294,318) (363,294)
*Free cash flow to shareholders*
*Q1 2018 * *Q2 *Q3 2018* *Q4 2018* *Q1
2018* 2019*10]
Net cash flows 24,213 25,363 34,842 20,785 34,652
from operating
activities
Purchase of (19,426) (11,522) (15,187) (30,411) (15,681)
property,
equipment and
intangible
assets
Proceeds from 373 341 7 6 2
sale of
property and
equipment
Interest 235 209 434 583 585
received
Interest paid (5,548) (6,524) (5,870) (8,034) (7,493)
Free cash flow (153) 7,867 14,226 (17,071) 12,065
to
shareholders
[1] Based on the interim unaudited condensed consolidated financial
statements for Q1 2019 reviewed by JSC KPMG.
[2] See Schedule 1 for definitions of the terms used and Schedule 2 for the
reconciliation of Non-IFRS measures. Due to rounding actual numbers and
calculations for financials and KPIs may differ from those set forth in this
release.
[3] Year over year ("y-o-y") stands for the same periods in the current and
previous year on either a quarterly or yearly basis.
[4] This is shown without taking into account the effect of the IFRS 16
implementation.
[5] Includes subscribers of the Company in Russia and the subscribers of its
subsidiaries: "TT mobile" CJSC in the Republic of Tajikistan, "AQUAFON-GSM"
CJSC in the Republic of Abkhazia and "OSTELEKOM" CJSC in the Republic of
South Ossetia.
[6] Excluding mutual settlements with "TT mobile" CJSC, "AQUAFON-GSM" CJSC
and "OSTELEKOM" CJSC
[7] This is shown without taking into account the effect of the IFRS 16
implementation.
[8] This is shown without taking into account the effect of the IFRS 16
implementation.
[9] The amounts are presented as reported results from continuing operations
grossed up for the intragroup amounts between the Group and Mail.Ru Group.
[10] This is shown without taking into account the effect of the IFRS 16
implementation.
Additional features:
Document: http://n.eqs.com/c/fncls.ssp?u=HTFJIVBFDM [2]
Document title: Interim condensed unaudited consolidated financial
statements
2019-05-30 MSK Dissemination of a Corporate News, transmitted by
EquityStory.RS, LLC - a company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The EquityStory.RS, LLC Distribution Services include Regulatory
Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de
817485 2019-05-30 MSK
1: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=5532f4fa75acf781ddd28914a6c2a24e&application_id=817485&site_id=vwd&application_name=news
2: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=17ee253d82c61bb926bb853bc2eb894a&application_id=817485&site_id=vwd&application_name=news
(END) Dow Jones Newswires
May 30, 2019 02:00 ET (06:00 GMT)
© 2019 Dow Jones News
