Russian mobile phone operator MegaFon said revenue growth would likely slow this year, and it will focus on profitability and preparing to pay a regular dividend.
MegaFon, which raised $1.7 billion in an initial public offering in London and Moscow in November, said Thursday that it expected high-single-digit revenue growth in 2013 after a 12.4 percent rise to 273 billion rubles ($8.9 billion) last year.
“Times when operators were just boosting their subscriber base and building networks have definitely passed, and this all should now be done with care about efficiency,” chief executive Ivan Tavrin said Thursday.
Chief financial officer Gevork Vermishyan said its 2013 margin on the basis of operating income before depreciation and amortization should be in a 41.6 to 43 percent range between the levels achieved in 2011 and 2012, respectively.
“As a company strategy, apart from revenue growth and cost cuts that are aimed at showing high profitability, we also see [as important] meeting the need of our shareholders in high dividends,” Vermishyan said.
The company has yet to decide the size of its first regular dividend, he said.
MegaFon had said it would pay an annual dividend of 50 percent of net profit or 70 percent of free cash flow, whichever was higher. Fourth-quarter net profit rose 28.3 percent to 12.4 billion rubles.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
