In spite of negative trends in the economy and increasing competition in the telecoms, in 2015 we demonstrated solid financial and operational performance and achieved the goals we set for the year
In 2015, MegaFon’s consolidated revenue declined marginally by 0.4% year-on-year to RUB 313.4bn. Russian revenue remained the major component, accounting for over 98.4% of the Company’s total consolidated revenue. Mobile revenue increased by 0.2% y-o-y
MegaFon is currently the second-largest mobile operator in Russia in terms of revenue and subscriber base, with a 29.7% market share in total mobile subscribers
Our goal is to achieve the highest level of 4G services penetration, improve our 4G/LTE network quality and coverage, and continue to upgrade our existing 3G network. As of the end of 2015, MegaFon had the largest network among Russian mobile operatorsOur Highlights
Solid financial and operational performance was achieved in spite of negative trends in the economy and increasing competition in the telecoms industry. We have maintained our leadership position in communication quality, and further developed our pro-active customercentric approach.Read more
MegaFon is one of Russia’s largest mobile operators in terms of revenue and subscribers. We provide services in all market segments, including voice, data and other mobile and fixed-line telecommunications services, digital TV and IP telephony. We also have subsidiaries in Tajikistan, Abkhazia and South Ossetia. As of the end of 2015, Megafon provided services to 76.8 million subscribers, including 74.8 million subscribers in Russia
Our advanced infrastructure enables us to deliver a wide range of high-quality mobile services throughout Russia. In 2015, we entered new regions and increased the total number of our base stations by 9.9% to 113,230 units. Our 2G and 3G networks cover 97.7% and 89.5% of the population respectively.
As of the end of 2015, MegaFon’s 4G services available to 59.2% of the Russian population, in 77 regions of Russia and in 14 of the 15 largest cities (with a population of over 1 million people). By continuously developing our infrastructure, we want to provide our customers with fast and stable connection, high quality of connections and high speed mobile Internet.
Our high-quality services, all targeting real customer needs, extend far beyond voice, mobile and fixed-line data transfer. We also provide a range of value-added services to retail customers, business and government clients and other telecommunication service providers.
We work with corporate clients to develop and provide bespoke business solutions. We have a consumer hardware business, selling handsets and other devices. Our MegaLabs subsidiary, meanwhile, specialises in developing innovative solutions in M2M, financial services, media, content and the cloud.
In 2015, MegaFon updated its brand positioning. At the heart of the new positioning is the idea that MegaFon continuously improves quality of communication to make people across Russia feel that they are close to their loved ones, even when they are far apart.
According to a survey among the subscribers of the top four Russian mobile operators, at the end of 2015 the key unique attributes of the MegaFon brand were: ‘high communication quality’ and ’commitment to improving communication quality’ MegaFon intends to use its unique attributes to achieve its strategic objectives in 2016.
MegaFon’s own controlled distribution network include 2,096 MegaFon Retail stores, 1,980 franchised stores and approx. 4,000 stores of the nationwide Euroset chain, which we own in partnership with VimpelCom. Together, these are the primary places in which
we come into face-to-face contact with customers, adding value and enhancing our brand through the friendly and speedy resolution of issues, the delivery of professional advice and high standards of service.
We aim to improve our customers’ lives at a reasonable cost with every device we sell. Our affordable data-enabled smartphones and tablets are enabling customers to access innovative services that open up new opportunities for them right across Russia.
The wide range of 4G-enabled devices, routers, modems, dongles and other devices, which we offer in our controlled distribution channels, is making it easy to access the new world of 4G and enjoy such popular services as streaming audio, HD-video, online games, social networks and others.
Starting from 2012, MegaFon has successfully pursued a strategy of sustainable growth. The effective implementation of this strategy enabled us to build up free cash flow and increase the amount of paid dividends between 2012 and 2015
Maintain leadership in mobile data
Maintain revenue growth from value-added services
Continue the “smart development” of the retail network with focus on active subscriber base growth
Retain customers through excellence of end-to-end customer experience
Leverage potential in B2B, B2G and B2O business segments, increasing their “weight” within the Company
Leverage and realise synergies between fixed line, fixed broadband and mobile businesses
Leverage opportunities in new businesses through development and delivery of innovative products synergetic to the core business
Identify and deliver continuous operational improvements
Continue to actively develop network and service quality, combined with high efficiency
Develop management system focused on value creation