Financial Performance

MegaFon finished 2021 with a level of revenue growth not seen in several years, primarily driven by an increase in the active subscriber base and enhancements to digital services. We also posted more than a two-fold increase in net profit, consistently reduced our leverage and improved our financial health. Thanks to aggressive investments in infrastructure development in the past periods, we continued to reduce capital expenditures in 2021, strengthening our leadership in mobile data services.

Consolidated financial results, 2019–20211
Indicator 2019 2020 2021 2021/2020. %
Revenue, RUB billion 349.0 332.2 354.2 6.6
  • Service revenue
310.8 303.0 316.4 4.4
— Mobile revenue 280.4 274.5 284.62 3.7
— Fixed-line revenue 30.4 28.5 31.8 11.5
  • Sales of equipment and accessories
38.2 29.2 37.8 29.7
OIBDA, RUB billion 151.6 147.8 147.7 0.0
OIBDA margin, % 43.4 44.5 41.7 —2.8 p. p.
Net profit, RUB billion 10.33 26.6 66.3 148.9
Net profit margin, % 3.0 8.0 18.7 10.7 p. p.
CAPEX, RUB billion 67.3 54.7 47.0 —14.2
CAPEX/revenue, % 19.3 16.5 13.3 —3.2 p. p.
Net debt, RUB billion 320.4 309.6 244.6 —21.0
ЧNet debt/OIBDA, x 2.11x 2.09x 1.65x —0.44x
  1. Based on the IFRS consolidated financial statements for 12M 2021 audited by JSC KPMG. Due to manual rounding, financial and operating results may differ from those presented here. All changes are shown for the same periods in the current and previous year on a quarterly basis, unless otherwise indicated, including IFRS 16 impact.
  2. Including other revenue amounted to RUB 2.7 billion.
  3. Excluding revaluation of investment in an associate (non-monetary item).


In 2021, amid an economic recovery and easing COVID-19 restrictions, MegaFon’s revenues came in at RUB 354.2 billion, a record-high 6.6% growth since 2013, increasing across all main segments.

Service revenue was up 4.4% to RUB 316.4 billion in 2021.Growth in the mobile segment was mainly driven by mobile data due to a higher number of active subscribers, content services, including START, as well as M2M and big data analytics services. Another positive factor was the climbing demand for international roaming. In the fixed-line segment, the growth was mainly attributed to an increase in international traffic and ICT projects.

In 2021, revenue from sales of equipment and accessories increased 29.7% y-o-y to RUB 37.8 billion as a result of stronger customer activity in the retail market compared to the previous year. The highest sales growth was seen in high-end smartphones.

Russian revenue is a major component of MegaFon’s total revenue and accounts for 98% of total revenue.


OIBDA remained almost flat in 2021 at RUB 147.7 billion, while the margins decreased by 2.8 p.p. to 41.7%, on the back of overall revenue growth. OIBDA margins were primarily impacted by higher advertising costs rebounding after the pandemic, higher employee and rental costs as stores reopened and employees moved back to the office, and higher sales of equipment and accessories, which historically demonstrate lower margins.

Net profit

Net profit for 2021 grew 148.9% to RUB 66.3 billion. In addition to cost management efforts, such as cutting finance costs, considerable deleveraging and successfully hedging FX positions, net profit was boosted by the deal to contribute the assets of JSC First Tower Company (FTC) to an independent operator at the end of 2021.


In 2021, CAPEX decreased to RUB 47.0 billion, down 14.2% y-o-y. Thanks to heavy network investments in previous years, MegaFon continues to expand its infrastructure and maintains its market leadership in mobile data while scaling CAPEX down. In 2021, investments were mainly aimed at maintaining parameters and stability of the network and services and increasing the number of base stations, primarily to enhance the 4G/LTE network quality.

Capital expenditures in 2019—2021, RUB billion

financial performance

Liquidity and financial stability

In 2021, MegaFon had sufficient liquidity and continued to consistently reduce its leverage. At the end of the reporting period, the Company’s net debt totalled RUB 244.6 billion, down 21.0% y-o-y, with the net debt/OIBDA ratio down by 0.44x to 1.65x.

A major portion of MegaFon’s debt portfolio is denominated in roubles, and the Company takes a prudent approach to hedging its FX and interest rate risks using derivative financial instruments. As at end-2021, MegaFon’s total debt structure was organically diversified across instruments and maturities, with 28% of the debt portfolio having maturities of four years or more.

The Company has a significant number of available sources of debt financing. We monitor all developments in the financial markets and take steps to ensure timely response and mitigate any negative impacts.

Debt portfolio as at 31 December 2020 and 2021, %

By instrument

financial performance
financial performance
financial performance

By currency

financial performance
financial performance
financial performance

By maturity

financial performance
financial performance
financial performance