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TELIA - Telia AB News Story

SEK35.72 0.0  0.1%

Last Trade - 10:26am

Large Cap
Market Cap £12.38bn
Enterprise Value £20.74bn
Revenue £7.51bn
Position in Universe 55th / 1831

UPDATE 1-Megafon sees slower sales growth, to raise investment

Wed 5th March, 2014 8:28am
* Sees 2014 revenue rising by 6-8 pct after 9 pct in 2013 * To maintain core profit margin at at least 44 pct * To increase capex to 58-64 billion roubles (Adds details, company comment, rivals' outlook) MOSCOW, March 5 (Reuters) - Russia's second-biggest mobile phone operator Megafon  MFON.MM   MFONq.L  said on Wednesday its sales growth would fall this year, echoing comments by rivals concerned over the impact of a sharp economic slowdown. The company, controlled by Russia's richest man Alisher Usmanov, expects revenue growth in a 6-8 percent range in 2014, it said in a statement, down from 9.1 percent in 2013 when it generated 297.2 billion roubles ($8.2 billion) in sales. Russia's largest mobile operator MTS  MBT.N  said earlier that sales would rise by 3-5 percent a year in 2014-2016, compared with a reduced target of around 5 percent in 2013, citing poor economic growth prospects, and rival Vimpelcom VIP.O  forecast flat revenues for the coming year. The "Big Three" operators, which together control more than 80 percent of the Russian mobile market, are under pressure to invest into next-generation mobile Internet networks as voice revenues have largely flattened out. Megafon plans to increase capital spending to 58-64 billion roubles this year from 47 billion roubles in 2013. It also said it aimed to maintain its core profit margin at at least 44 percent in 2014 after 44.6 percent last year. In the fourth quarter, Megafon's net profit fell 46 percent to 10.1 billion roubles ($280 million), missing a 12 billion rouble average forecast in a Reuters poll. The company said the fall was due to a one-off gain in the year-ago period, higher interest expenses and a revaluation of its foreign currency denominated debt. Quarterly revenues grew 11 percent to 79.7 billion roubles and operating income before depreciation and amortisation (OIBDA) fell 2.9 percent to 30.5 billion roubles, giving a 38.3 percent margin. Analysts had forecast 78.7 billion, 31 billion roubles and 39.4 percent respectively. ($1 = 36.1012 Russian roubles) (Reporting by Maria Kiselyova and Megan Davies, editing by Elizabeth Piper) (( 495 775 1242)(Reuters Messaging: Keywords: RUSSIA MEGAFON/RESULTS
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