MegaFon Predicts Recovering Profit Margin on Mobile-Data Growth
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OAO MegaFon, Russia’s second-largest wireless operator, predicted a rebound in profit margins this year after costs for faster networks weighed on earnings in the fourth quarter.
Operating income before depreciation and amortization will be at least 44 percent of sales this year, as revenue is set to expand as much as 8 percent, Moscow-based MegaFon said today. The Oibda margin slumped to 38.3 percent in the fourth quarter from 43.9 percent a year earlier.