"MegaFon" began to invest in the "law of Yarovoi"

The company increased capital expenditures. They will then be shifted to the consumers' shoulders.
Free cash flow of "MegaFon" decreased in the first quarter by 4.1 billion rubles. year to year. During this period, the company reduced its credit debts and began investing in equipment necessary to implement the "law of Yarovoi." At the same time, the operator does not plan to return to paying dividends.

In the first quarter of 2018, free cash flow for shareholders of the telecom-segment "MegaFon" decreased by 4.1 billion rubles. compared with the same period last year, reaching a net cash outflow of 153 million rubles., follows from the statements of the operator.

The decrease in the company's performance is explained by calculations of accounts payable, payment of deferred payments to suppliers of goods, as well as payment of an annual bonus to employees.

The free cash flow for the shareholders of the group also decreased - by 5.8 billion rubles. compared with the same period last year: it amounted to 2.4 billion rubles. in the first quarter of this year. The indicator of capital expenditures of the company in the first quarter increased by 4.2% and amounted to 8.4 billion rubles. During this period, the company continued to deploy LTE networks and invested in data storage equipment under the "Yarovoi law", the report says.

The operator has not yet planned to return to the payment of interim dividends, the executive director of MegaFon Gevorg Vermishchyan said at a meeting with journalists. The decision of the board of directors not to pay dividends in 2018, "MegaFon" reported in March. The company explained the refusal to pay the shareholders to invest in the implementation of the "law of Yarovoi", which will require 35-40 billion rubles. for five years.

In the first quarter of 2018, consolidated revenue of MegaFon increased by 2.6% compared to the same period last year and reached 76.4 billion rubles. Net income increased by 57.2% compared to the previous year and amounted to 6 billion rubles. The OIBDA increased by 5.3% compared to the same period last year, to 30.5 billion rubles.