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Belarusian cell phone operator incomes have grown in the 3d quarter

Author: Mikhail Doroshevich


Each one of the three largest Belarusian cell phone operators links this to the increase of the number of Internet users and development of communications technologies.

Income mostly grows because of the increase of the average revenue per user (ARPU). Velcom experiences the fastest ARPU growth: while in the third quarter of 2011 the company made 3.5 from every user, in July-September of the current year it made 4. MTS average revenue per user increased as well from $5.27 to $5.7. After cleaning the userbase, financial situation of the young life:) operator improved as well, BELTA announces.

Third quarter turned out to be more successful for the Velcom operator judging by other indicators as well: Velcoms revenue increased by 42.5% (to 81 million), while BeSTs revenue grew by 29% (to $17.5 million), and MTS experienced increase of revenue by 12.7% (to $95.7 million).

EBITDA indicator (income before paying profits tax, interest and depreciation) for July-September increased by 41.4% (to 34.3 million) for Velcom. At the same time, EBIT (income before paying profits tax and interest) decreased by 34.3% (to 10.3 million), which can be linked to increase in depreciation deductions and asset revaluation.

For the life:) operator EBITDA indicator became positive for the first time - $28 thousand, while in the same period last year it was -$1.9 million. For MTS, OIBDA indicator (income prior to fixed asset depreciation deduction and amortization of intangible assets) grew by 11% (to $48.5 million).

By the end of September, structure of the cellphone communications market changed: life:), losing 800 thousands users at the beginning of the year, let his competition strengthen their positions. MTS currently holds 47% of the market, Velcom holds 44%, and life:) only holds 9%. At the same time, mobile penetration in Belarus decreased from 116% to 114%.

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