In 2016, the Russian telecommunications market remained highly competitive, with continued changes in consumer demand. This put pressure on the industry in general, and on MegaFon’s performance in particular, as we are one of the key players in the market. Despite these external challenges, we delivered 2016 results in line with our previous guidance on key metrics.
(1) All figures disclosed under operating highlights refer to our Russian operations.
Some of the operating KPIs presented here vary from those reported earlier due to the change in methodology for counting data service users. A data service user is defined
as a subscriber who has consumed any amount of data traffic within the preceding month.
(2) Data for 2015 and further are calculated in accordance with the new methodology to calculate number of logic base stations that function in various frequency spectrum
bands. Number of base stations for 2014 was calculated based on the previous methodology.
(3) Adjusted OIBDA is shown for 2016. Adjusted OIBDA is OIBDA net of impairment charge in the amount of RUB 3.4 billion related to the goodwill allocated to the Broadband
Internet cash generating unit.
