MEGAFON Annual Report 2016
BRINGING THE FUTURE CLOSER

Consolidated Income Statement

(In millions of Rubles, except per share amounts)

    Years ended 31 December
  Note 2016 2015
Revenue 2.1 316,275 313,383
Operating expenses      
Cost of revenue   95,157 84,410
Sales and marketing expenses 2.2 19,254 18,122
General and administrative expenses 2.3 80,725 78,494
Depreciation 3.1, 3.8 51,925 48,173
Amortisation 3.2 7,881 7,313
Goodwill impairment 3.2.3 3,400 —
Loss on disposal of non-current assets   849 913
Total operating expenses   259,191 237,425
Operating profit   57,084 75,958
Finance costs   (19,094) (14,779)
Finance income   1,810 2,508
Share of loss of associates and joint ventures 3.3 (2,651) (649)
Other non-operating loss 5.2 (2,906) (2,949)
(Loss)/gain on financial instruments, net 3.4.3 (235) 1,502
Foreign exchange gain/(loss), net   1,822 (10,041)
Profit before tax   35,830 51,550
Income tax expense 2.4 10,241 12,334
Profit for the year   25,589 39,216
Profit for the year      
Attributable to equity holders of the Company   25,496  39,041  
Attributable to non-controlling interest   93 175
    25,589 39,216
Earnings per share, Rubles      
Basic and diluted, profit for the year attributable
to equity holders of the Company
2.5 43 66