30 Oct 2009 16:19

Euroset more than doubles net profit in Q3 compared to Q2

MOSCOW. Oct 27 (Interfax) - Major Russian mobile phone retail chain Euroset boosted net profit in the third quarter to 1.19 billion rubles under International Financial Reporting Standards (IFRS), the company said in a statement.

Euroset posted a net loss of 0.99 billion rubles in the third quarter last year. It had a net profit of 0.56 billion rubles in the second quarter.

Consolidated third quarter revenue totaled 15.24 billion rubles, up from 11.72 billion rubles in the second quarter but down from 22.8 billion rubles in the third quarter of 2008.

EBITDA increased 250% to 1.64 billion rubles, up from 467 million rubles in the same quarter last year, and the EBITDA margin rose to 10.8% from 4%.

The company expects to post revenue of 60.57 billion rubles in 2009 on sales of 10.5 million handsets, according to preliminary forecasts. The number of retail locations will total 4,324 with market share at 36%.

Euroset is Russia's biggest retailer of mobile phones, digital cameras and other electronics. It has about 4,300 retail locations in Russia, Armenia, Belarus, Kazakhstan, Moldova and Ukraine.

Company founders Yevgeny Chichvarkin and Timur Artemyev sold their stakes in the fall of 2008 to Alexander Mamut, who soon after sold 49.9% of shares to Russian "big three" mobile operator VimpelCom for $226 million.

RTS$#&: TDEV, VIMP