Moscow, Russia (25 May 2017) — PJSC “MegaFon” ( “MegaFon” or the “Company” and, together with its consolidated subsidiaries, the “Group”) (LSE: MFON), a leading Russian provider of integrated digital services, announces its financial¹ and operating results for Q1 2017

Key financial and operating highlights of the Group

• Group revenue increased by 14.8% y-o-y² to RUB 86,254 million; Group pro-forma³ revenue increased by с. 1.4%
• Group OIBDA increased by 6.2% y-o-y to RUB 32,120 million
• Group OIBDA margin was 37.2% versus 40.2% in Q1 2016
• Group CAPEX decreased by 33.6% y-o-y to RUB 9,497 million
• Group Free Cash Flow to Shareholders⁴ increased by 55.8% y-o-y to RUB 8,267 million
• Group Net Debt as of 31 March 2017 was RUB 221,015 million
• The number of mobile subscribers as of 31 March 2017 grew by 1.2% y-o-y to 77.3 million

Download full press release in PDF

Operational and Financial Data Pack

Join audiocast

MegaFon will be hosting an analyst and investors conference call today with a simultaneous audiocast to discuss its Q1 2017 results during the Company’s Investor Day at the Mayfair Hotel, London at 08.30 (New York time), 13.30 (London time), 15.30 (Moscow time)

Dial-in details:

Local — Moscow, Russia:+7 495 2216523National free phone — Russian Federation:810 800 204-14011Local — London, United Kingdom:+44 20 30 43 2440National free phone — United Kingdom:08082381774National free phone — United States of America:+1 8778874163Access codes:96765954# for Russian 93072781# for English

Audiocast and slide presentation

Registration for the video-webcast as well as details of access to the live and on demand webcast from any iOS or Android mobile devices will be available today at 07.00 (New York time), 12.00 (London time), 14.00 (Moscow time) at: — MegaFon Investor Day 2017 English language or via the following QR-code:

For replay

Replay facilities will be available for 7 days: Local — Moscow, Russia+7 495 745 7948Local — London, United Kingdom:+44 20 33 67 9460Local — New York, United States of America:+1 877 642 3018Access codes:308988## for Russian 308910## for English

¹ Based on the interim unaudited condensed consolidated financial statements for Q1 2017 reviewed by JSC KPMG.

² Year over year (“y-o-y”) stands for the same periods in the current and previous year on either a quarterly or yearly basis.

³ Group pro-forma revenue is calculated on the basis that the Group consolidated the results of Mail.Ru starting from 1 January 2016.

⁴ Starting from the first quarter of 2017, pursuant to the adoption of its new dividend policy, the Group switched from reporting free cash flow, the financial measure previously used, to reporting free cash flow to shareholders.