Central and Eastern Europe mobile profitability concern
Central and Eastern Europe mobile profitability concern:
Central and Eastern Europe average margins per user (AMPUs) continue to fall rapidly. After a 10% decrease in 2Q05 to $12, local AMPU fell another 30% to $6 in 3Q05, according to Strategy Analytics. EBITDA margin, however, continue to grow, from 20% to 50%, driven by strong growth in subscriber base. The fall is mainly due to EBITDA not growing fast enough vs the subscriber growth.