Russia's Megafon lifts profit guidance as data grows

* Raises 2013 core margin outlook to 44 pct

* Third-quarter margin rises to 45.6 pct

* Net (Berlin: NETK.BE - news) profit up 3 percent, in line with forecasts

By Maria Kiselyova

MOSCOW, Nov 13 (Reuters) - Russia's second-biggest mobile phone operator, Megafon (MCX: MFON.ME - news) , lifted its full-year profitability guidance on Wednesday as it benefited from growing mobile internet use.

Megafon's shares have risen 77 percent since its initial public offering a year ago, as it delivered on commitments to become a leader in next-generation mobile technology, cut costs and return profits to shareholders.

"We placed our bet on the growth of the mobile data market several years ago and focused on increasing revenue in this segment," said Mikhail Dubin, executive director for consumer business. He said the results confirm Megafon's strategy.

The Russia-focused company, controlled by billionaire Alisher Usmanov, has outperformed domestic rivals Vimpelcom and MTS, which have struggled after diversifying abroad or being slow to invest.

Last year, Megafon also took the lead in the race to provide high-speed wireless internet, aimed at smartphones, laptops and tablet PCs, by teaming up with Russia's only 4G operator Scartel, which it later bought for $1.2 billion.

Megafon already provides 4G services in 31 Russian regions, covering around 43 million people, while mobile market leader MTS provides 4G access to 15 million people.

An increasing share of high-margin data revenue contributed to a 10.5 percent year-on-year increase in third-quarter operating income before depreciation and amortisation (OIBDA) to 35.4 billion roubles ($1.08 billion) or 45.6 percent of revenues against 45 percent a year ago, the company said.

For the full-year 2013 it now expects an OIBDA margin of 44 percent, at the top of a previously guided 42.5-44 percent range, it said in a statement.

The forecast implies a decline in profitability in the fourth quarter due to higher commercial costs ahead of the 2014 Winter Olympic Games and consolidation of Scartel, chief financial officer Gevork Vermishyan told a conference call.

Mobile data (Other OTC: MBYL - news) revenue soared 24 percent year on year to 13 billion roubles, helped by increases in the number of smartphones, other mobile internet devices and subscribers and outperforming a 9 percent rise in total revenue to 77.5 billion roubles.

Megafon also reported a net profit of 15.3 billion roubles, matching the average forecast for a 3 percent year-on-year rise in a Reuters poll of analysts.

Megafon's Moscow-traded shares have risen 60 percent in the year to date. In London, the stock is up about 77 percent since its initial public offering which raised $1.7 billion in November last year.

Usmanov owns just over 50 percent of Megafon. Nordic (SES: MR7.SI - news) telecom operator Teliasonera (Berlin: TLS.BE - news) is the second-biggest shareholder with a 25.2 percent stake.