MTS and MGTS push Sistema revenues up 50% y-o-y

9 Jun 2005

AFK Sistema, the largest private sector consumer services company in Russia and the CIS, has belatedly announced its full year 2004 financials, revealing a 52% leap in revenues on the back of strong growth in its telecoms businesses. Sistema’s telecoms operations comprise more than 50 companies covering all sectors of the communications market in Russia, including fixed and wireless, data, internet access and consulting services. Its main fixed line providers include Moscow City Telephone Network (MGTS), Telmos and Comstar Unified Telesystems, whilst the country’s largest cellco Mobile TeleSystems (MTS) is its flagship business.

For the twelve months ending 31 December 2004 Sistema reported revenues of USD5.71 billion, up from USD3.76 billion in 2003, and net income of USD411 million, up 6% year-on-year. Telecoms revenues grew 42% y-o-y to USD4.62 billion, more than 90% of which was generated by MTS and MGTS.