MTS’ 1H RAS profits jump 160%

4 Aug 2006

Russia’s leading mobile operator Mobile TeleSystems (MTS), announced yesterday that its net income increased 160% year-on-year in the first half of 2006 to RUB14.1 billion (USD529 million), according to Russian Accounting Standards (RAS). MTS said a structural reorganisation, with some subsidiaries joining the parent company, had driven the profit increase. The mobile giant said that revenues in the second quarter rose 20%. Consolidated group subscribers reached 64.1 million at the end of June 2006, after it added 1.21 million new users in a month. The end-June total included 48.04 million users across Russia and 15.11 million at its Ukrainian arm, UMC.

Elsewhere, MTS sold its 50% stake in Kazan-based Telecom Service, it reported yesterday. Telecom Service provides telecom equipment repair services and supplies wireless telephones. Last month MTS acquired a 74.99% controlling stake in Dagtelecom, a GSM operator based in the south of Russia, from Glaxen Corp, a company registered in the British Virgin Islands, for USD14.7 million with an option to buy the remaining shares.

Russia, Mobile TeleSystems (MTS)