MTS sees 72% jump in profits

5 Sep 2007

Russia’s largest cellular operator by subscribers, Mobile TeleSystems (MTS), has reported a net profit of USD507.9 million in the second quarter, up 72% year-on-year thanks largely to increased traffic. Sales for the three months to the end of June were up 32% to USD1.97 billion on the back of increased average revenue per user (ARPU). In MTS’ domestic market ARPU rose from USD7.50 a month in 2Q 2006 to USD9.20 a month in the latest quarter, with total customer numbers across its operations in Russia, Belarus, Turkmenistan, Ukraine and Uzbekistan reaching 74.67 million at the end of June.

MTS’ CEO, Leonid Melamed, commented: ‘A significant growth of revenues and net profit is evidence of the success of our efforts to stimulate traffic in the company’s main markets.’ He added: ‘We continue to roll out networks in the markets with low penetration, which allows us to raise their contribution into the company’s overall sales.’

Russia, Mobile TeleSystems (MTS)