MTS posts 14.6% drop in net income

12 Aug 2009

Russia-based mobile group Mobile TeleSystems (MTS) has reported a 14.6% year-on-year decline in consolidated group net income for the second quarter of 2009, down to USD563 million from USD659.2 million a year earlier. The result, however, is an improvement on the net loss of USD57.7 million reported in the first quarter of 2009, which was attributed to foreign currency fluctuations. Revenues for the quarter ended 30 June 2009 were down 23.3%, from USD2.64 billion in Q208 to USD2.02 billion a year later. The Group added approximately 2.8 million net new customers during the second quarter of 2009, ending June with 99.5 million subscribers in total.

It has been well publicised that MTS is looking to expand its operations in the second half of 2009, having agreed a price with Sistema for its stake in Russian fixed line operator Comstar and having been linked to Kazakhstan-based cellco Mobile Telecom-Service. In June Mikhail Shamolin, CEO of MTS, said: ‘There are two countries where we are not present yet and I believe we should be present, which are Kazakhstan and Azerbaijan.’