MTS profit in decline

16 Nov 2009

Russian mobile operator Mobile TeleSystems (MTS) has reported a 4.1% year-on-year drop in third quarter net profit, down from USD515.6 million in Q308, to USD494.6 million a year later. Revenues for the three months ended 30 September 2009 came to USD2.27 billion, down from USD2.8 billion a year earlier, but representing a growth of 12% from the USD2.02 billion reported in the second quarter of 2009. Operating income before depreciation and amortisation (OIBDA) took a similar course, up 11% from USD953 million in Q209, to USD1.06 billion three months later, but down 27% year-on-year. As of 30 September 2009, MTS’s total debt stood at USD7.2 billion, with net debt at USD3 billion, the company expects debt to rise further in 2010-2012 if bondholders demand up to USD821 million in early repayments. Capital expenditure totalled USD361.5 million for the three months ended 30 September 2009, and the company expects to increase capital expenditures to between 22% and 25% of sales in 2010 in order to finance the 3G network rollout and continue investing in its retail business. The company ended the quarter with 101.38 million mobile subscribers, up from 91.73 million a year earlier.

Russia, Mobile TeleSystems (MTS)