Comstar net profit increases 63% in Q2

25 Aug 2010

Comstar-UTS, the fixed line unit of Russian mobile giant Mobile TeleSystems (MTS), has reported net profits of USD48.8 million for the three months ended 30 June 2010. This figure represents a 63.0% rise from the USD30 million reported in 2Q09. The company ha credited the increase in net profit to large gains in operating income. In operational terms, Comstar reported 3.607 million residential fixed line customers, an increase of 0.2% from 3.600 million one year earlier. Corporate fixed line subscribers decreased by 1.43%, from 70,000 to 69,000. Total broadband subscriber figures increased to 1.44 million in Q2, up 21.6% from 1.18 million year-on-year.

Sergey Pridantsev, President and CEO of Comstar-UTS, commented: ‘We have reported another quarter of consistent sales and profit growth, which has enabled us to deliver healthy financial results in line with our expectations, whilst sustaining the momentum of the implementation of our strategy. We have initiated the organic re-branding of our alternative segment, and launched the first convergent subscriber offerings in May, in line with Comstar’s integration into MTS. We accelerated the modernization of our networks in the regions during the quarter and, following the acquisitions of Multiregion by MTS and Penza Telecom by Comstar, the fixed line business of MTS Group is now present in over 110 regional cities, compared to 83 cities at the end of the first quarter.’

Russia, Comstar United TeleSystems (Comstar UTS)