MTS announces 10.8% revenue increase for 3Q10

19 Nov 2010

Russian-based telecoms giant Mobile TeleSystems (MTS) has announced revenues of USD2.91 billion for the three months ended 30 September 2010. This figure represents a rise of 10.8% from the USD2.63 billion reported in the same period one year earlier. Of this figure, USD2.32 billion was generated by mobile services, up 8.5% on USD2.14 billion in 3Q09, whilst the company’s fixed line unit was responsible for revenues of USD423.6 million, up 12.3% from USD377.2 million one year earlier. Although OIBDA increased 8.2% to USD1.3 billion year-on-year, net income for the quarter slumped 5.7% from USD504.1 million to USD475.5 million during the same period.

The Group’s domestic unit reported revenues of RUB73.75 billion (USD2.37 billion) for the three months from June to September 2010, an increase of 9.2% from RUB67.56 billion one year earlier. MTS Ukraine saw revenues rise 4% year-on-year from UAH2.22 billion (USD70.65 million) to UAH2.30 billion in Q3 2010, while MTS Uzbekistan recorded sales of USD114.9 million, up 13.6%. Meanwhile, MTS Turkmenistan saw the strongest revenue growth – at 29.7% – rising from TMT122.8 million (USD43.1 million) to TMT159.3 million. Only the group’s Armenian unit VivaCell-MTS reported a fall in revenues year-on-year, to AMD20.9 billion (USD57.96 million), down 4.8% from AMD21.97 billion one year earlier.

Mikhail Shamolin, president and CEO of MTS, commented: ‘For the period, we delivered strong sequential and annual growth in all of our markets of operation. During the quarter we improved Group revenues 10.8% year over year to USD2.9 billion. We attribute this growth to the positive seasonal dynamics, subscriber additions and a general increase in usage in our core markets’.

Russia, Mobile TeleSystems (MTS)