MTS FY10 revenues rise 14.5% to USD11.3bn

6 Apr 2011

Russian telecoms giant Mobile TeleSystems (MTS) has announced revenues of USD11.3 billion for the twelve months ended 31 December 2010. This figure represents a rise of 14.5% from the USD9.9 billion reported in 2009. Of this figure, USD8.9 billion was generated by mobile services, a rise of 11.0% from USD8.0 billion in the corresponding period one year earlier. Meanwhile, the company’s fixed line unit was responsible for revenues of USD1.7 billion, up 12.8% from USD1.5 billion previously. Adjusted OIBDA increased 8.6% from USD4.5 billion to USD4.9 billion during FY10, whilst net operating income grew 7% from USD2.6 billion to USD2.7 billion. Net income for the twelve months ending 31 December 2010 grew 36.1%, to USD1.4 billion.

Andrei Dubovskov, CEO and president of MTS, commented: ‘2010 was a year of transition for MTS. With the completion of our statutory merger with Comstar last week, MTS has transformed itself from a simple mobile operator to a full-fledged telecommunications provider, offering mobile, fixed, internet and content products and services. Obviously MTS has changed, and our financial performance is reflective of this. However, the change has allowed us to create a platform that will usher in a new era for MTS. To date we have been focused on an acquisition model of business. This has served us with the growth of subscribers and the changes in distribution over the years. Having now established ourselves in both the fixed line space and retail, we can now begin to focus on retention and loyalty as key operational goals of our business. Overall, in terms of revenue we see about 10% growth for 2011. We aim to push more tariffs that promote on-net traffic and better monetise off-net calling. Network enhancement will drive more profitable data usage through our networks. In addition, our ability to launch true convergent products, eliminating redundancy at both MTS and Comstar, will further drive usage and support our churn reduction efforts’.

Russia, Mobile TeleSystems (MTS)