MTS 3Q11 revenues up 12.5%

22 Nov 2011

Moscow-based telecoms giant Mobile TeleSystems (MTS) has reported revenues of USD3.275 billion for the three months ended 30 September 2011, a rise of 12.5% year-on-year. OIBDA for Q3 increased 9.3% to USD1.3 billion year-on-year, whilst net income for the quarter slumped 25.2% from USD483.5 million to USD361.8 million. The group’s domestic unit contributed the lion’s share of 3Q11 sales, reporting revenues of RUB81.738 billion (USD2.631 billion) for July-September 2011, an increase of 10.8% y-o-y. Meanwhile MTS Ukraine saw revenues rise 8.4% y-o-y to UAH2.498 billion (USD307 million) in Q3 2011, while MTS Uzbekistan recorded sales of USD112.8 million, down 1.8%. Elsewhere, the group’s Armenian unit VivaCell-MTS also reported a fall in quarterly revenues, to AMD20.746 billion (USD54.0 million), down 0.8% compared to the year-ago period.

Andrei Dubovskov, president and CEO of MTS, commented: ‘MTS continues to deliver on its goals. We delivered strong top-line growth through sensible tariffs, higher handset sales and seasonal factors. We have improved the business’s core profitability by significantly reducing commercial expenses by exerting strong control over our distribution channels and moving from fixed-fee to revenue-based dealer commission structures. We have realised incremental savings in other areas of the business through our restructuring and continuous cost optimisation. Overall, we believe that our core markets in Russia, Ukraine and the CIS remain very attractive markets. We are only in the beginning of data growth in both fixed and mobile businesses, with penetration and usage rising every period. We are actively engaged with our regulators, and we have a clear technological road map for our future development’.