MTS: 2012 revenues edge up less than 1% despite growth in key markets

20 Mar 2013

Russian giant Mobile TeleSystems (MTS) has posted revenues of USD12.44 billion for the year ending 31 December 2012, up just 0.9% year-on-year. The growth was thanks to increased sales from its operating subsidiaries in Russia (up 2.2% to USD10.87 billion) and Ukraine (up 6.0% to USD1.21 billion). However, revenues in Uzbekistan plummeted 37.8% (to USD274.5 million) following the suspension of MTS Uzbekistan’s operating licence and the firm’s subsequent bankruptcy. Adjusted OIBDA for the year increased 3.0% to USD5.30 billion, while net income slumped 30.2% from USD1.44 billion to USD1.01 billion. In operational terms, at 31 December 2012 MTS claimed 101.02 million consolidated mobile subscribers, up 1.9% year-on-year, as well as more than 2.31 million consolidated broadband subscribers.

Alexey Kornya, MTS vice president and chief financial officer, added: ‘CAPEX for the year came in line with our guidance at USD2.9 billion, or roughly 23% of sales. In 2012, we continued [the] build-out of our 3G networks, which has reached 28,000 base stations with over 90% sites connected via IP channels. We invested in backbone and backhaul rollout in the regions as well as in our GPON project in Moscow, bringing the total length of our fibre-optic networks up to over 140,000km’.

Russia, Mobile TeleSystems (MTS)