MTS FY14 revenues up 3.1% to RUB410.8bn; net income slumps 35.1% due to FOREX shifts

18 Mar 2015

Russian communications giant Mobile TeleSystems (MTS) posted revenues of RUB410.76 billion (USD6.65 billion) for the year ended 31 December 2014, up 3.1% year-on-year. Of the total, RUB374.89 billion was generated by the group’s domestic unit. Adjusted OIBDA increased 0.3% y-o-y to RUB175.46 million, while net income attributable to the group slumped 35.1% to RUB51.82 billion on the back of severe FOREX shifts which led to the significant depreciation of the Russian ruble (RUB).

In operational terms, at 31 December 2014 MTS claimed a consolidated mobile user base of 104.0 million, down from 107.8 million on an annualised basis. Of this figure, Russia accounted for the lion’s share (74.6 million), ahead of Ukraine (20.2 million), Belarus (5.3 million), Armenia (2.2 million) and Turkmenistan (1.7 million).

Andrei Dubovskov, MTS president and CEO, commented: ‘Obviously, macroeconomic issues and currency stability remain the key factors, which may influence our revenue and margins. Our plans for CAPEX in 2015 are to decrease slightly in the absolute amount of capital expenditures to roughly RUB85 billion. Ruble volatility does imply that we will purchase less equipment, but we are best prepared for such a scenario. In 2014 we launched and developed LTE in 76 regions and installed over 15,000 3G/4G base stations, a record for MTS.’

Russia, Mobile TeleSystems (MTS)