MTS 1Q15 revenues increase 2.7%; FOREX woes pummel bottom line

21 May 2015

Russian wireless giant Mobile TeleSystems (MTS) has reported consolidated group revenues of RUB100.182 billion (USD2.01 billion) for the three months ended 31 March 2015, up 2.7% from RUB97.546 billion one year earlier. Improved domestic revenues helped to spearhead growth, increasing 3.6% year-on-year, from RUB87.252 billion to RUB90.423 billion. Adjusted OIBDA dropped 2.0% from RUB42.154 billion to RUB41.309 billion on an annualised basis, while adjusted operating income slumped 13.3% from RUB24.051 billion to RUB20.861 billion. Net income plummeted 22.3% to RUB9.989 billion in the first quarter, with the company blaming ‘sustained macroeconomic volatility’, which included a RUB3.5 billion FOREX loss relating to the depreciation of the Russian rouble (RUB).

Andrei Dubovskov, MTS president and CEO, commented: ‘For the period, MTS again demonstrated strong operational trends in our core markets … Growth was primarily driven by increases in voice usage and data adoption. Despite the volatile and generally negative macroeconomic environment, we maintained strong profitability with a Group Adjusted OIBDA margin coming in at 41.2%. In Russia, we continue to benefit from growing smartphone penetration and increased data usage in all customer segments while overall demand for our services remains resilient.’

Russia, Mobile TeleSystems (MTS)