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.’