MTS group revenues climb 7.4% in Q3

18 Nov 2015

Russian and CIS telecoms provider Mobile TeleSystems (MTS) has posted a 7.4% year-on-year rise in consolidated revenues to RUB115.034 billion (USD1.765 billion) in the third quarter ended 30 September 2015, driven by strong data service adoption across its domestic and CIS markets, although EBITDA fell 1.9% to RUB48.019 billion, operating profit (EBIT) dropped 18.4% to RUB27.319 billion and net income slid 6.6% to RUB14.393 billion. The profit decline was attributed to inflationary costs, reduced profitability in non-Russian businesses and the impact of the operator’s new commercial retail policies. Russia-only mobile service revenue climbed 1.0% to RUB77.967 billion in Q3 2015, while Russian sales of handsets/accessories jumped 58.8% to RUB12.615 billion, driven by smartphone adoption, which MTS said reached 47% of its Russian cellular user base by the end of September. Domestic fixed network revenue fell 4.6% to RUB15.076 billion, and Russian quarterly fixed/mobile EBITDA dropped 2.1% to RUB44.527 billion. MTS raised both its group-wide and Russian annual revenue growth forecasts to ‘more than 4%’.

Russia, Mobile TeleSystems (MTS)