MTS boosts revenue on Russia mobile demand as rivals’ sales drop
By Bloomberg
Russia’s OAO Mobile TeleSystems increased revenue in the first quarter on demand for mobile Internet access, the only wireless carrier to do so in a country whose economy contracted and consumer incomes fell.
Sales rose 2.7 percent to 100 billion rubles ($2 billion), the company said in a statement Tuesday. Analysts predicted 99.6 billion rubles. Adjusted operating income before depreciation and amortization, as a percentage of sales, narrowed to 41.2 percent from 43.2 percent a year earlier.
MTS’s data revenue in Russia jumped 26 percent on demand for subscriptions that let customers browse the Web and send e- mail on mobile devices. Still, profitability at Russian carriers is shrinking as competition weighs on prices and the cost of network equipment has risen amid the ruble’s decline.
MTS, controlled by billionaire Vladimir Evtushenkov, posted a 4 percent increase in Russian wireless revenue in the quarter. Russian wireless sales at billionaire Alisher Usmanov’s PJSC MegaFon and billionaire Mikhail Fridman’s VimpelCom Ltd. fell during the period.
Net income at MTS dropped 14 percent to 10.9 billion rubles, hurt by declines by the Russian and Ukrainian currencies.
The company reiterated its full-year forecast for sales growth of more than 2 percent and an Oibda margin of at least 40 percent.
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