Mobile TeleSystems Announces Financial Results for the Second Quarter Ended June 30, 2009
MOSCOW, -- Mobile TeleSystems OJSC ("MTS" - NYSE: MBT), today announces its consolidated US GAAP financial results for the three months ended June 30, 2009.
Key Financial Highlights of Q2 2009
- Consolidated revenues up 11.8% q-o-q to $2,022.4 million
driven by additional subscribers, rising voice and data consumption,
seasonal usage factors and currency appreciation
- Consolidated OIBDA[1] up 14.7% q-o-q to $953.8 million with
47.2% OIBDA margin driven by revenue growth, currency improvements and
optimized period spending
- Consolidated net income of $563.0 million due to revenue
growth and non-cash FOREX gain through US GAAP translation of US
dollar-denominated debt
Key Corporate and Industry Highlights
- Launch of 3G in Armenia and limited launch in Moscow
- Signing of a partnership agreement with Nokia
- Securing of three loans for the total amount of EUR 413
million for network development
- Approval of recommended dividend payment for FY 2008 of RUB
39.40 billion ($1.16 billion) or RUB 20.15 per ordinary share ($2.96
per ADR) that comes to 60% of US GAAP net income
- Appointment of Mr. Ron Sommer as the Chairman and Mr. Alexey
Buyanov as the Deputy Chairman of the MTS Board of Directors
- Placement of new syndicated loan facility to restructure
$630 million loan due in Q2 2009
- Placement of two ruble-denominated bonds worth RUB 15
billion each in May and July 2009
- The Boards of Directors of MTS and Sistema approve the
acquisition of Sistema's 50.91% stake in Comstar-UTS for $1.272
billion[2], of $5.98 per GDR, by a subsidiary of MTS
Additional Developments
- MTS continues to see sustained macroeconomic volatility in
its markets of operations that may impact the financial and operational
performance throughout the Group.
Commentary
Mr. Mikhail Shamolin, President and CEO of MTS, commented: "The Company demonstrated sound results during the quarter on the back of seasonal and organic growth. Despite continuing macroeconomic volatility in Russia and the CIS, strong subscriber additions, a seasonal increase in usage and on-going cost saving initiatives facilitated quarter-on-quarter revenue growth and higher operating margins. As our markets are changing, we are adapting our strategic priorities to meet new challenges and seize opportunities by developing our monobrand retail channel and entering the broadband market to deliver wider Internet access, integrated communications services and innovative solutions to our customers."
For further operational information and full consolidated unaudited financial statements, please visit http://www.mtsgsm.com/news/reports/
Mobile TeleSystems OJSC ("MTS") is the largest mobile phone operator in Russia and the CIS. Together with its subsidiaries, the Company services over 95.03 million subscribers. The regions of Russia, as well as Armenia, Belarus, Turkmenistan, Ukraine, and Uzbekistan, in which MTS and its associates and subsidiaries are licensed to provide GSM services, have a total population of more than 230 million. Since June 2000, MTS' Level 3 ADRs have been listed on the New York Stock Exchange (ticker symbol MBT). Additional information about MTS can be found on MTS' website at http://www.mtsgsm.com.
Key Financial Highlights of Q2 2009
- Consolidated revenues up 11.8% q-o-q to $2,022.4 million
driven by additional subscribers, rising voice and data consumption,
seasonal usage factors and currency appreciation
- Consolidated OIBDA[1] up 14.7% q-o-q to $953.8 million with
47.2% OIBDA margin driven by revenue growth, currency improvements and
optimized period spending
- Consolidated net income of $563.0 million due to revenue
growth and non-cash FOREX gain through US GAAP translation of US
dollar-denominated debt
Key Corporate and Industry Highlights
- Launch of 3G in Armenia and limited launch in Moscow
- Signing of a partnership agreement with Nokia
- Securing of three loans for the total amount of EUR 413
million for network development
- Approval of recommended dividend payment for FY 2008 of RUB
39.40 billion ($1.16 billion) or RUB 20.15 per ordinary share ($2.96
per ADR) that comes to 60% of US GAAP net income
- Appointment of Mr. Ron Sommer as the Chairman and Mr. Alexey
Buyanov as the Deputy Chairman of the MTS Board of Directors
- Placement of new syndicated loan facility to restructure
$630 million loan due in Q2 2009
- Placement of two ruble-denominated bonds worth RUB 15
billion each in May and July 2009
- The Boards of Directors of MTS and Sistema approve the
acquisition of Sistema's 50.91% stake in Comstar-UTS for $1.272
billion[2], of $5.98 per GDR, by a subsidiary of MTS
Additional Developments
- MTS continues to see sustained macroeconomic volatility in
its markets of operations that may impact the financial and operational
performance throughout the Group.
Commentary
Mr. Mikhail Shamolin, President and CEO of MTS, commented: "The Company demonstrated sound results during the quarter on the back of seasonal and organic growth. Despite continuing macroeconomic volatility in Russia and the CIS, strong subscriber additions, a seasonal increase in usage and on-going cost saving initiatives facilitated quarter-on-quarter revenue growth and higher operating margins. As our markets are changing, we are adapting our strategic priorities to meet new challenges and seize opportunities by developing our monobrand retail channel and entering the broadband market to deliver wider Internet access, integrated communications services and innovative solutions to our customers."
For further operational information and full consolidated unaudited financial statements, please visit http://www.mtsgsm.com/news/reports/
Mobile TeleSystems OJSC ("MTS") is the largest mobile phone operator in Russia and the CIS. Together with its subsidiaries, the Company services over 95.03 million subscribers. The regions of Russia, as well as Armenia, Belarus, Turkmenistan, Ukraine, and Uzbekistan, in which MTS and its associates and subsidiaries are licensed to provide GSM services, have a total population of more than 230 million. Since June 2000, MTS' Level 3 ADRs have been listed on the New York Stock Exchange (ticker symbol MBT). Additional information about MTS can be found on MTS' website at http://www.mtsgsm.com.
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