Russia’s top mobile operator Mobile TeleSystems (MTS) saw second quarter 2011 net profit increase 2.6 percent year-on-year to $367 million to US GAAP, the company said in a statement on Tuesday.
Revenue grew 12.8 percent in April-June 2011 to $3.128 billion.
“During the quarter we have delivered healthy revenue growth on the back of the seasonally strong mobile business performance and growing contributions from our retail and fixed business. Total revenues in Russia, including mobile, fixed and handset and equipment sales, have increased year-on-year by 9 percent to 76.1 billion rubles,” MTS President and CEO Andrei Dubovskov was quoted in the statement as saying.
Operating Income Before Depreciation and Amortization rose 5.2 percent to $1.3 billion, while OBITDA margin amounted to 41.6 percent against 44.7 percent year-on-year.
Capital expenses in the second quarter of this year stood at $527.5 million. MTS forecasts annual volume of the expenses at 22-24 percent of revenue. The funds will be spent on fixed and 3G networks development.
Earnings Before Interest, Taxation, Depreciation, Amortization (EBITDA) from the Russian segment increased three percent to 32.5 billion rubles in April-June 2011, while EBITDA margin fell to 42.7 percent from 45.4 percent comparing with the same period in 2010.
Average revenue per user grew 4 percent to 265 rubles ($9.03), while minute-on-user ratio went up 17 percent to 269 minutes.
Dubovskov also said in a statement that MTS made an offer to its parent company AFK Sistema to acquire 29.05 percent of Moscow City Telephone Network (MGTS) for 10.56 billion rubles as the company plans to consolidate 100 percent of MGTS.
The deal may be closed in October-November 2011, while a full consolidation may be completed in two to three years.