By Olga Razumovskaya
MOSCOW--Russia's largest mobile telecommunications company
Mobile TeleSystems (MBT) reported incremental net profit growth in
the third quarter and warned that the days of double-digit growth
might be over due to the dire macroeconomic situation.
MTS said its third-quarter net profit was up 3% on the year at
18.1 billion rubles ($554 million) thanks to growth in
data-providing services. In the same quarter a year ago, the
company reported a 74% jump in net profit.
Andrei Dubovskov, MTS chief executive, said at a presentation of
the financial results that a certain slowing on the market is
becoming obvious due to unfavorable macro conditions on MTS's main
markets, Russia and its ex-Soviet neighbors.
Mr. Dubovskov said he sees single-digit revenue growth in 2014,
given Russia's current economic situation.
The economy ministry has lowered its 2013 gross domestic product
growth forecast several times due to sluggish external demand for
Russian exports along with weak domestic activity. Now it sees 2013
growth at around 1.5% compared to a previous call for 3.6%
growth.
Multiple downward revisions of Russia's GDP forecasts together
with minimal industrial output growth cannot help but have an
adverse effect on revenues, Mr. Dubovskov said.
MTS said its third-quarter revenue was 4% higher at RUB103
billion from RUB99.4 billion a year earlier. TOperating income
before depreciation and amortization, or Oibda, rose 5% to RUB46
billion from RUB44.3 billion a year earlier.
The company also said its third-quarter net profit, taking into
account one-offs from currency fluctuations and compensation from
the dispute around Kyrgyz operator Bitel, was down 14% on the
year.
Write to Olga Razumovskaya at olga.razumovskaya@wsj.com
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