MTS 2Q Net Profit Down 21.7% to RUB17.1 Billion
August 18 2015 - 08:29AM
Dow Jones News
By Olga Razumovskaya
MOSCOW--Russia's biggest telecom company OAO Mobile TeleSystems
said its net profit in the second quarter dropped 21.7% to 17.1
billion rubles ($261 million), hit by decreasing operating income
before depreciation and amortization, and foreign exchange losses
of approximately RUB3 billion.
The company warned Tuesday that unstable macroeconomic factors
in its chief operating countries, such as Russia and Ukraine, may
further impact the company's financial and operational
performance.
MTS's adjusted Oibda in the second quarter dropped 2.1% to
RUB42.7 billion, driven by double-digit inflation in Russia, the
devaluation of the hryvnia, expenses connected to MTS's relaunch of
its Uzbekistan business, as well as salary increases in Russia in
September 2014, the company said.
The company's second-quarter revenue increased, however, by 3.9%
to RUB102.7 billion.
MTS Chief Executive Andrei Dubovskov said that ruble and hruvnia
volatility will affect revenues and Oibda in Russia and
Ukraine.
The company increased its 2015 capital expenditure to around
RUB92 billion rubles from RUB85 billion, including investment in
its 3G business in Ukraine where MTS won licences to operate
earlier in the year, Mr. Dubovskov said.
The annexation of Crimea, as well as difficulties operating in
eastern Ukraine where conflict has reigned for over a year,
negatively affected Ukraine business, Mr. Dubovskov said.
Write to Olga Razumovskaya at olga.razumovskaya@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
August 18, 2015 08:14 ET (12:14 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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