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MTS cuts sales growth outlook on Ukraine weakness
2014-08-20 14:56:00| Telecompaper Headlines
(Telecompaper) Russian mobile operator MTS reported second-quarter revenues up 1.4 percent year-on-year to RUB 98.9 billion, as strength in its home market offset the difficult market conditions in Ukraine. OIBDA fell 2.6 percent to RUB 43.2 billion, after a one-time gain last year for the settlement with Vimpelcom over control of the Kyrgyzstan mobile operator Bitel. Without the one-time gain, OIBDA declined by 0.6 percent, due to the difficulties in Ukraine and costs for mobile and fixed network expansion in Russia. Net profit totaled RUB 21.1 billion, down 27.4 percent from a year earlier when it booked a one-time accounting gain. Excluding the Bitel settlement, operating free cash flow increased 12.0 percent to RUB 46.0 billion. The macroeconomic weakness and uncertain political environment in Ukraine led the company to lower its revenue growth outlook for 2014 to 1 percent. Russia is still expected to grow at the high end of its initial guidance of 3-5 percent, after a revenue increase of 4.5 percent in Q2. Group OIBDA is forecast stable year-over-year, and MTS maintained its capex budget at RUB 90 billion over the full year.
Tags: sales
growth
ukraine
outlook
Category:Telecommunications