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MTS profits boosted by Kyrgyzstan settlement
2013-08-20 15:38:00| Telecompaper Headlines
(Telecompaper) Russia and CIS mobile oeprator MTS reported second-quarter revenues up 5 percent from a year earlier to RUB 97 billion. OIBDA improved 10 percent to RUB 44 billion, increasing the margin 1.9 percent points year-on-year to 45.5 percent. The company recorded net profit of RUB 29 billion versus a loss of RUB 23 billion a year ago, helped by a one-time gain on the settlement of its dispute in Kyrgyzstan with Altimo and Beeline. Capex reached RUB 26 billion in the first six months of the year, equal to 13.7 percent of revenues, and free cash flow was up 34 percent to RUB 45 billion in H1. MTS maintained its full-year outlook for revenue growth of 5-7 percent, based on increased adoption of data services, as well as sustained sales of smartphones and a stable subscriber base. It raised the OIBDA margin outlook to over 43 percent, from 41-42 percent previously, thanks to solid organic growth in H1 and the one-off gain. Over the period 2013-15, the margin is expected at around 42 percent. Capex is expected to accelerate in the second half on roll-out of the LTE network and GPON in Moscow, reaching around RUB 80 billion or 20 percent of revenues for the full year.
Tags: settlement
profits
kyrgyzstan
mts
Category:Telecommunications