(Telecompaper) Revenues of Russian and CIS operator MTS Group grew by 7.4 percent year-on-year in the third quarter to RUB 115 billion, led by demand for data services and smartphones. Adjusted OIBDA totaled RUB 48 billion, down by 2.4 percent, and the adjusted OIBDA margin was 41.7 percent. MTS said OIBDA was impact by cost inflation, margin pressure outside Russia and new commercial policies in its retail network. Net profit dropped by 6.4 percent to RUB 14.4 billion, hurt by forex losses. MTS raised its guidance for the full year and now expects annual revenue growth of around 4 percent, compared to a previous outlook for at least 2 percent growth. The company maintained its forecast for an OIBDA margin of over 40 percent and capital expenditure of around RUB 92 billion over the full year. In Russia, revenues grew by 4.7 percent to RUB 103.92 billion in the third quarter, while OIBDA declined 2.1 percent to RUB 44.53 billion amid higher costs for increased smartphone sales. Mobile revenues, including sales of devices, grew by 6.4 percent to RUB 90.6 billion, led by 20.2 percent growth in data revenues to RUB 20.6 billion. The subscriber base grew by 3.6 million compared to a year ago to 76.9 million at the end of September, while ARPU dropped by 4.6 percent to RUB 341.