Mobile TeleSystems Posts Q2 Profit - Quick Facts

(RTTNews) - Mobile TeleSystems OJSC (MBT) or MTS, the telecommunications provider in Russia and the CIS, reported that its second-quarter net income attributable to the Group was 29.05 billion rubles, compared to a loss of 23.14 billion rubles in the prior year quarter. Earnings per share for the quarter was 14.60 rubles, compared to a loss per share of 11.63 rubles last year.

Net income from continuing operations jumped to 25.62 billion rubles from the prior year's 10.68 billion rubles, with earnings from continuing operations per share improving to 12.75 rubles from 5.24 rubles in the year ago quarter.

Net operating revenue for the quarter grew to 97.45 billion rubles from last year's 92.78 billion rubles.

Andrei Dubovskov, President and CEO of MTS, said, "During the quarter group revenue increased 5% yearover- year. In Russia, revenues grew 4% year-on-year to 86.5 billion rubles. Mobile service revenues increased by 6% year-on-year to 66.2 billion rubles driven by data adoption and further monetization of data traffic. and messaging revenues. We continue to see market-leading growth in data traffic revenue, which grew 40% year-on-year. Our fixedline operations showed strong performance in spite of sustained competitive pressures, having increased by 4% year over- year to 14.4 billion rubles."

The company said its Board also recommended that the EGM approve semi-annual dividends of 5.22 rubles per ordinary share (10.44 rubles per ADR) amounting to the total of 10.8 billion rubles. If the recommendation is approved at the EGM, the company will pay out around 41.0 billion rubles in 2013 calendar year.

The company reiterated its revenue guidance of 5-7%.for 2013 -2015. The company raised its OIBDA margin guidance to over 43% for the year considering its strong organic performance in the first-half of the year, various one-off factors and continuation of the current stable competitive environments in its markets of operation. For the period 2013-2015 the company sees its OIBDA margin at about 42%.