Russia's MTS posts $681.8 million Q2 net loss

Russia's MTS posts $681.8 million Q2 net loss

PanARMENIAN.Net - Russia's biggest mobile phone operator MTS posted a $681.8 million second-quarter net loss to US GAAP, after writing-off $1.1 billion due to the suspension of its subsidiary's license in Uzbekistan, the company said on Tuesday, Aug 28.

New York-listed MTS, controlled by Vladimir Yevtushenkov’s AFK Sistema conglomerate, had its Uzbekistan subsidiary's license suspended in July, which a local court revoked permanently on August 13. The company says it is fighting to save the Uzbek business.

Excluding that write-off, MTS said it made a net profit of $357 million, up from a $367 million loss in the second quarter of 2011.

Revenues for the second quarter were down 0.2 percent to $3.12 billion against a $3.08 billion forecast, reflecting the negative impact of ruble depreciation, MTS said.

OIBDA rose 5.4 percent to $1.37 billion, with a 44 percent margin, lower than analysts' average estimates of $1.32 billion and 42.8 percent respectively, RIA Novosti reported.

 Top stories
Around 10.6% will be spent on economy, 7.2% will be used to repay Armenia's debts, 3.5% will go the communities as budget subsidies.
Samvel Karapetyan’s company confirmed the purchase of the Electric Networks of Armenia and Hrazdan thermal power plant.
“Power generating companies had been affected by the financial deficit in the Electric Networks of Armenia,” the company said.
Partner news