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
That net balance was lower than 39% in June and the lowest since the Markit Global Business Outlook Survey began in 2009.
The project aimed to assist the country in improving financial management and efficiency of the government’s activity.
Australian PM Tony Abbott said leaders would discuss job creation, identifying tax cheats and strengthening the global economy.
This is the second in a series of three DPOs, supporting the government of Armenia in meeting its strategic objectives.
Partner news