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.

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