MTS posts 2Q 2009 Net Income of $563 million

MTS posts 2Q 2009 Net Income of $563 million
Russian mobile operator, Mobile TeleSystems (MTS), has posted a 2Q 2009 net income of $563 million under U.S. GAAP.

The bottom line is down 14.6% year on year from the $659.2 million Net Income posted for 2Q 2008, with OIBDA falling 29.3% year on year to $953.8 million, on the back of Revenues of $2.02 billion, down 23.3% year on year.

However, quarter on quarter the Net Result was up from a $57.7 million Net Loss in 1Q 2009, with OIBDA up 14.7% and Revenues up11.8%.

The company attributed the better than expected result to an increase in subscriber numbers, seasonal usage factors and a firming Russian rouble. MTS expects continued macroeconomic instability but CEO, Mikhail Shamolin, was upbeat about the net result.

"The Company demonstrated sound results during the quarter on the back of seasonal and organic growth. Despite continuing macroeconomic volatility in Russia and the CIS, strong subscriber additions, a seasonal increase in usage and on-going cost saving initiatives facilitated quarter-on-quarter revenue growth and higher operating margins.”