MTS blog


DATE FOR Q4 AND FY 2009 FINANCIAL RESULTS

вторник, января 19, 2010
We have set the tentative date for our Q4 and FY 2009 financial results on April 1, 2010. We will confirm the date closer to the event.

You can view the latest information on our upcoming events here.

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ISO 9001:2008 CERTIFICATE OF CONFORMITY

четверг, декабря 03, 2009

Earlier this week MTS became the only Russian telecommunications company to obtain the ISO 9001:2008 certificate of conformity for its Quality Management System that covers all of our locations in Russia, Ukraine and Uzbekistan. The certification audit was conducted by SGS, the global leader in inspection, verification, testing and certification services.

“Implementing the certification audit of the MTS Group allowed us to make sure that the Company’s activities and its internal quality management processes comply with the highest international standards. Obtaining the certificate of conformity helps to strengthen the Company’s reputation as an operator with a high service quality. I am convinced that getting the ISO certificate will bring MTS even more trust on behalf of its clients, investors and partners as well as will boost its further effective and successful business development,” said Peter Marriott, Vice-President of SGS S.A.

“The certification audit confirms the high level of service standards and the effectiveness of the process management system maintained by MTS throughout its markets of operation. The certification provides an additional incentive for our Company to further standardize requirements and approaches towards quality management in order to create better conditions for managing the processes of the integrated management system in the framework of the MTS Group,” noted Mikhail Shamolin, President and CEO of MTS.

In the future, along with the annual surveillance audits we intend to extend the geographical scope of the certification to all of our markets of operation.

From left to right: Alexander Gamov – Director of the Quality Assurance Department at MTS, Peter Marriott – Vice-President of SGS SA, Konstantin Timoshechkin – Manager in charge of business development at SGS S.A. (Eastern Europe).

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DR. MICHAEL HECKER'S INTERVIEW ON SKY NEWS

четверг, ноября 26, 2009

On Thursday, November 19, 2009, Dr. Michael Hecker gave an interview on Sky News. In the clip below, Dr. Hecker shares his thoughts on the current trends in the telecommunications industry including our recent acquisition of a controlling stake of Comstar-UTS by MTS.


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MTS CORPORATE STRATEGY VIDEO

вторник, ноября 17, 2009
Please watch below the video presenting our 3i strategy. We have shot this video over the last few months across various locations of MTS, including our retail stores, call centers and technical facilities. The video also includes interviews with the management of MTS: Mikhail Shamolin, President and CEO of the Company; Michael Hecker, Vice President for Strategy and Corporate Development; and Mikhail Gerchuk, Vice President and Chief Commercial Officer.



Below we have also posted a longer version of the video that includes in-depth interviews and more details about some of our recent initiatives, including the launch of Omlet.ru content portal.

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MTS Q3 2009 RESULTS

понедельник, ноября 16, 2009
On November 13, we disclosed our financial results for the third quarter 2009. As always, we posted a wealth of information about the results on our website – the press release, the presentation and the Excel spreadsheet with summary financial information for 2004-2009

As was stated during the conference call, we had a good quarter with revenues for the Group growing 12% q-on-q to nearly $2.3 billion on the back of healthy subscriber additions, a seasonal increase in usage, rising data consumption and a growing contribution from our retail sales. The Group’s OIBDA increased 11% q-on-q to $1.1 billion with an overall margin of 46.9%. Less the effect of our retail investments, the margin improved from Q2 2009 to 50.7%.

Though we continue to see an impact from macroeconomic uncertainty, we realized growth q-on-q in our Russian operations of 10% to 56 billion rubles. In addition to the seasonal dynamics of our business, we are succeeding in driving our active subscriber base and realizing 50% year-over-year growth in both data content and traffic revenues. We also witnessed a greater contribution from handset sales, which exceeded 3.2 billion rubles or 5.7% of revenue.

In Ukraine, we saw growth of 12% q-on-q to reach 2.2 billion hryvnas. We attribute this growth to seasonal factors, including increased usage and roaming, as well as certain marketing initiatives that adjust limits to our unlimited tariff plans. Changes to these tariff packages are allowing us to better monetize our customer base, while we are seeing a steady improvement in our brand perception and active subscriber base.

This was a busy quarter at MTS. As we discussed at our recent Analyst and Investor Day, we are focusing on a number of key initiatives to realize our 3i Strategy: the acquisition of 50.91% stake in Comstar-UTS and development of fixed-line broadband and pay-TV services in our markets; the continued roll-out of 3G and promotion of data and content services to our customers; the on-going development of our retail sales channels; the launch of our online portal, Omlet.ru; activity on the local and international capital markets; plus our ongoing focus on cost effectiveness.

During the conference call Mikhail Shamolin, President and CEO of MTS, also noted that contrary to speculation, the Company has no plans to enter into the Indian market. The management is continuously looking at markets abroad, but the focus remains on developing markets in Russia and the CIS for telecommunications services. This is the very essence of our 3i Strategy and in our view the best way to maximize value for all of our shareholders.

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MTS ANALYST AND INVESTOR DAY 2009

вторник, октября 20, 2009
Yesterday, we held the 2009 Analyst and Investor Day in Moscow with participation of close to 100 members of the investment community both foreign and local. The interactive format of the event provided an opportunity for those in attendance to closely interact with MTS’ top management. A range of important topics was discussed including the Company’s new 3i Strategy, integration of Comstar, financial management and guidance for 2009, as well as the developments in our markets of operation.

For those unable to join us at the event, presentations were made available on our website. Later this week, we will be posting audio recordings of the sessions and a few photos from the event.

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MTS Q2 2009 RESULTS

четверг, августа 13, 2009
On August 11, we disclosed our financial results for the second quarter 2009. As always, we posted a lot of information about the results on our website – the press release, the presentation and the Excel spreadsheet with summary financial information for 2004-2009. In the presentation, we have included detailed slides about our future strategic priorities, logic behind the intent to acquire a controlling stake in COMSTAR-UTS (see the original press release), as well as more insight into our retail development and handset distribution in Russia.

On the conference call, we have commented that there was a general improvement in our operating environment in Q2, aided by seasonal and organic growth factors. The Group recorded 12% q-o-q revenue growth to over $2.0 billion US dollars, driven by 2.8 million new subscribers and a seasonal improvement in usage.

Group OIBDA increased by 15% q-o-q to $953.8 million. Margin on our service revenue was over 50% as growth was aided by the seasonal pick-up in revenue, tighter cost control on SG&A expenses and the appreciation of the Russian ruble during the period. As we have forecasted, our build-out of our monobrand retail has put additional cost pressures on our margins, with the cumulative negative effect on the Group margin of 3.4 percentage points for a total margin of 47.2%. We witnessed significant improvement in the profitability of our Ukrainian business unit as well.

Our revenues in Russia grew 9% q-o-q to 51 billion rubles due to strong subscriber additions and a positive impact from seasonal usage. We are seeing significant subscriber additions through our greater use of alternative sales channels, such as temporary stands, kiosks and so forth. At the same time, we are currently in the build-out stage of our monobrand network, which delivers higher-value customers as ARPUs are 20% higher on average.

Given the changes we see in our markets and the initiatives by which we are fostering growth in our markets, we also elaborated on our strategic direction, introducing our concept of 3i to our shareholders. 3i focuses on three principles that will govern future growth at MTS: integration, Internet and innovation. Be sure to check out our presentation for more information.

With the disclosure behind us, we will be posting more information here on our blog about our new monobrand stores and overall retail strategy, as well as updates about our proposed acquisition of Comstar-UTS, in the coming weeks. Будем на связи (Budem na svyazi!), or we'll be in touch soon!

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MTS Q1 2009 RESULTS

понедельник, июня 01, 2009

On May 22, 2009, we have disclosed financial results for the first quarter of 2009. A wealth of information about the results is available on our website – the press release, the presentation and the excel spreadsheet with summary financial information for 2004-2009. Of particular interest, we suggest reviewing the slides in the presentation on the decomposition of our revenue dynamics in Russia and OIBDA margin dynamics for the Group, as well as MTS Russia retail development.

In Q1, Group’s revenues fell 24% year-on-year to $1.8 billion US dollars.  The primary driver for this loss was the depreciation of our core currencies as the Russian ruble declined year-on-year by 40% and the Ukrainian hryvna by 52% versus the US dollar.  In each of our markets of operation, we continue to see an impact on consumption patterns due to sustained global macroeconomic volatility, but overall usage and subscriber additions remain strong and in line with seasonal expectations.

Our Russian business delivered year-over-year growth of 7.5% despite both the ruble volatility and increased competitiveness in the market.  In general, consumption of higher-value products, like roaming, long-distance and mobile-to-fixed calling was significantly lower in the beginning of the period, due to an overall drop in business activity, but these figures stabilized during the last month. We do see migration trends to lower-value tariffs as customers are more conscious of their spending.  Otherwise, we see usage trends in the future following seasonal patterns until the overall macroeconomic environment changes significantly.

Recently, we announced our dividend for FY2008.  In line with our policy, we will pay out 60% of our net income or a total of 39.4 billion rubles or roughly $1.2 billion.  This year, we will also not pay dividends to those shares repurchased through our mandatory buy-back offer in August 2008.  This equals roughly 1.9% of total shares outstanding.  This will in turn increase the dividend yield by about 15 basis points.  This translates to a greater shareholder benefit from our share buyback program.

Balancing growth and shareholder returns is a cornerstone of our financial and operating strategy.  This is a clear differentiator for MTS as an investment.  Our recent actions - relatively modest investments in proprietary distribution, tapping local credit markets and successfully refinancing our existing debt – are aimed to both ensure growth and sustain profitability, both of which allow us to make substantial returns to shareholders both now and in the future.

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2008 FINANCIAL RESULTS

вторник, апреля 07, 2009

2008 was a successful year for MTS.

Our Group revenues grew 24.2% to over $10.2 billion US dollars year-over-year in 2008 as we generated strong, profitable growth in each of our markets of operations. We were successful in delivering on our profitability goal of a 50% OIBDA margin for the year, an indication that we are controlling costs where possible in what is both a volatile economic situation and an industry that is undergoing potentially profound change.

In the current environment, currency volatility is a pre-eminent short-term risk for MTS; it impacts both our clients’ consumption patterns and our results through translation policies, not to mention financial and cash-management practices. As such, we feel it is prudent to address our business unit performance in terms of local currency to demonstrate the true performance of our operations.

The materials we produce and circulate to the investment community – the press release, the presentation and our historical financial statements – will now feature local currency results, as well as the USD translation.

For full disclosure materials please visit http://www.mtsgsm.com/resources/reports/.

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