MOSCOW, Russian Federation, May 22 /PRNewswire-FirstCall/ -- Mobile TeleSystems OJSC (NYSE:MBT), today announces its consolidated US GAAP financial results for the three months ended March 31, 2009.
Key Financial Highlights of Q1 2009
- Consolidated revenues down 24.0% y-o-y to $1,809.0 million due to local currency depreciation and seasonal factors
- Consolidated OIBDA(1) down 29.3% to $831.5 million y-o-y with 46.0% OIBDA margin due to currency depreciation and investments in mono-brand retail network
- Consolidated net loss of $57.7 million due to $462.4 non-cash FOREX losses through US GAAP translation of US dollar-denominated debt
Key Corporate and Industry Highlights
- Acquisition of mobile retailer Telefon.Ru
- Agreement with management team affiliated with Svyaznoy, the leading Russian mobile phone retailer, to oversee MTS distribution network
- Launch of 3G in Armenia
- Acquisition of mobile retailer Eldorado
- Placement of a 15 billion ruble bond
- Placement of new syndicated loan facility to restructure $630 million loan due in Q2 2009
- Announcement of recommended dividend payment for FY 2008 of RUB 39.40 billion ($1.16 billion) or RUB 20.15 per ordinary share ($2.96 per ADR(2)) that comes to 60% of US GAAP net income
- MTS continues to see sustained macroeconomic volatility in its markets of operations that may impact the financial and operational performance throughout the Group.
Mr. Mikhail Shamolin, President and CEO of MTS, commented: "In spite of the volatile macroeconomic situation in Russia and the CIS, MTS demonstrated year-over-year revenue growth in national currencies in all of its markets of operation with the exception of Ukraine, where growth dynamics were inline with the market's overall performance. The changes in the foreign exchange rates impacted our US dollar-denominated results that led to a decline in the Company's main US dollar-based financial indicators, however, the stable financial position of MTS allows us to continue to execute on our business development strategy." Mr. Shamolin added, "Despite the slight impact on our operating margins, investments in our next-generation network infrastructure and proprietary distribution provide MTS with a solid foundation for future growth. The financial standing of the company remains our priority as our strong balance sheet allows us to attract additional financing, including our recent syndicate loan and ruble bond placements, and provides possibilities to create additional shareholder value, such as our recommended payout of 60% of net income as a shareholder return for 2008."