MTS reported first-quarter revenues up 2.7 percent year-on-year to RUB 100.2 billion, led by growth in its home market Russia. Adjusted OIBDA was down 2.0 percent to RUB 41.3 billion amid a rise in costs due to exchange rate fluctuations and the difficult economic conditions in Russia. The margin was down 2.0 percent points to 41.2 percent. Net profit fell 14.3 percent to RUB 10.9 billion and included RUB 3.5 billion in forex changes and RUB 1.7 billion in provisions for cash held at distressed banks in Ukraine.
After a rise in capex to RUB 25.4 billion due to the settlement of invoices from late 2014, free cash flow 56.1 percent to RUB 15.0 billion. MTS said it expects full-year capex at around RUB 85 billion. Revenue growth in 2015 is expected to exceed 2 percent, including over 3 percent growth in Russia, and the OIBDA margin will remain over 40 percent. MTS noted that it expects continued volatility in exchange rates in Russia and Ukraine as well as macroeconomic pressure that could impact its guidance.
In Russia, quarterly revenues rose 3.6 percent to RUB 90.4 billion, and OIBDA was up 0.9 percent to RUB 38.2 billion Mobile revenues increased 3.9 percent to RUB 70.5 billion, led by a 26 percent annual increase in data traffic revenue to RUB 18.1 billion. MTS said 43.5 percent of active subscribers are now using smartphones. The total mobile customer base was down 0.1 percent from the end of 2014 to 74.5 million, and ARPU fell 6.3 percent over the same period to RUB 315. FIxed-line revenues rose 0.9 percent year-on-year to RUB 15.3 billion.
