Russian mobile operator MTS announced revenues up 3.1 percent in 2014 to RUB 410.8 billion, in line with its outlook for at least 2 percent growth. Adjusted OIBDA rose 0.3 percent to RUB 175.5 billion, and the OIBDA margin was down 1.2 percent points over the year to 427 percent. Net profit fell 35.1 percent to RUB 51.8 billion. Group capex increased to RUB 92.6 billion from RUB 81.6 billion in 2013, led by the expansion of 3G, 4G and fibre networks in Russia. Capex was equal to 22.5 percent of revenue.
In addition to the earlier announced charge of RUB 5.1 billion for the bankruptcy of Delta Bank in Ukraine, profits were impacted by exchange rate fluctuations, inflationary pressure, higher costs for taxes and spectrum in Ukraine, salary increases, higher handset sales in Russia and the re-launch of services in Uzbekistan, MTS said. The operator also booked an impairment charge of RUB 3.2 billion on its stake in MTS Bank and a gain of 3.1 billion on the re-entry in Uzbekistan, as well as RUB 9 billion in forex losses from the depreciation in the ruble.
Revenue in Russia increased by 5.6 percent to RUB 374.9 billion, led by a 36 percent increase in mobile data revenue to RUB 64.4 billion. OIBDA in Russia increased by 4.5 percent to RUB 164.8 billion.
For 2015, the operator forecast group revenue up by more than 2 percent, an OIBDA margin greater than 40 percent, and Russian revenue up by over 3 percent. Capital expenditure will decrease slightly to RUB 85 billion, as the weaker ruble limits equipment purchases. The company warned that significant macroeconomic uncertainty and volatility across its markets of operation may cause it to revisit its guidance later.
