The sign of "One-Line Traffic End" is seen near the MTS billboard.
Photo: Oleg Kharseev
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MTS Slashed Capital Spending Outlook
Russia’s cellular giant MobileTeleSystems, or MTS, has lowered the 2008 capital spending outlook to $2 billion from $2.5 billion, Interfax-Telecom reported Thursday.
According to the company’s files, it has slashed the 2008 capital spending outlook to $2 billion from $2.5 billion, attributing the reduction to the changes in currencies’ ratio, optimization of payment terms for equipment and delayed establishment of 3G nets in Moscow. MTS has prolonged the credit-against-good terms for equipment suppliers.
MTS capital investments reached $1.55 billion in January through September. At the same time, the company has preserved outlook for the 25-percent growth of revenues “given the increasing currency rate,” while the OIBDA efficiency is expected at 50 percent. Therefore, the MTS revenues will probably surpass $10.3 billion this year vs. $8.25 billion a year ago.
The nine-month net profit of MTS grew 11 percent to $1.785 billion under the U.S. GAAP; the revenues surged 32 percent to $7.827 billion; OIBDA stepped up 28 percent to $3.978 billion.
The company’s indebtedness amounted to $3.2 billion as of late September. But MTS placed two bond issues in October, 10 billion ruble each.
MTS is Russia’s biggest cellular operator in terms of subscriber base; it services over 90 million subscribers in Russia, Ukraine, Uzbekistan, Turkmenia, Armenia and Belarus.
www.kommersant.com
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