Mobile TeleSystems Announces Financial Results for the First Quarter Ended March 31, 2014
MOSCOW, RUSSIAN FEDERATION, May 27, 2014 /PRNewswire/ --
Mobile TeleSystems OJSC ("MTS" - NYSE: MBT), the leading telecommunications provider in Russia and the CIS, today announces its unaudited US GAAP financial results for the three months ended March 31, 2014.
Key Financial Highlights of Q1 2014
- Consolidated Group revenues increased 5% y-o-y to RUB 98 billion
- Mobile service revenue in Russia rose 7% y-o-y to RUB 68 billion
- Data traffic revenue in Russia grew 42% y-o-y to RUB 14 billion
- Consolidated Group OIBDA[1] up 5% y-o-y to RUB 41 billion
- Group OIBDA margin improved 0.1 pp to 42.5%
- Consolidated net income[2] of RUB 13 billion
- Free cash-flow from continuing operations[3] grew 40% to RUB 34 billion for the first three months of 2014
Key Corporate and Industry Highlights
- Announced new 3D Strategy: Data, Differentiation, Dividends
- Launched LTE network in Tatarstan, Primorsky Krai, Sverdlovsk Region, St. Petersburg , Leningrad Region, Adygeya, Komi, Tver region, Stavropol Krai, Novgorod Region
- Concluded a credit facility with Citibank Europe PLC and Swedish Export Credit Corporation for up to $300 mln (RUB 10.9 bln at the date of conclusion) supported by Sweden's Exportkreditnamnden (EKN)
- Appointed Mr. Valery Shorzhin as Vice President for Procurement and Administration, Member of the Executive Board
- Annual dividend recommendation by the MTS Board of RUB 18.6 per ordinary MTS share (RUB 37.2 per ADR), or a total of RUB 38.435 bln based on the full-year 2013 financial results, upon acceptance by the AGM and completion of this payment, MTS will have paid out up to RUB 49.2 bln rubles based on fiscal year 2013 financial results
- Acquired a 10.82% stake in OZON Holdings ("OZON"), the leading Russian e-commerce company, through an additional share issuance for $75 mln (RUB 2.7 billion at the date of transaction)
- Sold the remaining 49% stake in Business-Nedvizhimost CJSC to Sistema JSFC for a price of RUB 3.1 bln
- Redeemed the remaining amount of RUB 15 bln series 04 bond
- Appointed Mr. Andrei Ushatskiy as Vice President, Chief Technology and Information Officer, Member of the Executive Board
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1. See Attachment A for definitions and reconciliation of OIBDA and OIBDA margin to their most directly comparable US GAAP financial measures.
2. Attributable to the Group.
3. See Attachment B for reconciliation of free cash-flow to net cash provided by operating activity.
Commentary
Commented Andrei Dubovskov, President and Chief Executive Officer of MTS, "For the period we witnessed a continuation of the drivers of growth and profitability that have been seen over the previous 1 to 2 years. Revenue for the Group grew 5% year-over-year to 97.6 billion rubles. In each of our markets of operations we continue to see many positive trends, including rising usage of voice and strong data adoption in virtually all customer segments; benefits in data adoption from our focus in retail in Russia on sales of low-cost devices; both internal data and independent sources confirm MTS's leadership in network speed, customer service, brand and other important factors that contribute to our leading customer experience; and high-levels of profitability in each our markets."
Vasyl Latsanych, Vice President, Marketing and Chief Marketing Officer, continued, "In Q1, our Russian business grew 5% year-over-year to 87.3 billion rubles. Driving this growth was our mobile business, which grew over 7% year-over-year, which was largely driven by the adoption of data plans as smartphone penetration among our active subscribers reached almost 35%, and our data attach rate increased to over 42%. This contributed to an increase in data traffic revenue of 42% year-over-year. Sales of handsets increased 8% year-over-year reflecting rising demand for higher-quality, low-cost smartphones, and we continued to see strong additions of high-value subscribers for the period. Our sales of SIM-cards continue to be both consistent and sustainable; churn in Russia was stable at 9.1% for the quarter, which was still lower than by 40 basis points compared to Q1 2013."
Mr. Latsanych continued, "Our fixed business recorded a slight decline under 2% year-on-year. Steady growth in our Moscow-based GPON additions and the migration of older, ADSL customers was offset by the falling numbers of traditional, fixed-line telephony services. At the end of the period, we realized 900,000 telephony subscribers and over 300,000 Internet/pay-tv customers through our GPON network in Moscow. In the regions, we also saw modest growth due to the on-going modernization of our networks and closer integration of acquired businesses.
"In Ukraine, we continue to see volatility in the market. Revenues grew year-over-year by 1.4% to 2.4 million hryvnas. In Armenia, revenue fell by over 3% year-over-year to nearly 17.1 billion drams. Competitive pressures and the slowing macroeconomic environment may impact our performance, but we remain the dominant operator in this market. In Turkmenistan, we delivered a year-on-year increase of 36% in revenues up to nearly 66 million manats. Operating indicators are characteristically volatile for an early-stage business, but more importantly we are steadily growing our subscriber base. Further investments in coverage, capacity and 3G/UMTS will allow us to realize further growth in this market."
Concluded Mr. Dubovskov, "Naturally we must acknowledge the macro-economic issues that we face. Since last year, estimates of GDP performance in our core markets have moved downward, and we witnessed currency volatility in Russia and Ukraine. This may impact our performance, but for now, we continue to see steady, profitable growth throughout our markets of operation. But this is not necessarily new for us. As we have seen in the past, our sensible strategy, organizational strengths and focus on efficiency will provide us with the flexibility to manage our macroeconomic risks and continue to create value for our shareholders."
Additional Information
MTS continues to see sustained macroeconomic volatility in its markets of operations that may impact the financial and operational performance throughout the Group
This press release provides a summary of some of the key financial and operating indicators for the period ended March 31, 2014. For full disclosure materials, please visit http://www.mtsgsm.com/resources/reports/.
Financial Summary
RUB mln Q1'14 Q1'13 y-o-y Q4'13 q-o-q
Revenues 97,562 92,854 5.1% 104,751 -6.9%
OIBDA 41,451 39,347 5.3% 44,988 -7.9%
- margin 42.5% 42.4% +0.1pp 42.9% -0.4pp
Net operating income 23,437 21,578 8.6% 27,219 -13.9%
- margin 24.0% 23.2% +0.8pp 26.0% -2.0pp
Net income from
continuing
operations 13,025 12,911 +0.9% 19,750 -34.1%
- margin 13.4% 13.9% -0.5pp 18.9% -5.5pp
Net income
attributable to the
Group 13,025 12,963 +0.5% 19,750 -34.1%
- margin 13.4% 14.0% -0.6pp 18.9% -5.5pp
Russia Highlights
RUB mln Q1'14 Q1'13 y-o-y Q4'13 q-o-q
Revenues[4] 87,252 82,748 5.4% 94,154 -7.3%
- mobile 67,965 63,391 7.2% 71,556 -5.0%
- fixed 15,184 15,454 -1.8% 16,725 -9.2%
-sales of handsets &
accessories 6,065 5,640 7.5% 7,760 -21.8%
OIBDA 37,773 35,847 5.4% 41,107 -8.1%
- margin 43.3% 43.3% stable 43.7% -0.4pp
Net income 9,610 11,833 -18.8% 17,117 -43.9%
- margin 11.0% 14.3% -3.3pp 18.2% -7.2pp
Q1'13 Q2'13 Q3'13 Q4'13 Q1'14
ARPU (RUB) 292.1 305.8 318.7 314.8 299.2
MOU (min) 310 332 337 345 325
Churn rate (%) 9.5% 9.4% 9.1% 9.0% 9.1%
Ukraine Highlights
UAH mln Q1'14 Q1'13 y-o-y Q4'13 q-o-q
Revenues 2,418 2,384 1.4% 2,441 -0.9%
OIBDA 1,236 1,227 0.7% 1,276 -3.1%
- margin 51.1% 51.5% -0.4pp 52.3% -1.2pp
Net income 1,034 504 105.4% 636 62.7%
- margin 42.8% 21.1% +21.7pp 26.1% +16.7pp
Q1'13 Q2'13 Q3'13 Q4'13 Q1'14
ARPU (UAH) 37.40 38.32 38.92 35.08 34.93
MOU (min) 600 580 561 557 544
Churn rate (%) 6.7% 6.0% 6.6% 6.8% 6.3%
SAC (UAH) 51.9 56.2 57.1 53.3 49.4
- dealer commission 30.6 30.2 36.7 29.7 29.4
- adv&mktg 12.3 16.8 12.6 14.8 12.1
- handset subsidy 1.6 1.2 0.6 0.9 0.7
- SIM card & voucher 7.3 8.0 7.1 7.8 7.2
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4. Revenue, net of intercompany between mobile and fixed.
Armenia Highlights
AMD mln Q1'14 Q1'13 y-o-y Q4'13 q-o-q
Revenues 17,138 17,803 -3.7% 19,778 -13.3%
OIBDA 7,802 8,947 -12.8% 5,298 47.3%
- margin 45.5% 50.3% -4.8pp 26.8% +18.7pp
Net
income/(loss) 1,855 2,670 -30.5% (1,442) n/a
- margin 10.8% 15.0% -4.2pp n/a n/a
Q1'13 Q2'13 Q3'13 Q4'13 Q1'14
ARPU (AMD) 2,433.6 2,750.2 3,108.2 2,690.6 2,316.3
MOU (min) 330 365 389 398 399
Churn rate (%) 8.2% 8.6% 8.0% 6.5% 6.3%
SAC (AMD) 6,506.2 6,287.4 6,077.1 6,800.7 5,129.8
Turkmenistan Highlights
TMT mln Q1'14 Q1'13 y-o-y Q4'13 q-o-q
Revenues 66 48 36.1% 72 -8.4%
OIBDA 26 13 94.7% 44 -41.1%
- margin 39.0% 27.2% +11.8pp 60.6% -21.6pp
Net income 21 13 67.1% 39 -46.7%
- margin 31.8% 25.8% +6.0pp 54.6% -22.8pp
Q1'13 Q2'13 Q3'13 Q4'13 Q1'14
ARPU (TMT) 9.7 11.1 12.0 11.9 11.0
MOU (min) 473 527 541 531 505
Churn rate (%) n/a 17% 6.7% 11.1% 11.5%
SAC (TMT) 9.5 13.6 18.1 22.1 23.9
CAPEX Highlights
RUB mln FY 2011 FY 2012 FY 2013 Q1'14
Russia 66,869 82,896 70,910 9,257
- as % of rev 21.4% 24.5% 20.0% 10.6%
Ukraine 4,487 4,125 8,840 608
- as % of rev 13.4% 10.9% 22.2% 6.4%
Armenia 1,344 751 1,093 80
- as % of rev 22.8% 12.5% 17.5% 5.5%
Turkmenistan n/a 11 732 145
- as % of rev n/a 3.4% 25.8% 18.0%
Group 72,798 87,783 81,575 10,091
- as % of rev 20.9% 23.2% 20.5% 10.3%
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Learn more about MTS. Visit the official blog of the Investor Relations Department at http://www.mtsgsm.com/blog/ and follow us on Twitter: JoshatMTS
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Mobile TeleSystems OJSC ("MTS") is the leading telecommunications group in Russia and the CIS, offering mobile and fixed voice, broadband, pay TV as well as content and entertainment services in one of the world's fastest growing regions. Including its subsidiaries, the Group services over 100 million mobile subscribers. The Group has been awarded GSM licenses in Russia, Ukraine, Turkmenistan, Armenia and Belarus, a region that boasts a total population of more than 200 million. Since June 2000, MTS' Level 3 ADRs have been listed on the New York Stock Exchange (ticker symbol MBT). Additional information about the MTS Group can be found at http://www.mtsgsm.com.
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Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of MTS, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify forward looking statements by terms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might," and the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not undertake or intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. We refer you to the documents MTS files from time to time with the U.S. Securities and Exchange Commission, specifically the Company's most recent Form 20-F. These documents contain and identify important factors, including those contained in the section captioned "Risk Factors" that could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, the severity and duration of current economic and financial conditions, including volatility in interest and exchange rates, commodity and equity prices and the value of financial assets; the impact of Russian, U.S. and other foreign government programs to restore liquidity and stimulate national and global economies, our ability to maintain our current credit rating and the impact on our funding costs and competitive position if we do not do so, strategic actions, including acquisitions and dispositions and our success in integrating acquired businesses, potential fluctuations in quarterly results, our competitive environment, dependence on new service development and tariff structures, rapid technological and market change, acquisition strategy, risks associated with telecommunications infrastructure, governmental regulation of the telecommunications industries and other risks associated with operating in Russia and the CIS, volatility of stock price, financial risk management and future growth subject to risks.
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Attachments to the First Quarter 2014
Earnings Press Release
Attachment A
Non-GAAP financial measures. This press release includes financial information prepared in accordance with accounting principles generally accepted in the United States of America, or US GAAP, as well as other financial measures referred to as non-GAAP. The non-GAAP financial measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with US GAAP. Due to the rounding and translation practices, Russian ruble and functional currency margins, as well as other non-GAAP financial measures, may differ.
Operating Income before Depreciation and Amortization (OIBDA) and OIBDA margin. OIBDA represents operating income before depreciation and amortization. OIBDA margin is defined as OIBDA as a percentage of our net revenues. OIBDA may not be similar to OIBDA measures of other companies, is not a measurement under accounting principles generally accepted in the United States and should be considered in addition to, but not as a substitute for, the information contained in our consolidated statement of operations and comprehensive income. We believe that OIBDA provides useful information to investors because it is an indicator of the strength and performance of our ongoing business operations, including our ability to fund discretionary spending such as capital expenditures, acquisitions of mobile operators and other investments and our ability to incur and service debt. While depreciation and amortization are considered operating costs under generally accepted accounting principles, these expenses primarily represent the non-cash current period allocation of costs associated with long-lived assets acquired or constructed in prior periods. Our OIBDA calculation is commonly used as one of the bases for investors, analysts and credit rating agencies to evaluate and compare the periodic and future operating performance and value of companies within the wireless telecommunications industry. OIBDA can be reconciled to our consolidated statements of operations as follows:
Group (RUB mln) Q1'13 Q2'13 Q3'13 Q4'13 Q1'14
Operating income 21,578 25,566 27,395 27,219 23,437
Add: D&A 17,770 18,819 18,895 17,769 18,014
OIBDA 39,347 44,385 46,290 44,988 41,451
Russia (RUB mln) Q1'13 Q2'13 Q3'13 Q4'13 Q1'14
Operating income 20,865 22,977 25,167 25,865 22,464
Add: D&A 14,982 16,245 16,356 15,243 15,310
OIBDA 35,847 39,222 41,523 41,107 37,773
Ukraine (RUB mln) Q1'13 Q2'13 Q3'13 Q4'13 Q1'14
Operating income 2,261 2,978 3,397 3,109 2,634
Add: D&A 2,411 2,236 2,165 2,085 2,256
OIBDA 4,672 5,214 5,562 5,194 4,890
Armenia (RUB mln) Q1'13 Q2'13 Q3'13 Q4'13 Q1'14
Operating
income/(loss) 280 447 601 (27) 221
Add: D&A 385 345 382 448 440
OIBDA 665 791 983 420 662
Turkmenistan (RUB
mln) Q1'13 Q2'13 Q3'13 Q4'13 Q1'14
Operating income 138 229 305 488 289
Add: D&A 2 1 4 11 25
OIBDA 140 230 309 498 315
OIBDA margin can be reconciled to our operating margin as follows:
Group Q1'13 Q2'13 Q3'13 Q4'13 Q1'14
Operating margin 23.2% 26.2% 26.5% 26.0% 24.0%
Add: D&A 19.1% 19.3% 18.3% 17.0% 18.5%
OIBDA margin 42.4% 45.5% 44.8% 42.9% 42.5%
Russia Q1'13 Q2'13 Q3'13 Q4'13 Q1'14
Operating margin 25.2% 26.6% 27.5% 27.5% 25.7%
Add: D&A 18.1% 18.8% 17.9% 16.2% 17.5%
OIBDA margin 43.3% 45.4% 45.4% 43.7% 43.3%
Ukraine Q1'13 Q2'13 Q3'13 Q4'13 Q1'14
Operating margin 24.9% 30.0% 31.4% 31.3% 27.6%
Add: D&A 26.6% 22.5% 20.0% 21.0% 23.6%
OIBDA margin 51.5% 52.6% 51.5% 52.3% 51.2%
Armenia Q1'13 Q2'13 Q3'13 Q4'13 Q1'14
Operating margin 21.1% 29.5% 33.2% -1.7% 15.2%
Add: D&A 29.1% 22.8% 21.2% 28.2% 30.2%
OIBDA margin 50.3% 52.3% 54.4% 26.5% 45.4%
Turkmenistan Q1'13 Q2'13 Q3'13 Q4'13 Q1'14
Operating margin 26.7% 32.9% 37.8% 59.5% 35.9%
Add: D&A 0.4% 0.2% 0.5% 1.3% 3.1%
OIBDA margin 27.1% 33.1% 38.3% 60.8% 39.0%
***
Attachment B
Net debt represents total debt less cash and cash equivalents and short-term investments. Our net debt calculation is commonly used as one of the bases for investors, analysts and credit rating agencies to evaluate and compare our periodic and future liquidity within the wireless telecommunications industry. The non-GAAP financial measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with US GAAP.
Net debt can be reconciled to our consolidated statements of financial position as follows:
As of Dec 31, As of Mar 31,
RUB mln 2013 2014
Current portion of debt and of capital
lease obligations 25,064 25,046
Long-term debt and capital lease
obligations 194,083 196,605
Total debt 219,147 221,651
Less:
Cash and cash equivalents 30,612 37,207
Short-term investments 14,633 39,073
Net debt 173,903 145,371
Twelve months
Nine months ended Three months ended
ended Mar 31,
RUB mln Dec 31, 2013 2014 Mar 31, 2014
A B C=A+B
Net operating
income 80,180 23,437 103,617
Add: D&A 55,483 18,014 73,497
LTM OIBDA 135, 663 41,451 177,114
Free cash-flow can be reconciled to our consolidated statements of cash flow as follows:
For three
months For three months
ended Mar 31, ended Mar 31,
2013 2014
RUB mln
Net cash provided by operating activities 36,647 44,068
Less:
Purchases of property, plant and equipment (9 194) (8 654)
Purchases of intangible assets (3 304) (1 437)
Proceeds from sale of property, plant and
equipment 140 123
24,289 34,101
Free cash flow
***
Attachment C
Definitions
Subscriber. We define a "subscriber" as an individual or organization whose account shows chargeable activity within sixty one days in the case of post-paid tariffs, or one hundred and eighty three days in the case of our pre-paid tariffs, or whose account does not have a negative balance for more than this period.
Average monthly service revenue per subscriber (ARPU). We calculate our ARPU by dividing our service revenues for a given period, including interconnect, guest roaming fees and connection fees, by the average number of our subscribers during that period and dividing by the number of months in that period.
Average monthly minutes of usage per subscriber (MOU). MOU is calculated by dividing the total number of minutes of usage during a given period by the average number of our subscribers during the period and dividing by the number of months in that period.
Churn. We define our "churn" as the total number of subscribers who cease to be a subscriber as defined above during the period (whether involuntarily due to non-payment or voluntarily, at such subscriber's request), expressed as a percentage of the average number of our subscribers during that period.
Subscriber acquisition cost (SAC). We define SAC as total sales and marketing expenses and handset subsidies for a given period. Sales and marketing expenses include advertising expenses and commissions to dealers. SAC per gross additional subscriber is calculated by dividing SAC during a given period by the total number of gross subscribers added by us during the period.
***
MOBILE TELESYSTEMS
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS OF MARCH 31, 2014 (UNAUDITED) AND DECEMBER 31, 2013
(Amounts in millions of RUB)
As of March 31, As of December 31,
2014 2013
CURRENT ASSETS:
Cash and cash equivalents 37,207 30,612
Short-term investments 39,073 14,633
Trade receivables, net 30,614 34,554
Accounts receivable, related parties 1,183 965
Inventory and spare parts 7,476 8,498
VAT receivable 6,245 6,651
Prepaid expenses and other current assets 20,328 20,763
Total current assets 142,126 116,676
PROPERTY, PLANT AND EQUIPMENT 261,467 270,660
INTANGIBLE ASSETS 73,798 74,329
INVESTMENTS IN AND ADVANCES TO ASSOCIATES 13,486 13,393
OTHER INVESTMENTS 3,960 4,392
OTHER NON CURRENT ASSETS 8,021 6,074
Total assets 502,858 485,524
CURRENT LIABILITIES
Trade accounts payable 20,738 23,864
Accrued expenses and other current liabilities 55,866 49,619
Accounts payable, related parties 3,112 3,315
Current portion of long-term debt, capital lease
obligations 25,046 25,064
Total current liabilities 104,762 101,862
LONG-TERM LIABILITIES
Long-term debt, capital lease obligations 196,605 194,084
Deferred income taxes 23,587 21,202
Deferred revenue and other long-term liabilities 9,521 9,391
Total long-term liabilities 229,713 224,677
Total liabilities 334,475 326,539
Redeemable noncontrolling interests 2,932 2,932
SHAREHOLDERS' EQUITY:
Total shareholders' equity attributable to the Group 161,179 151,931
Non-redeemable noncontrolling interest 4,272 4,122
TOTAL SHAREHOLDERS` EQUITY 165,451 156,053
Total liabilities and shareholders' equity 502,858 485,524
MOBILE TELESYSTEMS
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
FOR THE THREE MONTHS ENDED MARCH 31, 2014 AND 2013 (UNAUDITED)
(Amounts in millions of RUB except per share amount)
Three months ended Three months ended
March 31, 2014 March 31, 2013
Net operating revenue
Service revenue and connection fees 91,469 87,172
Sales of handsets and accessories 6,093 5,683
97,562 92,854
Operating expenses
Cost of services (20,819) (20,252)
Cost of handsets and accessories (5,342) (4,750)
Sales and marketing expenses (5,045) (5,166)
General and administrative expenses (22,678) (21,213)
Depreciation and amortization expense (18,014) (17,770)
Provision for doubtful accounts (1,059) (508)
Impairment of long-lived assets - (56)
Other operating expenses (1,168) (1,560)
Net operating income 23,437 21,578
Currency exchange and transaction loss (3,766) (1,470)
Other (expenses)/income:
Interest income 958 553
Interest expense, net of capitalized interest (4,173) (4,297)
Other income 576 266
Total other expenses, net (2,639) (3,478)
Income from continuing operations before provision
for income taxes 17,032 16,629
Provision for income taxes (3,792) (3,474)
Net income from continuing operations 13,240 13,156
Net income from discontinued operations - 51
Net income 13,240 13,207
Less net income attributable to the noncontrolling
interest (215) (245)
Net income attributable to the Group 13,025 12,963
Other comprehensive income/(loss), net of taxes
Currency translation adjustment (6,211) (2,211)
Unrealized gains on derivatives 2,355 255
Unrecognized actuarial losses (5) (152)
Total other comprehensive loss, net of taxes (3,861) (2,108)
Total comprehensive income 9,379 11,100
Less comprehensive income attributable to the
noncontrolling interests (316) (442)
Comprehensive income attributable to the Group 9,064 10,657
Weighted average number of common shares
outstanding, in millions - basic and diluted 1,989 1,989
Earnings per share attributable to the Group - basic
and diluted:
EPS from continuing operations 6.55 6.49
EPS from discontinued operations - 0.03
Total EPS 6.55 6.52
MOBILE TELESYSTEMS
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2014 AND
2013 (UNAUDITED)
(Amounts in millions of RUB)
Three months ended Three months ended
March 31, 2014 March 31, 2013
Net cash provided by operating activities -
continuing operations 44,068 36,647
Net cash used in operating activities -
discontinued operations - (378)
Net cash provided by operating activities 44,068 36,269
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment (8,654) (9,194)
Purchases of intangible assets (1,437) (3,304)
Proceeds from sale of property, plant and
equipment 123 140
Purchases of short-term investments (24,976) (17,191)
Proceeds from sale of short-term investments 1,984 2,656
Net cash used in investing activities -
continuing operations (32,960) (26,893)
Net cash provided by investing activities -
discontinued operations - 98
Net cash used in investing activities (32,960) (26,795)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of notes (1,819) -
Notes and debt issuance cost paid (22) -
Capital lease obligation principal paid (10) (53)
Dividends paid (56) (50)
Proceeds from loans - -
Loan principal paid (2,865) (10,856)
Other financial activities 23 (20)
Net cash used in financing activities -
continuing operations (4,749) (10,979)
Net cash provided by/(used in) financing
activities - discontinued operations - -
Net cash used in financing activities (4,749) (10,979)
Effect of exchange rate changes on cash and cash
equivalents 236 76
NET INCREASE/(DECREASE) IN CASH AND CASH
EQUIVALENTS: 6,595 (1,429)
CASH AND CASH EQUIVALENTS, at beginning of the
period 30,612 22,014
CASH AND CASH EQUIVALENTS, at end of the period 37,207 20,585
Less cash and cash equivalents from discontinued
operations, at end of period - (97)
CASH AND CASH EQUIVALENTS from continuing
operations, at end of period 37,207 20,488
For further information, please contact in Moscow: Joshua B. Tulgan, Director, Corporate Finance & Investor Relations, Mobile TeleSystems OJSC, Tel: +7-495-223-2025, E-mail: ir@mts.ru
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