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MTS Drops into Quarterly Loss on Uzbekistan Write-Downs
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Russia's Mobile TeleSystems (MTS) has posted a second-quarter net loss of US$682 million thanks to a US$1.1 billion write down due the suspension of its operating license in Uzbekistan.
The company wrote down the value of its Uzbek subsidiary by US$579 million, and a further US$500 million for tax and associate liabilities. The company denies breaking any of the regulations and is fighting the suspension of the license.
In connection with recent developments, MTS said that it is conducting an internal review to evaluate events surrounding MTS-Uzbekistan and its employees, including communications with relevant international and local authorities, as well as correspondence with the General Prosecutor's Office, SACI and anti-monopoly organizations.
Excluding the write-downs, profits would have still fallen, by 2.6% to US$367 million. Revenues were also down, but by just 0.2% at US$3.12 billion mainly due to currency exchange fluctuations.
Mr. Andrei Dubovskov, President and CEO of MTS, commented, "We saw sustained growth in usage of voice and data products in each of our markets of operation. We also see signs of stability and moderate competitive pressures in our markets. Total revenues in Russia increased in ruble terms by 9% year-over-year to 82.8 billion rubles. Year-over-year our mobile business grew by 10% to 69.3 billion rubles."
Tags: [mts] [Russia] [Uzbekistan]
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