Mobile TeleSystems Announces Financial Results for the First Quarter Ended March 31, 2009
Published In: Business, New York, Russia 
Friday, May 22, 2009 7:16 AM
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MOSCOW, Russian Federation, May 22 /PRNewswire-FirstCall/ -- Mobile
TeleSystems OJSC (NYSE: MBT), today announces its consolidated US GAAP
financial results for the three months ended March 31, 2009.


Key Financial Highlights of Q1 2009

- Consolidated revenues down 24.0% y-o-y to $1,809.0 million
due to local currency depreciation and seasonal factors

- Consolidated OIBDA(1) down 29.3% to $831.5 million y-o-y
with 46.0% OIBDA margin due to currency depreciation and investments in
mono-brand retail network

- Consolidated net loss of $57.7 million due to $462.4
non-cash FOREX losses through US GAAP translation of
US dollar-denominated debt

Key Corporate and Industry Highlights

- Acquisition of mobile retailer Telefon.Ru

- Agreement with management team affiliated with Svyaznoy, the
leading Russian mobile phone retailer, to oversee MTS distribution
network

- Launch of 3G in Armenia

- Acquisition of mobile retailer Eldorado

- Placement of a 15 billion ruble bond

- Placement of new syndicated loan facility to restructure
$630 million loan due in Q2 2009

- Announcement of recommended dividend payment for FY 2008 of
RUB 39.40 billion ($1.16 billion) or RUB 20.15 per ordinary share
($2.96 per ADR(2)) that comes to 60% of US GAAP net income

Additional Developments

- MTS continues to see sustained macroeconomic volatility in
its markets of operations that may impact the financial and operational
performance throughout the Group.



Commentary

Mr. Mikhail Shamolin, President and CEO of MTS, commented: "In spite of
the volatile macroeconomic situation in Russia and the CIS, MTS demonstrated
year-over-year revenue growth in national currencies in all of its markets of
operation with the exception of Ukraine, where growth dynamics were inline
with the market's overall performance. The changes in the foreign exchange
rates impacted our US dollar-denominated results that led to a decline in the
Company's main US dollar-based financial indicators, however, the stable
financial position of MTS allows us to continue to execute on our business
development strategy." Mr. Shamolin added, "Despite the slight impact on our
operating margins, investments in our next-generation network infrastructure
and proprietary distribution provide MTS with a solid foundation for future
growth. The financial standing of the company remains our priority as our
strong balance sheet allows us to attract additional financing, including our
recent syndicate loan and ruble bond placements, and provides possibilities
to create additional shareholder value, such as our recommended payout of 60%
of net income as a shareholder return for 2008."

For further operational information and full consolidated unaudited
financial statements, please visit http://www.mtsgsm.com/news/reports/


***



Mobile TeleSystems OJSC ("MTS") is the largest mobile phone operator in
Russia and the CIS. Together with its subsidiaries, the Company services over
93.03 million subscribers. The regions of Russia, as well as Armenia,
Belarus, Turkmenistan, Ukraine, and Uzbekistan, in which MTS and its
associates and subsidiaries are licensed to provide GSM services, have a
total population of more than 230 million. Since June 2000, MTS' Level 3 ADRs
have been listed on the New York Stock Exchange (ticker symbol MBT).
Additional information about MTS can be found on MTS' website at
http://www.mtsgsm.com.


***



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 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, 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, risks
associated with operating in Russia and the CIS, volatility of stock price,
financial risk management and future growth subject to risks.


***

(1) See Attachment A for definitions and reconciliation of
OIBDA and OIBDA margin to their most directly comparable US GAAP
financial measures.

(2) US dollar amounts at the RUB/USD exchange rate of 34.0134 as of March
31, 2009.


For further information, please contact:
Arseny Tseytlin
Mobile TeleSystems, Moscow
Investor Relations
Tel: +7-495-223-2025
E-mail: ir@mts.ru



SOURCE Mobile TeleSystems (MTS)


 
Friday, May 22, 2009 7:16 AM

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