MTS makes $1.1 bn investment in 9 months

MTS Capex in 9 months
Russian telecom network operator MTS today said it has made an investment of RUB 73.1 billion or $1.1 billion in the first 9 months of 2015.

The strategy of MTS was to develop mobile data networks in all telecom markets and deploy GPON in Moscow. MTS has also invested to modernize fixed line network in other markets in Russia. The investment in GPON in Moscow is part of MTS strategy to invest RUB 50 billion in the broadband project since 2011. The GPON related investment to replace the ADSL network is expected to complete this year.

MTS, which also operates in India as a subsidiary of Sistema, has retained Capex (capital expenditure) guidance for the current year. MTS will be investing RUB 92 billion in 2015. One of the main focus areas of MTS is to roll out 3G networks in Ukraine. Its total investment in 2014 was RUB 92 billion.

MTS has made an investment of RUB 66.14 billion in Russia, RUB 5.4 billion in Ukraine, RUB 476 million in Armenia, RUB 408 million in Turkmenistan, RUB 623 million in Uzbekistan in the first nine months of 2015. The Capex to revenue ratio was 23 percent. MTS will invest up to RUB 7 billion to develop 3G networks in Ukraine in the second half of 2015.

MTS revenue

MTS said its revenue rose 4.7 percent to RUB 317.9 billion in the first nine months of 2015. MTS generated 66 percent revenue from mobile business in Russia, 11 percent from handsets, 13 percent from fixed line business in Russia, 6 percent from Ukraine, 2 percent from Armenia, 1 percent from Turkmenistan and 1 percent from Uzbekistan.

Net profit of MTS rose 15.2 percent to RUB 42.4 billion.

Baburajan K
[email protected]