Sistema Released Unaudited Financial Results for Q2 Ended June 30
OREANDA-NEWS. Sistema JSFC (“Sistema” or the “Company”, together with its subsidiaries, “the Group”) (LSE: SSA), the largest publicly-traded diversified holding company in Russia and the CIS, today announces its unaudited consolidated US GAAP financial results for the second quarter ended June 30, 2013.
SECOND QUARTER HIGHLIGHTS
Consolidated revenues up 6.7% YoY to USD 8.5 billion
Adjusted OIBDA up 9.4% YoY to USD 2.1 billion, with an adjusted OIBDA margin of 25.1%
Consolidated net income attributable to the Group significantly increased YoY to USD 527.9 million. Adjusted net income attributable to the Group amounted to USD 345.1 million.
Net debt at the Corporate Holding level amounted to USD 1.4 billion as of June 30, 2013, compared to USD 1.5 billion as of March 31, 2013.
KEY CORPORATE HIGHLIGHTS IN 2Q 2013 AND POST REPORTING PERIOD
Sale of 49% in RussNeft for USD 1.2 billion. The transaction was completed in July 2013.
Sale of 70% of Sistema's shares in SG-trans to Financial Alliance for RUB 12.0 billion. The price of the deal is based on the valuation of SG-trans excluding SG-trading.
Sale of 15% of Sistema's shares in SG-trans to Unirail for RUB 2.5 billion. The transaction was completed in July 2013.
Sistema's AGM approved annual dividends of RUB 0.96 per Sistema's ordinary share for the twelve months ended December 31, 2012, amounting to a total of RUB 9.264 billion. The dividends were paid in full in August 2013.
New appointments to Sistema's Management Board: Vsevolod Rozanov as Senior Vice-President and Chief Financial Officer; Alexey Buyanov as First Vice-President, Portfolio Manager; and Alexey Chupin as Vice-President, Portfolio Manager.
Mikhail Shamolin, President and Chief Executive Officer of Sistema, commented:
“We are pleased to announce another strong set of quarterly results with excellent year-on-year revenue and OIBDA growth. Our numbers were largely driven by solid operating performance across our entire investment base and consistent execution of Sistema's strategy.
The key highlights for the period include continued growth of data services resulting in higher OIBDA and OIBDA margins at MTS; improved production and higher oil product sales at Bashneft; substantially narrowed OIBDA loss at SSTL and excellent double digit revenue and OIBDA increase at Detsky mir, where a combination of new stores, improved product range and reduction in operating costs led Detsky mir to outperform seasonal weaknesses.
Importantly, over the course of the last few months, we also achieved an impressive amount of cash inflows as a result of several announced deals. The restructuring of our transportation assets delivered over USD 430 million while in our energy holdings, Sistema divested its investment in RussNeft for a USD 1.2 billion cash consideration. Such deals serve to underline our track record of sourcing unique investment opportunities in Russia, securing them at attractive valuations, contributing our value added insight and monetising investment with substantial return.
Combined with the expected dividend flow, Sistema is on track to deliver record cash generation in 2013. This will provide us with the opportunity to further deleverage the holding centre, strengthen our M&A capabilities and increase rewards to shareholders”.
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