Mobile TeleSystems Announces Financial Results for the Second Quarter Ended June 30, 2015
Mr. Andrei Ushatskiy, MTS Vice President, Technology and IT, commented, “Beginning in late 2014, we accelerated the pace of construction and continued our aggressive build-out during H1 2015. Faster network development not only allows us to fulfil licensing requirements and make mobile broadband available to millions of our customers ahead of schedule, but also hedge risks related to ruble volatility.
Mr Ushatskiy continued, “In H1 2015, we focused on the deployment of tech-neutral networks by launching over 50% of the base stations in the 1800 MHz range. This approach resulted in quicker network deployment and better coverage as well as higher mobile data transfer speeds through the use of the LTE-Advanced technology.”
In March 2015, MTS disclosed estimated CAPEX spending in 2015 to be RUB 85 bln. “The accelerated build-out will not impact our CAPEX guidance for 2015,” added Mr. Ushatsky. “We are simply moving spending from the second-half of the year to the first-half of the year.”
MTS delivers peak speeds up to 75Mb/s on LTE networks launched in a single spectrum range. By aggregating spectrum in the 1800 MHz and 2600 MHz ranges, MTS increases peak speeds up 150 Mb/s and up to 187 Mb/s in some network segments. Over 81% of MTS’s 3G base stations support speeds up to 42 Mb/s, while the remaining 21% deliver speeds up to 21 Mb/s.
During H1 2015, the volume of mobile data traffic on the MTS’s mobile networks increased by 45% year-over-year. The highest growth in usage was registered in the Moscow region, the Southern region and the Volga region where usage grew by 75%, 59% and 47% respectively. Overall, in 2014, mobile data traffic on the MTS’s network in Russia grew 1.7 times.
MTS’s network development projects completed in H1 2015:
- MTS has completed large-scale projects aimed at enhancing spectrum availability and increasing coverage of LTE-1800 in Moscow and the Moscow region which has resulted in a two-fold increase in speeds on LTE-1800 up to 75 Mb/s within Moscow and in increasing speeds up to 112 Mb/s in some of the areas of “New Moscow”. In areas where LTE-Advanced with aggregation of two carriers is employed, the speeds have increased up to 187 Mb/s.
- MTS has signed agreements with key vendors for the delivery of the multi-band LTE equipment. Throughout 2015, MTS plans to launch tech-neutral LTE networks in 19 Russia’s regions and build LTE-Advanced networks with the aggregation of two and three carriers in 15 Russia’s regions.
- MTS has commercially launched LTE-1800 network in over 100 population centers in the Krasnodar Region.
- MTS has commercially launched LTE-1800 networks complimenting existing LTE networks spanning other ranges in Saint-Petersburg and Leningrad Region, in Chelyabinsk Region, Yaroslavl Region and Yakutia.
- ÌÒS has deployed LTE-Advanced with aggregation of spectrum in 1800 MHz and 2600 MHz ranges in Perm Krai, Rostov and Sverdlov Region.
- MTS has launched in Moscow and the Moscow Region LTE networks in the 800 MHz range, which has resulted in better network quality and greater coverage in the population centers and along major roads.
- MTS was the first operator in Russia to start deploying Small Cells in the LTE-Advanced standard with the aggregation of spectrum in 1800 MHz and 2600 MHz ranges providing for peak speeds of 150 Mb/s in Azov, Rostov Region.
- ÌÒS was the first operator in Russia to construct LTE-2600 network using active antenna systems in Altai Krai and Azov, Rostov Region, to improve indoor data transfer speeds.
- MTS has installed in Yekaterinburg and Novosibirsk cashing servers supplied by Akamai Technologies, Inc. (NASDAQ: AKAM), the world leader in cloud services for delivery of content an applications, which has provided MTS’s customers in the Urals and Siberia region with faster access to websites and network resources located outside Russia.
- MTS and VimpelCom have installed roughly 3,000 LTE base stations in 36 Russia’s regions within the framework of the network sharing agreement signed in December 20141 .
- Overall, MTS’s LTE networks have been launched in 78 of Russia’s regions.
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For further information, please contact in Moscow:
Joshua B. Tulgan
Director, Department of Corporate Finance and Investor Relations
Mobile TeleSystems OJSC
Tel: +7 495 223 2025
E-mail: ir@mts.ru
Learn more about MTS. Visit the official blog of the Investor Relations Department at www.mtsgsm.com/blog/
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Joshua B. Tulgan
Director, Department of Corporate Finance and Investor Relations
Mobile TeleSystems OJSC
Tel: +7 495 223 2025
E-mail: ir@mts.ru
Learn more about MTS. Visit the official blog of the Investor Relations Department at www.mtsgsm.com/blog/
Mobile TeleSystems OJSC ("MTS") is the leading telecommunications group in Russia, Ñentral and Eastern Europe, offering mobile and fixed voice, broadband and pay TV 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, Uzbekistan, Armenia, Turkmenistan and Belarus, a region that boasts 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 the MTS Group can be found at 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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Mr. Andrei Smelkov, MTS Vice President for Foreign Subsidiaries, commented, “We are pleased to announce the launch of a new mobile provider in Uzbekistan established by MTS and our partner, the State Committee for Communications, Development of Information Systems and Telecommunications Technologies of the Republic of Uzbekistan. The new entity is fully equipped to provide high-quality voice and mobile data services due to its ample capacity and coverage of roughly 90% of the territory of Uzbekistan.”
Financial results of UMS will be consolidated in the Group’s financial statements beginning from December 01, 2014.
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For further information, please contact in Moscow:
Joshua B. Tulgan
Director, Department of Corporate Finance and Investor Relations
Mobile TeleSystems OJSC
Tel: +7 495 223 2025
E-mail: ir@mts.ru
Learn more about MTS. Visit the official blog of the Investor Relations Department at www.mtsgsm.com/blog/
Mobile TeleSystems OJSC ("MTS") is the leading telecommunications group in Russia, Ñentral and Eastern Europe, offering mobile and fixed voice, broadband and pay TV 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, Uzbekistan, Armenia, Turkmenistan and Belarus, a region that boasts 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 the MTS Group can be found at 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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Press Release
Presentation
2014-11-21T00:00:00
The deal is expected to be finalized by the end of 2014 upon fulfillment of all conditions as set out in the shares issuance documentation.
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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
Learn more about MTS. Visit the official blog of the Investor Relations Department at www.mtsgsm.com/blog/
Mobile TeleSystems OJSC ("MTS") is the leading telecommunications group in Russia, Central and Eastern Europe, 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 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 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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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
Learn more about MTS. Visit the official blog of the Investor Relations Department at www.mtsgsm.com/blog/
Mobile TeleSystems OJSC ("MTS") is the leading telecommunications group in Russia, Central and Eastern Europe, 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 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 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 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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In accordance with the terms of a Settlement Agreement, on September 24, 2014, a 50.01% stake in the charter capital of UMS was transferred to MTS, while a state-owned unitary enterprise Center for Radio communications, Radio and TV broadcasting established and managed by the State Committee for Communications, Development of Information Systems and Telecommunications Technologies of the Republic of Uzbekistan retained the remaining 49.99% stake. Assets, equipment and infrastructure, which were previously owned by Uzdunrobita FE LLC, a former subsidiary of MTS in Uzbekistan, were transferred to UMS.
Prior to the transfer of the stake in UMS to MTS, UMS had been granted 2G, 3G and LTE licenses, and received frequencies, numbering capacity and other permits required for the launch of operations. UMS has also received guaranties for the investment protection and return of investments in accordance with the laws of the Republic of Uzbekistan. UMS plans commercial launch of the network on December 01, 2014.
The Settlement agreement is governed by English law and provides for resolution of any disputes arising out of the Settlement agreement in the International Court of Arbitration under International Chamber of Commerce in Paris (ICC).
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For further information, please contact in Moscow:
Joshua B. Tulgan
Director, Department of Corporate Finance and Investor Relations
Mobile TeleSystems OJSC
Tel: +7 495 223 2025
E-mail: ir@mts.ru
Learn more about MTS. Visit the official blog of the Investor Relations Department at www.mtsgsm.com/blog/
Mobile TeleSystems OJSC ("MTS") is the leading telecommunications group in Russia, Ñentral and Eastern Europe, offering mobile and fixed voice, broadband and pay TV 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, Armenia, Turkmenistan 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 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 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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