MTS, the biggest mobile operator in Russia, reported a flat net income for the first quarter of 2014, against a backdrop of challenging conditions in some of its overseas markets.
The company reported a net income of RUB13.03 billion ($379.8 million), up 0.5 per cent year-on-year, on revenue of RUB97.6 billion, up 5.1 per cent.
The largest chunk of revenue came from its Russian mobile operation, which saw sales of RUB68 billion, up 7.2 per cent.
Andrei Dubovskov, president and CEO of MTS, noted positive trends in its operations, including rising voice use and data adoption across customer segments; benefits in data adoption from its focus on low-cost devices; network quality which leads to a “leading customer experience”; and high-levels of profitability across all its operations.
MTS did, however, note a “slight decline” in its fixed business, due to falling numbers of subscribers to “traditional” telephony services.
In addition, it noted “volatility” in the Ukrainian market, and falling revenue in Armenia due to competitive pressure and the slowing macroeconomic environment.
Dubovskov said: “As we have seen in the past, our sensible strategy, organisational strengths, and focus on efficiency will provide us with the flexibility to manage our macroeconomic risks and continue to create value of our shareholders.”
The company has continued the rollout of its LTE network, launching in a number of new markets including St Petersburg.