MTS, the biggest operator in Russia, announced solid results for the second quarter of 2013, with Andrei Dubovskov, its president and CEO, attributing continued growth to “the increased adoption of data services, as well as sustained sales of smartphone and stable subscriber dynamics”.

On a group level, it reported a net profit of RUB29.05 billion ($880.84 million), compared with a prior-year loss of RUB23.14 billion, on revenue of RUB97.45 billion, up 5 per cent from RUB92.78 billion.

In the prior year period, the company reported a significant loss from discontinued operations, related to its Uzbekistan operation.

Mobile service revenue in its core Russian unit increased by 5.9 per cent to RUB66.19 billion, with its domestic fixed line unit also seeing growth of 4.4 per cent to RUB14.44 billion.

Data revenue increased by 40 per cent to RUB10.97 billion, driven by sales of smartphones with bundled service plans and “preloaded with usage-generating apps and functionality”, as well as point-of-sale loans to encourage customers to upgrade to smartphones, and the availability of devices at a range of price points.

It also noted revenue growth in its other operations – Ukraine, Armenia and Turkmenistan.

The company ended the period with 102.77 million mobile subscribers, up 0.9 per cent compared to the end of the prior sequential quarter.

MTS noted that during the period, it reached an agreement with Altimo, Nomihold, and other associated parties related to its investment in Bitel, a mobile operator in the Kyrgyz Republic.

It has also inked LTE deals with Ericsson for the Volga, Siberian, Ural and Southern Federal Districts of Russia, and NSN for Moscow and the Central Federal District.

Looking forward, the company’s management reiterated guidance for revenue growth of 5 to 7 per cent in its core Russia and Ukraine businesses.