Tags: Russian | telecom | MBT | future

Russian Telecom MBT Preps for Future

By    |   Monday, 05 Dec 2011 01:51 PM

Russian telecommunications company Mobile TeleSystems OJSC (MBT) is posting healthy revenue and channeling more of its income towards future projects. Revenue in the third quarter of 2011 hit $3.3 billion, up 12.5 percent from the same period a year ago. Net income came to $361.8 million, down 25.2 percent from the third quarter of 2010, mainly due to foreign-exchange losses.

Company executives were generally happy with the results. "We delivered solid sequential and annual growth as we see increased consumption in all of our markets of operation," says President and CEO Andrei Dubovskov.

Expect beefy results to come in the future from investments in the telecommunications sector of the former Soviet Union. Capital expenditures hit $704.3 million during the quarter, up 77 percent from the same quarter a year earlier. Furthermore, the percentage of revenue bound for capital expenditures has been rising over recent quarters as well.

Now that the company is investing for growth, Wall Street institutions are prepping for more value. HSBC Securities, for example, recently reiterated an overweight recommendation on the stock.

Watch those debts

Moody's Investors Service, meanwhile, praises financial decisions the company has made, pointing out that it had been considering downgrading the company's ratings due fears the company, often referred to as MTS, may run into problems servicing debts late in 2011, but decided not to do as such, as of now.

"Given MTS's willingness and capacity to service its financial debt, including the guaranteed debt of its subsidiaries, we view the probability of material losses for creditors as modest," says Moody's analyst Julia Pribytkova in a statement.

Standard and Poor's analysts also have expressed concerns with the debt structure at Mobile TeleSystems OJSC. Plus, doing business in Russia brings its own set of challenges as well.

"From a stand-alone business perspective, we believe MTS's main credit risks are associated with the company's own organic and external growth plans, fierce competition in a saturated market, and the risks commonly associated with operating in Russia," Standard and Poor's analysts write.

The company next reports earnings on March 30.

© 2017 Newsmax Finance. All rights reserved.

 
1Like our page
2Share
Companies
Russian telecommunications company Mobile TeleSystems OJSC (MBT) is posting healthy revenue and channeling more of its income towards future projects. Revenue in the third quarter of 2011 hit $3.3 billion, up 12.5 percent from the same period a year ago. Net income came to...
Russian,telecom,MBT,future
343
2011-51-05
Monday, 05 Dec 2011 01:51 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved