MTS said Thursday that its third-quarter earnings fell 5.7 percent because of a smaller foreign exchange gain and higher interest expenses than a year ago, although the results beat analysts' forecasts.
Net profit amounted to $475.5 million, compared with a $462.2 million average forecast in a Reuters poll, and was down from a revised $504.1 million in the third quarter of 2009.
MTS chief executive Mikhail Shamolin also said the company would be interested in buying South Korea's KT Corp's 80 percent stake in Russia's New Telephone Co., or NTC.
"We are quite a significant player in Russia's Far East, and NTC is a good company, so we will be looking at it," Shamolin told a news conference.
Revenue grew 10.8 percent to $2.91 billion, in line with forecast, MTS, part of oil-to-telecoms holding company Sistema, said in a statement.
MTS cut its full-year 2010 capital expenditure guidance to 20 percent of sales from the previous forecast of 22-24 percent after rescheduling payments to suppliers, and Shamolin said capex was likely to be higher in 2011 than in 2010.
MTS was trading up 3 percent midday Thursday in New York.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
