Russia's MTS says forex gain lifts Q1 earnings 33 pct y/y
MOSCOW, May 19 (Reuters) - Russia's biggest mobile phone operator MTS said on Thursday its first-quarter net profit rose 33 percent, year-on-year, helped by a foreign exchange gain.
Net profit in January-March rose to 14.5 billion roubles ($220 million) from 10.9 billion roubles a year ago after a 2.3 billion rouble forex gain, it said in a statement.
Earnings were also helped by a lack of loss provisions related to its deposits at insolvent Ukrainian banks which totalled 1.7 billion roubles in the first quarter of 2015.
Adjusted operating income before depreciation and amortisation, which does not take those year-ago provisions into account, were flat at 41.3 billion roubles, while an OIBDA Operating income before depreciation and amortisation margin slid to 38.2 percent from 41.2 percent.
Revenues grew 8 percent to 108 billion roubles thanks to increased handset sales, spurred by price cuts, as well as higher uptake of Internet services and the launch of third-generation (3G) data networks in Ukraine.
Free cash flow was up 37 percent at 20.5 billion roubles as capital expenditures decreased 28 percent year-on-year to 18 billion roubles, the company said.
MTS, controlled by the Sistema conglomerate, confirmed its 2016 guidance and said the board had approved a three-year share buyback programme for up to 30 billion roubles announced last month.
($1 = 66.5223 roubles) (Reporting by Anastasia Teterevleva; Writing by Maria Kiselyova; Editing by Ruth Pitchford)
