Mobile Telesystems' Third-Quarter Revenue Soars

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Mobile Telesystem's (MBT Quote) Q3 FY08 total revenue grew 26.9% to $2.81 billion from $2.22 billion in Q3 FY07, driven by subscriber additions, rising voice traffic and VAS adoption. Services and connection fees revenue rose 27.4% to $2.80 billion from $2.20 billion a year ago. Meanwhile, sales from the handsets and accessories posted a decline of 24.4% to $15.44 million from $20.44 million. Total consolidated subscribers advanced 12.3% to 87.57 million from 77.97 million a year ago, mainly due to higher subscriber additions in Russia and Uzbekistan.

Geographically, in Russia, the average monthly revenue per subscriber (ARPU) grew 12.8% to $11.50 and subscriber acquisition costs per additional subscriber (SAC) spiked 7.4% to $26.10. Further, the churn rate rose to 9.1% from 7.1%. In Ukraine, ARPU ascended to $8.20 from $7.30 a year ago, while SAC slipped 5.5% to $10.30. The churn rate in Ukraine deteriorated to 15.8% from 12.5% a year ago. In Uzbekistan, ARPU decreased to $7.30, while SAC jumped 75.0% to $7.70 and the churn rate improved to 7.3%. In Turkmenistan, ARPU decreased 82.3% to $10.00, while SAC fell 73.6% to $5.50. The company's mobile penetration rate in Russia, Ukraine, Uzbekistan, Turkmenistan, Armenia and Belarus climbed to 124.0%, 120.0%, 38.0%, 16.0%, 80.0% and 83.0% respectively. MBT's market share plummeted to 35.0%, 33.0% and 69.0% in Russia, Ukraine and Armenia, respectively. In Uzbekistan and Belarus the company maintained its 49.0% and 52.0% market share, respectively, while in Turkmenistan it increased to 87.0%. ...