Sistema revenue down 0.6% to 163.4 billion rubles in Q1, OIBDA up 3.2%
MOSCOW. June 5 (Interfax) - Sistema posted 163.4 billion rubles in consolidated revenue to International Financial Reporting Standards (IFRS) in Q1 2017, down 0.6% compared to the same period last year, the corporation said in a statement.
Sistema said that strong sales growth at children's goods retailer Detsky Mir offset decline in revenue from Indian telecommunications subsidiary SSTL, which was in line with expectations as the company continued to work towards the merger of its telecommunications business with Reliance Communications. Excluding SSTL, group revenue increased by 0.9% year-on-year.
Adjusted OIBDA rose 3.2% to 44.4 billion rubles. OIBDA margin totaled 27.2%, up from 26.2% in Q1 2016.
The statement said all consolidated assets were profitable on the OIBDA level with the exception of SSTL, despite the seasonally weak first quarter.
Adjusted net profit during the period declined 29.3% to 1.6 billion rubles, due to lower finance income, lower FX-gains at MTS and higher depreciation and amortization expenses at Segezha Group.
Sistema's Q1 revenue figures were in line with Interfax's consensus forecast. OIBDA figures exceeded analyst estimates which expected OIBDA of 43.1 billion rubles with margin at 26.4%.
Commercial, general and administrative expenses increased 0.8% to 37.3 billion rubles, reflecting growth of the retail network at MTS and Detsky Mir's expansion with a continued focus on cost discipline. SG&A at the corporate center decreased by 18.7% year-on-year to 1.6 billion rubles. Group depreciation and amortization expenses increased by 4.7% year-on-year to 24.1 billion rubles.
Consolidated net debt at the corporate center totaled 73.8 billion rubles on March 31, 2017.
Sistema's cash position at the corporate center amounted to 20.5 billion rubles as of March 31, 2017 compared to 13.5 billion rubles at the end of the fourth quarter of 2016.
In the first quarter of 2017, Sistema invested 6.3 billion rubles into existing and new assets.
