AFK Sistema sees Q1 OIBDA fall 3.7% to $1.89 bln, as forecast
MOSCOW. June 3 (Interfax) - AFK Sistema's adjusted operating income before depreciation and amortization (OIBDA) fell 3.7% year-on-year in Q1 2014 to $1.894 billion, the oil-to-telecoms conglomerate said in a press release.
This was more or less level with the $1.893 billion that analysts predicted in a consensus forecast for Interfax.
The adjusted OIBDA margin fell to 23% in Q1 this year, from 23.6% in the same period of last year. The analysts forecast 23.1%.
Net profit to US GAAP grew 3.5% year-on-year to $363.3 million, below a forecast $377 million.
Sistema's consolidated revenue fell 1.6% to $8.215 billion. Analysts had expected this figure to fall to $8.2 billion.
Operating profit was up 0.1% at $1.156 billion.
"Despite a challenging macro environment, we generated double digit year-on-year growth in ruble terms across our businesses in the first quarter of 2014. The resilience of Sistema's business model helped deliver a 13.1% year-on-year increase in consolidated revenues in ruble terms, and a 10.7% growth in OIBDA," Sistema President Mikhail Shamolin is quoted in the press release as saying.
"In the first quarter of 2014, Sistema's consolidated revenues declined by 1.6% year-on-year in US dollar terms as a result of Russian ruble depreciation. The Group's revenues were up 13.1% year-on-year in ruble terms, reflecting increasing volumes of oil production and refining at Bashneft , the development of MTS' data services and Detsky Mir's business expansion. The top-line growth in ruble terms also reflects significant contributions from Bashkirian Power Grid Company ("BPGC") following increased electricity consumption, rise of MTS Bank's interest and commission income and from increased patient visits at Medsi," the company said.
Net cash provided by operations was up 34.7% at $1.591 billion due to changes in working capital.
"Net cash used in investing activities totaled $1.51 billion in the reporting quarter, compared to $589.8 million in the corresponding period of 2013. This year-on-year increase in the investing cash outflow was mainly due to payments for purchases of businesses, net of cash acquired. In particular, in March 2014, the Group acquired a 100% interest in
Burneftegaz, a company engaged in exploration and production of crude oil in the Tyumen District, for a total cash consideration of approximately $1 billion," the press release says.
"Capital expenditures in the first quarter of 2014 slightly decreased year-on-year and amounted to $655 million, compared to $680.9 million in the corresponding period of 2013. The 28.2% reduction in capital expenditures at MTS was partially offset by Bashneft's growing investment program in connection with developing the Trebs and Titov fields," Sistema said.
"Net cash inflow from financing activities amounted to $744.8 million in the first quarter of 2014, compared to cash outflow of $257.1 million in the corresponding quarter of 2013. Net cash inflow from financial activities in the reporting quarter of 2014 was largely due to the increase in the Group's proceeds from short-term and long-term borrowings ($2.135 billion compared to $1.368 billion in the first quarter of 2013) and the decrease in the principal payments on long-term borrowings ($388.6 million compared to $1.323 billion in the first quarter of 2013)," the company said.
Sistema's long- and short-term debt less cash and cash equivalents and highly liquid deposits totaled $11.874 billion versus $13.428 billion a year prior.
