9 Dec 2009 14:11

Sistema boosts net profit 102.2% to $202 mln in Q3

MOSCOW. Dec 9 (Interfax) - AFK Sistema boosted net profit 102.2% in the third quarter of 2009 year-on-year to $202 million under US GAAP.

The net profit is adjusted for a gain from the acquisition of the Bashkir oil and energy assets and a loss from non-recurring write-offs, the company said in a statement.

Without the adjustment, net profit increased 16-fold in the quarter to $1.684 billion.

Revenue increased 21% to $5.335 billion. OIBDA totaled $3.172 billion, 88.4% more year-on-year. Adjusted OIBDA was up 22.1% compared with Q2 2009 to $1.5 billion, but fell 11.6% year-on-year. The OIBDA margin declined to 27.9% from 38.2%.

These figures proved better than the consensus forecast, which called for net profit to total $189.6 million, revenue $5.239 billion, and OIBDA $1.456 billion.

Revenue rose 21% to $5.335 billion; OIBDA was up 88.4% to $3.172 billion. Adjusted OIBDA increased 22.1% from Q2 to $1.5 billion (11.6% down from Q3 2008).

The OIBDA margin dropped to 27.9% from 38.2%.

Not only were the figures better than the consensus forecast for net profits ($189.6 million), but they also surpassed revenue expectations ($5.239 billion) and OIBDA ($1.456 billion).

Non-telecommunications (including Sistema's fuel and energy segment) represented 50.9% of consolidated earnings (25.5% for Q3 2008, 43.9% for Q2 2009).

Operating profits soared 132.6% to $2.49 billion, while adjusted operating profits were down 24.7% year-on-year at $806.2 million. The adjusted operating profit margin dropped from 24.3% to 15.1%.

Interest expenditures rose to $360.0 million from $154.7 million in Q3 2008, mainly a result of increased overall debts.

Cash flow from company operations was down 16.6% at $926.3 million from Q3 2008, but was up 49.4% from Q2, mostly on the strength of steady operating activity.

Cash flow from the company's financial operations totaled $3.226 billion against negative $163.5 million of Q3 2008, and against Q2's $3.413 billion.

Cash funds stood at $5.549 billion as of September 30, 2009, more than double the $2.543 billion figure of June 30. The group's net debts stood at $10.6 billion on September 30 versus the $10.3 billion of June 30.

Group capex in Q3 dropped to $864.6 million from the $999.9 million of Q3 2008, but was up from the $829.2 million of Q2. The company spent $39.6 million in Q3 on the acquisition by Mobile TeleSystems of the Uzbek advertising agency Kolorit.