Sistema cuts Q2 earnings 11.2% to $246 mln, as forecast
MOSCOW. Sept 17 (Interfax) - The Sistema holding saw its net profit to US GAAP fall 11.2% year-on-year in the second quarter to $246.2 million, the company said in a statement.
Net profit was $277.3 million in Q2 2008.
Sales revenue grew 3.1% to $4.24 billion, OIBDA fell 20.3% to $1.196 billion (from $1.5 billion a year ago) and the OIBDA margin fell to 28.2% (from 36.5%).
The results were in line with forecasts by analysts, who predicted net profit of $240 million, revenue - $4.2 billion and a profit margin of 28.3%.
The results were influenced by the consolidation of fuel and energy companies in Bashkortostan (Oil & Energy Business Unit) in April, which added $1.17 billion to revenues, and, by virtue of this, business units from outside the telecommunications segment accounted for 43.8% of Sistema's overall revenue in Q2 2009, compared with 24.4% in Q2 2008 and 20.2% in Q1 2009.
Selling, general and administrative expenses increased by 1.6% year on year and by 38.6% quarter on quarter to $886.1 million mainly due to the consolidation of the Oil & Energy business unit.
Depreciation and amortiZation expense decreased by 7.0% year on year while it rose by 23.5% quarter on quarter.
The Group interest expense was $260.8 million in the second quarter, compared to $101.5 million and $192.6 million in the second quarter of 2008 and the first quarter of 2009 respectively, mainly due to the increase in total debt and an average interest rate.
The Group generated net income attributable to Sistema of $246.2 million in the second quarter, compared to net income of $277.3 million in the corresponding period of 2008 and a net loss of $395.5 million in the first quarter of 2009.
Net cash provided by operations decreased by 22.9% year on year and 28.7% quarter on quarter to $620.1 million mainly due to changes in the working capital.
Net cash used in investing activities totaled $3.03 Billion in the second quarter of 2009, with $829.2 million spent on capital expenditure, compared to $1.1 billion in the second quarter of 2008 and $872.7 million for the first quarter of 2009.
The Group spent $1.534 billion, net of cash received on the acquisition of businesses in the second quarter, which represents purchase of shares in oil exploration and processing companies in the Republic Bashkortostan. The Group also spent $41.5 million in the second quarter of 2009 on purchase of additional shares in its subsidiaries, namely Dagtelecom and K-Telecom.
Net cash provided by financing activities amounted to $3.4 billion in the second quarter, compared to $1.577 billion and $110.5 million in the second quarter of 2008 and the first quarter of 2009 respectively.
The Group's cash balances stood at $2.543 billion as at June 30, 2009, compared to $1.42 billion as at March 31, 2009. The Group's net debt (short-term and long-term debt less cash and cash equivalents) amounted to $10.334 billion as at June 30, 2009, compared to $7.951 billion March 31, 2009.