Net income down 68%
Russian mobile communications provider Mobile TeleSystems has reported net income of $145.5m in the fourth quarter of 2008, a decrease of 68.4% compared to $460.3m in the same quarter of 2007.
For the fourth quarter of 2008, net operating income was $706.2m, an increase of 9.7% compared to $643.8m in the same quarter of 2007. Revenues for the fourth quarter of 2008 were $2.42 billion, an increase of 4% compared to $2.33 billion in the corresponding quarter of 2007.
For the full year 2008 net income was $1.93 billion, a decrease of 6.8% compared to $2.07 billion in 2007. Net operating income for 2008 was $3.2 billion, an increase of 17.2% compared to $2.73 billion in 2007. Revenues for 2008 were $10.24 billion, an increase of 24.2% compared to $8.25 billion in 2007.
Mikhail Shamolin, president and CEO of Mobile TeleSystems, said: The current economic weakness and currency volatility, as evident by decreased corporate spending and overall business activity in our markets, may negatively impact our short-term financial and operational performance. However, our pro-active marketing initiatives will strengthen customer loyalty, and sustained investments in distribution and 3G, facilitated by our relatively strong financial position, will ensure that we continue to provide the best customer experience and enhance overall customer lifetime value in the medium- and long-term.