UPDATE 2-Russia's MTS optimistic as phone usage rises

* Phone usage grows despite recession

* MTS optimistic for H209 but cautious due to unemployment

* Posts $563 mln Q2 net profit, beating $541 mln market view

* Sales up in most local currencies and in dollars q/q

* NY shares up 0.5 pct, bucking market trend

(Adds CEO, analyst comments, share price, details)

By Maria Kiselyova

MOSCOW, Aug 11 (Reuters) - Russia's top mobile carrier MTS
(MBT.N) defied the region's dire economic situation with a rise
in sales and forecast-beating quarterly profit and said it was
moderately optimistic for the second half of 2009.

Revenue rose in most local currencies compared with the
first quarter and same period last year, which ran counter to
Russia's deep recession, MTS' Chief Executive Mikhail Shamolin
said.

Russia's economy contracted 10.9 percent in the second
quarter as the country has entered its first recession in a
decade, and rising unemployment, slower income growth and
limited access to credit have hit most consumers. [ID:nLB84099]

In Russia, its key market where it competes with the
country's no. two and three, Vimpelcom (VIP.N) and MegaFon,
sales rose 7 percent in roubles year-on-year and by 9 percent
against the previous quarter.

"The telecom sector overall stays pretty resilient because
the telecom and mobile product became such an integral part of a
consumer's basket that it stays in demand despite the economic
situation," Shamolin said in an interview with Reuters
Television.

Analysts agreed with the executive's rosy assessment.

"MTS' results support our optimistic view on the company's
fundamentals, confirming the sector's defensive nature as demand
for mobile services is still strong despite the crisis," Uralsib
analyst Konstantin Chernyshev wrote in a note.

But the company, which also has significant exposure to the
corporate segment, limited its expectations to "moderate
optimism" as it did not rule out a delayed decline in demand for
its services as laid off workers fail to find new jobs.

MTS' shares were up 0.5 percent at $43.70 by 1641 GMT in New
York, bucking an overall market decline.

BILLION IN POCKET

MTS, which services nearly 100 million subscribers in six
former Soviet Union states, reported net profit of $563 million
against a $541 million market view and a $57.7 million net loss
in the previous quarter.

The strengthening of the rouble resulted in a $198 million
foreign exchange gain against a $462 million forex loss in the
first quarter, and together with rising sales in local
currencies allowed it to return to profit in the April-June
period.

But in year-on-year terms, net profit was down 15 percent as
sales fell 23 percent to $2 billion because the rouble was still
weaker to the dollar than a year ago.

Due to the consolidation of low-margin retail businesses in
its results from February and March, MTS' margin on operating
income before depreciation and amortisation fell to 47.2 percent
from 51.2 percent a year earlier.

MTS also said it had accumulated $1.5 billion of cash by the
end of June, part of which it will use to fund the acquisition
of a 51 percent stake in fixed-line provider Comstar CMSTq.L.

"We will need to take some (loans to buy Comstar) but we
also have some cash on our balance so it will be eventually a
combination of own funds plus some borrowings," Shamolin said.

MTS has to redeem $520 million before the end of 2009 and at
least $933 million in 2010. Its total debt totals $4.6 billion.
(Additional reporting by Kyril Sukhotski and Alexander
Gelogayev; editing by Gilbert Kreijger)