Russia's MTS cuts full-year targets due to Ukraine

MOSCOW Wed Aug 20, 2014 7:02am EDT

MOSCOW Aug 20 (Reuters) - Russia's biggest mobile phone operator MTS cut its full-year sales and core profit forecasts on Wednesday, citing instability in Ukraine, its second-biggest market.

MTS cut its revenue growth target to "more than 1 percent" from the earlier 3-5 percent range and said it now expects operating income before depreciation and amortisation to be flat year-on-year, having previously forecast a 2 percent increase.

The company reported a 1.4 percent increase in second-quarter revenue to 98.9 billion roubles ($2.7 billion), slightly below analysts' forecast of a 1.7 percent rise.

Its quarterly OIBDA fell 2.6 percent to 43.2 billion roubles, in line with expectations, due to the hryvnia's devaluation and a one-off gain a year ago which also led to net profit falling 27 percent to 21 billion roubles. (1 US dollar = 36.2620 Russian rouble) (Reporting by Anastasia Teterevleva; Writing by Maria Kiselyova; Editing by Jason Bush)

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