Consolidated revenue of Sistema JSFC under IFRS decreased by 0.6% year-on-year in the first quarter of 2017 and amounted to 163.4 billion. Significant growth of sales of “Children’s world” compensated for the expected decline in the revenue of the Indian Telecom operator SSTL, which continues to work towards the integration of its business with Reliance Communications. Excluding SSTL Group revenue increased by 0.9% year-on-year in the first quarter of 2017, according to a press release from the company.
Commercial, administrative and management costs (KEUR) increased by 0.8% year-on-year to 37.3 billion roubles, mainly due to the growth of MTS retail network and increase the scale of business “Children’s world” while maintaining control over expenditures. Kyour the Corporate center decreased by 18.7% year-on-year to 1.6 billion. Costs depreciation, depletion and amortization increased by 4.7% year-on-year to 24.1 billion rubles.
In the reporting quarter, Group adjusted OIBDA increased by 3.2% year-on-year to 44.4 billion rubles. The growth of OIBDA MTS and “meds” more than compensated for the decrease of this index in SSTL. All key assets of the portfolio, except SSTL, showed a profit on OIBDA, despite the effect of seasonality of the first quarter. Adjusted OIBDA margin of the Group was 27.2% for the quarter, compared to 26.2% for the corresponding period in 2016.
Adjusted net profit in the proportion of AFC amounted to 1.6 billion rubles in the reporting period, compared with 2.2 billion in the first quarter of 2016. The decrease was in particular due to the reduction in financial income and income from exchange rate differences of MTS, as well as increase of depreciation and amortization in Segezha Group, says the company.