Moscow, Russian Federation — July 7, 2004 — Mobile TeleSystems OJSC (“MTS” — NYSE: MBT), the largest mobile phone operator in Russia and Ukraine, announces that its consolidated subscriber base reached 22.78 million users on June 30, 2004.
During June 2004, MTS’ consolidated subscriber base on a net basis increased by 1.49 million subscribers, of which 270,000 were added in Moscow and the Moscow region.
Commenting on the results, MTS’ Vice President, Mikhail Susov, said: “The growth rate of mobile communications in Russia is impressive. In particular, growth in the Moscow mobile phone market, which is the most developed and competitive market in Russia, did not slow down this month despite the start of the summer season. MTS was the main driving force behind this growth with, once again, record new additions. Furthermore, the growth rate in neighboring countries, such as Ukraine and Belarus, is exceptionally high.”
At the end of June 2004 MTS completed its acquisition of the remaining 50% stake in Primtelefon. As the result of this transaction, MTS’ consolidated subscriber base grew by more than 215,000 thousand in the Far East and Siberia.
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June 30, 2004 |
May 31, 2004 |
Growth Subs |
Growth % |
June 30, 2003 |
Growth Subs |
Growth % |
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Total consolidated subscribers,
end of period (mln) |
22.78 |
21.29 |
1.49 |
7.0 |
11.34 |
11.44 |
100.8 |
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| Russia (mln) |
18.14 |
16.93 |
1.21 |
7.2 |
9.32 |
8.82 |
94.7 |
| Moscow and the Moscow region (mln) |
6.12 |
5.85 |
0.27 |
4.6 |
4.13 |
1.99 |
48.1 |
| St. Petersburg and the Leningrad region (mln) |
1.46 |
1.39 |
0.07 |
5.0 |
0.94 |
0.52 |
55.1 |
| Rest of Russia (mln) |
10.56 |
9.69 |
0.87 |
9.0 |
4.25 |
6.32 |
148.9 |
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| Ukraine (mln) |
4.63 |
4.36 |
0.28 |
6.4 |
2.02 |
2.61 |
129.1 |
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| Unconsolidated subsidiaries in Russia1 (thousand) |
11.5 |
200.4 |
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— |
— |
— |
— |
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| MTS Belarus2 (thousand) |
744.7 |
689.0 |
55.71 |
8.1 |
170.2 |
574.51 |
337.6 |
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| 1
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MTS owns 50% stakes in Volgograd Mobile and Astrakhan Mobile, local mobile operators in the Volga part of Russia. MTS does not consolidate these companies. |
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MTS owns a 49% stake in Mobile TeleSystems LLC, a mobile operator in Belarus, which is not consolidated.
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For further information contact:
Mobile TeleSystems, Moscow
Investor and Public Relations
Andrey Braginski
tel: +7 095 911 6553
e-mail: ir@mts.ru |
Mobile TeleSystems OJSC (“MTS”) is the largest mobile phone operator in Russia and Ukraine. Together with its subsidiaries, the Company services over 22.8 million subscribers. The regions of Russia, as well as Belarus and Ukraine, in which MTS and its subsidiaries are licensed to provide GSM services, have a total population of approximately 200.6 million. Since June 2000, MTS’ Level 3 ADRs have been listed on the New York Stock Exchange with the ticker symbol MBT. Additional information about MTS can be found on MTS’ website at www.mtsgsm.com.
Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of MTS, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify forward looking statements by terms such as “expect,” “believe,” “anticipate,” “estimate,” “intend,” “will,” “could,” “may” or “might,” and the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. We refer you to the documents MTS files from time to time with the U.S. Securities and Exchange Commission, specifically the Company’s most recent Form 20-F. These documents contain and identify important factors, including those contained in the section captioned “Risk Factors” that could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, potential fluctuations in quarterly results, our competitive environment, dependence on new service development and tariff structures, rapid technological and market change, acquisition strategy, risks associated with telecommunications infrastructure, risks associated with operating in Russia, volatility of stock price, financial risk management and future growth subject to risks.
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