Moscow, Russian Federation — September 6, 2004 — Mobile TeleSystems OJSC (“MTS” — NYSE: MBT), the largest mobile phone operator in Russia and the CIS, announces that its consolidated subscriber base reached 25.54 million users on August 31, 2004.
During August 2004, MTS’ consolidated subscriber base increased by 1.43 million subscribers. The growth was due to continuing dynamic development of the Company’s business, as well as the consolidation of Volgograd Mobile and Astrakhan Mobile (around 10 thousand users in Russia) and Uzdunrobita (around 0.24 million users in Uzbekistan).
Commenting on the subscriber growth numbers, MTS’ Vice President and Chief Marketing Officer, Mikhail Susov, said: “In August MTS’ subscriber base reached two symbolic milestones — more than 20 million subscribers in Russia and more than 5 million in Ukraine. We introduced a range of new marketing programs aimed at attracting new subscribers and increasing customer loyalty. For example, in Russia we offered a 50% discount on calls to subscribers who sign an annual contract and launched a number of unique location-based services.”
| (mln subscribers) |
Aug. 31, 2004 |
July 31, 2004 |
Growth Subs |
Growth % |
Aug. 31, 2003 |
Growth Subs |
Growth % |
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| Total consolidated subscribers, end of period |
25.54 |
24.12 |
1.43 |
5.9% |
12.95 |
12.59 |
97.3% |
|
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| Russia |
20.03 |
19.16 |
0.88 |
4.6% |
10.60 |
9.43 |
88.9% |
| Moscow and the Moscow region |
6.53 |
6.35 |
0.19 |
2.9% |
4.39 |
2.15 |
49.0% |
| St. Petersburg and the Leningrad region |
1.57 |
1.52 |
0.04 |
2.9% |
1.01 |
0.55 |
54.4% |
| Rest of Russia |
11.93 |
11.29 |
0.64 |
5.7% |
5.20 |
6.73 |
129.4% |
|
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| Ukraine |
5.27 |
4.96 |
0.31 |
6.2% |
2.35 |
2.92 |
124.4% |
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| Uzbekistan |
0.24 |
— |
— |
— |
— |
— |
— |
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| MTS Belarus1 |
0.90 |
0.82 |
0.08 |
9.5% |
0.25 |
0.64 |
255.8% |
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| 1
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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 the CIS. Together with its subsidiaries, the Company services over 25.5 million subscribers. The regions of Russia, as well as Belarus, Ukraine and Uzbekistan, in which MTS and its subsidiaries are licensed to provide GSM services, have a total population of approximately 225.8 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/A. 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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