Report on Mobile Retail in Russia, Q1 2011

Transcription

1 Mobile handset market in Russia, Q (MTS estimates) MTS estimates that during Q the sales of handsets in Russia in terms of the units sold increased by 20% compared to the same period of Around 8.7 mln devices were sold during the quarter. Mobile handset market in Russia, 000 s of units for Q In Q1 2011, the mobile retail market has expanded by 19% in sales compared to Q to reach 39.4 bln rubles. Mobile handset market in Russia, RUB bln for Q During Q1 2011, the average retail price of the handsets decreased by 1% compared to Q1 2010, but came in higher than the average price during rubles. The increase in the average price was realized on the back of rising sales of the medium-priced phones (5 000 to rubles) and premium handsets. Average handset price in Russia, RUB for Q1 2011

2 MTS mobile retail network, Q The market share of the MTS mobile retail network in terms of handsets sold (including wholesale sales) is estimated at 17.2% in Q The share of the MTS-branded handsets sold in the MTS retail network has increased from 10.7% in Q to 14.5% in Q The share of phones priced at under rubles constitutes 72.6% of total units sold during Q Phones priced from to rubles account for 19.8% of total units sold. High-end models, priced above rubles, account for 7.5% - an increase of 1.9 percentage points from Q Mobile handsets sales mix in the MTS mobile retail network, % of units Q % 1.6% Q % 3.7% Under RUB 23.0% 37.8% RUB 19.8% 29.7% RUB RUB Over RUB 33.6% 42.9% for Q In Q1 2011, the MTS-branded MTS 236 was again the most popular device sold through the MTS retail network, accounting for 6.3% of total units sold. This handset was the bestselling model in The Samsung E1080 and the Nokia 1280 in Q accounted for 4.6% and 4.1% of the units sold respectively. Top 5 most popular models in the MTS retail network during Q1 2011, % of total units sold Handset % of total sales МТS % Samsung E % Nokia % Nokia % Nokia %

3 Top 3 most popular models in different pricing categories in the MTS retail network during Q1 2011, % of total units sold <1 499 RUB RUB RUB > RUB МТS 236 Nokia 2700 Nokia 5230 iphone 4 16Gb Samsung E1080 Samsung C3300 Libre Nokia 5530 Nokia C7-00 Nokia 1280 МТС 635 QWERTY Nokia C5-00 Nokia N8-00 During Q1 2011, MTS and Nokia introduced the co-branded Nokia C5-03, a slim touchscreen smartphone. MTS has also launched the Samsung S5260 Star 2 (exclusively available in the MTS retail network), the HTC Incredible S, the Nokia C3-01 Touch and Type, the Samsung Galaxy and the low-budget MTS 252 model (priced at 639 rubles). Nokia C5-03 Samsung S5260 Star 2 HTC Incredible S MTS 252 Since the beginning of 2010, we have noted strong sales growth of notebooks and tablet PCs through the MTS retail network. Active sales of tablet PCs started in H and accelerated in Q In Q1 2011, the sales of tablet PCs have more than doubled compared with Q Though in Q the sales of notebooks and tablet PCs were seasonally high, Q saw an 18% increase. We anticipate the demand for notebooks and tablet PCs to grow further.

4 Notebook and tablet PC sales growth through MTS retail network, units sold In Q the volume of payments through the MTS retail network has increased more than 3-times compared to Q Customers can make payments for municipal services, traffic violations, pay TV, communications, home Internet access, as well as make money transfers across Russia and the CIS in all of the MTS stores. In Q2 2011, MTS plans to make more financial services available in its retail network. Growth of the volume of payments in the MTS retail network For further information, please contact in Moscow: Joshua B. Tulgan Director, Investor Relations Acting Director, Corporate Finance Department of Investor Relations Mobile TeleSystems OJSC Tel:

5 Learn more about MTS. Visit the official blog of the Investor Relations Department at Mobile TeleSystems OJSC ("MTS") is the leading telecommunications group in Russia, Eastern Europe and Central Asia, offering mobile and fixed voice, broadband, pay TV as well as content and entertainment services in one of the world's fastest growing regions. Including its subsidiaries, the Group services over million mobile subscribers in Russia, Ukraine, Uzbekistan, Turkmenistan, Armenia and Belarus, a region that boasts a total population of more than 230 million. Since June 2000, MTS' Level 3 ADRs have been listed on the New York Stock Exchange (ticker symbol MBT). Additional information about the MTS Group can be found at 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 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 undertake or 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, the severity and duration of current economic and financial conditions, including volatility in interest and exchange rates, commodity and equity prices and the value of financial assets; the impact of Russian, U.S. and other foreign government programs to restore liquidity and stimulate national and global economies, our ability to maintain our current credit rating and the impact on our funding costs and competitive position if we do not do so, strategic actions, including acquisitions and dispositions and our success in integrating acquired businesses, including Comstar-UTS, 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, governmental regulation of the telecommunications industries and other risks associated with operating in Russia and the CIS, volatility of stock price, financial risk management and future growth subject to risks.