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. Last Updated: 07/27/2016

MTS Posts Q4 Loss on Writedown

Mobile TeleSystems on Wednesday posted a fourth quarter loss on a write-down related to its United Comstar TeleSystems unit.

The net loss was $26.1 million in the period, compared with a profit of $171.2 million in the fourth quarter of 2009, the company said in a statement. Revenue fell 3.3 percent to $2.72 billion.

MTS gained control of Comstar, a telecommunications and Internet company, for 39.2 billion rubles ($1.33 billion) in October. The company said it had write-downs of $368 million related to Comstar’s investment in Svyazinvest, the state-run holding for fixed-line telephone companies, and $86 million for outdated equipment.

Revenue this year will rise between 5 percent and 10 percent, helped by the forecast pace of economic growth in Russia and the former Soviet republics, CEO Mikhail Shamolin said Wednesday. The growing economy should boost mobile phone use, as well as sales of handsets and services such as mobile Internet, he said. In 2009, revenue declined 17.5 percent.