MTS announced its financial results for the second quarter ended on 30 June 2008. MTS-Uzbekistan (Uzdunrobita) is a 100% subsidiary of MTS.

The company said net income of MTS-Uzbekistan made up U$40 million in the second quarter of 2008 compared to US$17 million in the same period of 2007 (130% up).

The capital expenditure of the company rose by 290% to US$39 million, which makes up 42% of revenue.

Second quarter OIBDA increased by 57% year-on-year to US$58 million, while OIBDA margin made up 61.9%.

Operating income before depreciation and amortization (OIBDA) represents operating income before depreciation and amortization. OIBDA margin is defined as OIBDA as a percentage of net revenues.

The MOU increased sequentially from 549 minutes in the second quarter 2007 to 575 minutes in the reporting period. Average monthly minutes of usage per subscriber (MOU) is calculated by dividing the total number of minutes of usage during a given period by the average number of our subscribers during the period and dividing by the number of months in that period.

ARPU decreased sequentially from US$10.4 in the second quarter of 2007 to US$7.8 in January-June 2008. Average monthly service revenue per subscriber (ARPU) is calculated by dividing service revenues for a given period, including interconnect and guest roaming fees, by the average number of our subscribers during that period and dividing by the number of months in that period.

SAC increased sequentially to US$7.5 in the second quarter of 2008 against from US$3.7 in the same period of 2007. Subscriber acquisition cost (SAC) is total sales and marketing expenses and handset subsidies for a given period. Sales and marketing expenses include advertising expenses and commissions to dealers. SAC per gross additional subscriber is calculated by dividing SAC during a given period by the total number of gross subscribers added by us during the period.

MTS’ expenditure on property, plant and equipment in the third quarter totaled US$19 million in Uzbekistan.

The company said that its Uzbek subsidiary added 0.8 million new users in the second quarter, but it added that its market share fell from 52% to 49%. According to estimates of the company, the mobile penetration in Uzbekistan increased from 25% to 33%.