Profit at Russia’s Sistema drops by a third as exchange rates bite
RUSSIAN oil-to-telecoms holding company Sistema reported a 33 per cent fall in first-quarter net profit due to a smaller foreign exchange gain yesterday.
Net profit fell to $97.2m (£59.7m), while net profit before one-offs rose 30.5 per cent to $102.3m.
The company said sales rose 25.8 per cent to $7.8bn, driven by mid-size oil asset Bashneft and Russia’s top mobile phone operator MTS.
Operating income before amortisation and depreciation rose 13 per cent to $1.85bn, said Sistema, which also owns banking, retail, healthcare and defence assets.
“Our solid financial position and our stable portfolio mean that Sistema is well placed to focus on new M&A opportunities,” chief executive Mikhail Shamolin said.