The Board of Directors of Mobile TeleSystems OJSC scheduled an extraordinary general meeting for September 30, 2014 and recommended that the shareholders decide to pay RUB 6.2 per share of common stock (RUB 12.4 per ADR) in interim dividends based on the company's performance in H1 2014, the company informed.
Therefore, the company may pay a total of RUB 12.8 billion in this year's interim dividends.
The record date for the extraordinary general meeting of interest holders (both shareholders and ADR holders) is August 14. The Board of Directors has recommended that the dividend record date be October 14, 2014.
The optional payment of interim dividends as decided by the shareholders' meeting is provided for by the new medium-term dividend policy of MTS adopted in April 2013. The company's dividend policy assumes that the dividends depend on its free cash flow. The minimum amount payable as dividends in 2013-2015 will be equal to at least 75% of the free cash flow generated by MTS in the expired financial year under US GAAP standards or RUB 40 billion for the one-year period, whichever is the greater.
Earlier, MTS shareholders were paid RUB 10.8 billion in interim dividends for H1 2013. Taking into account the declared FY 2013 dividends (RUB 38.4 billion), the total amount paid as 2013 dividends was RUB 49.2 billion.
Mobile TeleSystems OJSC (MTS, tax number: 7740000076) and its subsidiaries provide services to about 100 million subscribers in Russia, Armenia, Belarus, Ukraine, and Turkmenistan. The company also provides fixed-line telephony and cable television services in all federal districts of Russia and in Ukraine.
The company's authorized capital is RUB 206.641 million, 2,066,413,562 common shares at par value of RUB 0.1 each are issued. Sistema JSFC owns a 50.8% stake in the company, 49.2% of the shares being in free float. 37.62% of MTS shares are traded on the NYSE as Level 3 ADRs.
US GAAP net profit of the MTS group for 2013 increased 2.7 times to RUB 79.84 billion from RUB 29.5 billion the year before. Consolidated revenue increased by 5% to RUB 398.4 billion from RUB 378.2 billion. Consolidated OIBDA grew by 8% to RUB 175 billion. US GAAP net profit of MTS for Q4 2013 grew by 16% to RUB 19.8 billion from RUB 17 billion the year before, consolidated revenue by 6% to RUB 104.8 billion. Consolidated OIBDA increased by 11% to RUB 45 billion, OIBDA margin by 1.8 p.p. to 42.9%.
RAS net profit of MTS for Q1 2014 grew by 55.8% to RUB 11.499 billion from RUB 7.379 billion the year before. Revenue increased by 9.7% to RUB 72.674 billion from RUB 66.238 billion, GP by 13.5% to RUB 35.871 billion from RUB 31.601 billion, pre-tax profit by 48% to RUB 14.447 billion from RUB 9.768 billion.