Sistema-backed Russian service provider MTS had 2.9 million pay TV subscribers at the end of the second quarter, up from 2.6 million a year earlier.
MTS’s broadband based increased 15% year-on-year to reach 2.3 million. MTS posted second quarter revenues of US$3.1 billion (€2.4 billion), more or less flat year-on-year due to depreciation of the ruble. OIBDA was US$299 million, down 77.2%. Sistema’s Stream TV unit grew its subscriber base to 6.8 milllion, up 6.2% on the first quarter and 21.8% on last year.
However revenue declined by 10.4% to US$31 million, due in part to lower revenues from MTS subscribers as a result of changes in which the channels are aggregated.
In June, MTS and Sistema joined forces to develop and managing the multimedia content portal Stream.ru, formerly Omlet.ru. The pair signed a shareholders agreement with respect to the management of Stream LLC, which owns and manages Stream.ru. Sistema also contributed RUB496.1 million (€12.2 million) into Stream’s charter capital and will own a 55% stake in Stream, reducing MTS’ stake from 100% to 45%. Stream LLC will operate under the Stream brand and will be managed by Sistema’s subsidiary Sistema Mass Media OJSC.