OAO Mobile TeleSystems (MBT) slipped to a two-week low in U.S. trading as the company said revenue growth will slow over the next four years.
American depositary receipts of Russia’s biggest mobile operator, known as MTS, retreated 1.8 percent to $17.74 in New York, the lowest level since Feb. 22, based on closing prices. The stock earlier declined as much as 2.5 percent to $17.61.
The Moscow-based company expects revenue to probably climb 5 percent to 7 percent through 2015, after gaining 9 percent last year to $12.3 billion, Chief Executive Officer Andrei Dubovskov said today. Fourth-quarter revenue slid to $2.98 billion from $3 billion a year earlier, Dubovskov said.
“Investors may see the annual revenue growth forecast as conservative and think that this is not positive news,” Victor Klimovich, an analyst at VTB Capital in Moscow who recommends buying the stock, said by phone. “MTS wants to be on the safe side in its forecast. They cautiously look ahead, in case the competition increases.”
MTS (MTSS) was little changed at 227 rubles, or the equivalent of $7.67, on Russia’s ruble-denominated Micex Index. One ADR is equal to two ordinary shares.
To contact the reporter on this story: Ksenia Galouchko in New York at email@example.com
To contact the editor responsible for this story: Emma O’Brien at firstname.lastname@example.org