AFK Sistema (SSA), billionaire Vladimir Yevtushenkov’s holding company, reported a first-quarter loss after the ruble’s decline against the U.S. currency inflated the value of its dollar-denominated debt.
The net loss was $395.5 million, compared with net income of $398.7 million a year earlier, the Moscow-based company said in a statement today. Sales fell 24 percent to $2.77 billion.
Sistema, whose holdings range from telecommunications to retail, real estate and tourism, recorded a foreign-exchange loss of $437.5 million after the Russian currency lost 14 percent against the dollar in the quarter. Net debt rose to $7.95 billion from $7.55 billion at the end of December.
“We have considerably restructured Sistema’s debt and optimized administrative and general expenses,” Chief Executive Officer Leonid Melamed said in the statement.
Operating income before depreciation and amortization fell 39 percent to $869.4 million. Profitability on that basis narrowed by 7.4 percentage points to 31.4 percent of sales.
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