Nov. 21 (Bloomberg) -- OAO Mobile TeleSystems, Russia’s largest mobile-phone operator, reached the lowest level in six weeks in New York after reporting third-quarter earnings fell on increased market competition.
American depositary receipts of Moscow-based MTS fell 0.3 percent to $13.91 at the close of trading in New York after declining as much as 4.9 percent to $13.27, the lowest intraday level since Oct. 7. The company said today net income in the three months to Sept. 30 slid 25 percent to $362 million.
If competition stabilizes, the entire market will benefit, Alexey Kornya, MTS’ chief financial officer, said in a statement issued by PR Newswire.
“The main concern is tough market competition,” Anna Lepetukhina, an analyst at Troika Dialog, which has a “buy” recommendation on MTS shares, said in a phone interview today from Moscow. “Due to the competitive market landscape among Russian mobile service providers, over several quarters we’ve been seeing deteriorating financial results among mobile service operators.”
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