Mobile TeleSystems OJSC's (MTS) ADR achieved our target price on 01 June 2009, closing at US$44.30, reflecting a revival in Russian equity markets. Going forward, we expect robust growth in Russian Average Revenues Per User (ARPU) to drive MTS's top-line growth. Furthermore, we expect general & administrative expenses to decline as a result of several cost reduction initiatives such as the renegotiation of rental contracts and reduction in headcount....

Going forward, we expect revenues to decline in FY 2009 due to an expected decline in Average Revenue Per User (ARPU) from all operations, partially offset by an increase in subscriber-base. Furthermore, MTS do not anticipate any increase in tariffs as it would result in an increase in churn rate and decline in traffic. As a result, we do not see MTS loosing out its market share, despite intense competition....

Mobile TeleSystems OJSC (MTS) posted mixed 4Q 08 results. Revenues and EBITDA were below our estimates, while operating income and adjusted1 net income were above our estimates in 4Q 08. In 4Q 08, revenues were primarily impacted by the devaluation of Russian ruble against the US dollar (13% depreciation in the ruble), resulting in lower y-o-y growth during 4Q 08, compared to the previous 3 quarters. Going forward…