VivaCell-MTS announces results for the year 2014 and plans for 2015

VivaCell-MTS summed up the major accomplishments in 2014 and shared the Company’s plans for 2015.

In 2014, another challenging year for VivaCell-MTS, the Company has both managed to retain market leadership and to exceed previous achievements in different key directions. With further increase in the number of subscribers - 2.14 million as of December 31, 2014, the Company‘s telecom market share has become 60.5%.

By the end of the 2014, the number of the users of Internet over mobile device has reached over 1 million, thus giving the company a clear edge in the market share. The number of subscribers using broadband Internet (including access to Internet through wirelss devices such as USB modems and routers) is 82.7 thousand. In 2014, the Company accomplished its targets set for retail sales by offerering to the market a wide range of cutting-edge mobile devices from different manufacturers, at competitive prices. Revenues from mobile retail totaled over AMD 1 billion, by achieving a solid margin of 38.7% compared to the 2013.

Throughout 2014, VivaCell-MTS succeeded in meeting its key financial and operational targets, with the Company’s consolidated revenues totaling AMD 77.6 billion (over 61.6% market share), and with OIBDA of more than AMD 38 billion compared to AMD 36.8 billion in 2013, representing an OIBDA margin of 3%.

Last year VivaCell-MTS scaled up significant investment in its networks - AMD 12.6 billion.

The Company will continue expanding its infrastructure and will make further investment into it in 2015.

In 2014, VivaCell-MTS has further strengthened its capacity to provide its subscribers with access to new and innovative products and services. Thus, network upgrade works have been implemented all over the country in order to deliver the best network powered by state-of-the-art technology and increased capacity, a reliable platform for future new innovative applications and services, able to support the expected growth of data volume and quality in the years to come.

VivaCell-MTS is Armenia’s unsurpassed leader in terms of 2G base stations (1091), 3G (1091) and 4G (250) stations and respectively, mobile coverage: 2G network reaches 99.8%; in 2014 the Company’s modern 3G/3.5G network reached from 97% to 98%, and the 4G/LTE network reached from 36.6% to 45.7%, and in addition to Yerevan, Tsakhadzor, Dilijan, Vanadzor and Gyumri it also included Echmiadzin and Armavir. Only in 2014, 39 2G, 39 3G and 50 4G new base stations were installed.

In 2015 also, VivaCell-MTS activities will center on upgrading its 2G and 3.5G networks’ capacity and rolling out 4G/LTE to other towns of Armenia.

Throughout operation period, VivaCell-MTS has developed and shaped its own value system, formalized into core values. Innovation, leadership, best quality of network and customer service, affordability, and respect for the society as well as sustainability, are top priorities for VivaCell-MTS. “Core values unite us and make us faster, more efficient, more focused, more responsible, more transparent and closer to our customers,” VivaCell-MTS General Manager Ralph Yirikian told.

VivaCell-MTS is closely aligning its business performance with its commitment to society. In 2014 the Company directed its social investment activities towards different areas such as helping children, with particular focus on long-term health programs, preservation of culture and national identity, higher education, environmental awareness, and rehabilitation of rural infrastructure.

For 2015 as well, VivaCell-MTS has adopted very rigorous, highly focused social investment programs in the above-mentioned areas, which are the core yet not the whole broad range of activities implemented by VivaCell-MTS. From 2005 through 2014 AMD 22 billion were spent for social investment in the frames of Corporate Social Responsibility programs. For 2015, the Company has allocated AMD 1.9 billion. VivaCell-MTS is Armenia’s pioneer in the volume and scope of CSR.

“We believe in better future of Armenia – this slogan reflects our commitment to society and the environment. VivaCell-MTS focuses on long-term challenges by implementing and engaging programs of vital importance to the people of Armenia,” Ralph Yirikian added.

VivaCell-MTS ranks the second in the top taxpayers list of 2014, with AMD 28,891,812,140 (about AMD 28.9 billion). Overall, starting from 2005 when VivaCell-MTS entered the market, the Company has paid AMD 185,937,423,240 (about AMD 186 billion) to the state budget.