MTS announced its Q2 2010 financial results posting 38.7% drop in net profit at $ 354 million when compared to net profit of $ 577.4 million during corresponding quarter last year.

Total revenues were at $ 2.77 billion at 16.6% growth.

MTS has also raised its full-year sales guidance to 10 percent on the back of higher voice and data usage.

"Given our growth in the first half of 2010 and more positive economic sentiment, we feel confident to raise our guidance for MTS Group to roughly 10 per cent for 2010," MTS President and CEO Mikhail Shamolin said.

MTS said it continues to see downward pressure on margins from retail operations in Russia, but is witnessing "good seasonal trends in rising voice and data usage, healthy contribution from handsets sales and consumption of higher-value products like voice and data roaming and long distance."