MTS revenues up 2.1%; cellular base up 0.4% q-o-q, down 0.5% y-o-y

15 Nov 2017

Russia’s Mobile TeleSystems (MTS) has posted consolidated revenue of RUB114.6 billion (USD1.9 billion) in the third quarter of 2017, up by 2.1% year-on-year, of which RUB106.3 billion (92.8%) was accounted for by Russian operations. Adjusted EBITDA rose 6.7% y-o-y in Q3 2017 to RUB48.8 billion, of which the lion’s share, RUB46.6 billion, was earned in Russia. CAPEX spent in July-September 2017 reached RUB22.3 billion (22.9% higher than in 3Q16), whilst quarterly group net profit improved 43% y-o-y to RUB18.0 billion. Total mobile subscriber accounts stood at 108.3 million at 30 September 2017, up 0.4% quarter-on-quarter although down by 0.5% y-o-y. Russian MTS cellular subscriptions reached 78.5 million (up 0.6% q-o-q, down 0.7% y-o-y), with the Ukrainian (Vodafone-branded) customer base dropping slightly (0.1% both q-o-q and y-o-y) to 20.8 million. VivaCell-MTS (Armenia) reported 2.1 million mobile customers (up 1.5% q-o-q), whilst MTS Belarus’ mobile subscriber total climbed 1.2% in three months to 5.2 million at end-September 2017.

Adding a note on the recent shutdown of subsidiary MTS Turkmenistan, the group wrote that from 29 September 2017 ‘MTS stopped providing communication services in Turkmenistan due to the actions of the state-owned telecommunication company Turkmentelekom, which resulted in the disconnection of international and long-distance zonal communication services and internet access. The Group posted RUB1.1 billion of impairment of non-current assets in Turkmenistan in Q3 2017.’