MTS reports 8.9% Q1 revenue rise

27 May 2020

In Q1 2020 Russia’s Mobile TeleSystems (MTS) saw group revenue increase by 8.9% year-on-year to RUB119.6 billion (USD1.7 billion) primarily driven by rising mobile service revenue, with other notable contributions coming from MTS Bank and higher sales of software, mobile handsets and accessories. Group adjusted OIBDA in Q1 increased 1.6% y-o-y to RUB51.5 billion supported by core business performance, with the growth rate moderated by a one-off real-estate transaction in the year-ago quarter. Group net profit increased 0.8% y-o-y to RUB17.7 billion in the three months to 31 March 2020. For full-year 2020 MTS forecasts group revenue growth of 0%-3% based on factors including: ‘a rational competitive environment’ in Russia; impact from mobile tariff adjustments in 1Q20; rising data consumption and weaker voice usage; impact from temporary store closures due to COVID-19; a drop in roaming due to declining travel amid the pandemic; and broader macroeconomic impacts from COVID-19.

Russia accounted for 98.7% (RUB118.1 billion) of MTS’ consolidated revenues in 1Q20, growing 8.3% y-o-y, while Russian adjusted OIBDA improved 1.4% y-o-y to RUB50.7 billion (98.4% of the group total). Russian mobile service revenue grew 6.9% y-o-y to RUB80.6 billion and revenue from MTS’ Russian fixed network operations increased 1.4% to RUB15.3 billion.

MTS has also disclosed the value of its acquisition in February 2020 of Russian multi-city fixed broadband/TV provider Zelenaya Tochka (Green Dot), paying RUB1.37 billion for a 51% controlling stake with a three-year call option to purchase the remaining 49% of Green Dot’s share capital.

Russia, Mobile TeleSystems (MTS)