Mobile TeleSystems (MTS) reported that its consolidated group revenue increased 8.4% year-on-year in Q3 2021 to reach RUB138.2 billion (USD1.9 billion) ‘on the back of growth in all key verticals: telecom, fintech, media, retail, and B2B cloud & digital solutions’. In 3Q21 group operating income before depreciation and amortisation (OIBDA) increased 4.2% y-o-y to RUB61.3 billion, with significant positive impacts coming from telecom and fintech services, as well as some tailwinds from international roaming amid a limited restoration of global travel during the ongoing COVID-19 pandemic. In the three months to 30 September Russian mobile service revenue increased 4.2% y-o-y to RUB89.1 billion, while quarterly Russian sales of handsets and accessories notched upward 4.7% y-o-y to RUB17.7 billion.
Group net profit in July-September 2021 decreased 12.5% y-o-y to RUB16.5 billion supported by core business performance and the MTS Bank division but constrained by higher depreciation and amortisation of fixed and intangible assets – reflecting MTS’ deliberate investment in network development and other areas – as well as an increase in financing costs versus the year-ago quarter due to higher net debt and an evolving interest rate environment, among other factors. For the first nine months of the year, net profit increased 3.2% y-o-y to RUB49.9 billion.
CEO Vyacheslav Nikolaev commented: ‘MTS continues to execute at pace on our long-term growth strategy … Crucially, more than half of the top-line upside came from segments beyond connectivity, further demonstrating the progress we are making on our journey to become a mobile-first tech company. We are also pleased that in September shareholders approved our strategic initiatives to separate our active and passive infrastructure into wholly-owned legal entities.’