MTS records slight y-o-y turnover rise in Q2; OIBDA falls 9.2%

19 Aug 2022

Russia’s Mobile TeleSystems (MTS) reported that group revenues increased by 0.7% year-on-year to RUB127.8 billion (USD2.1 billion) in Q2 2022, of which Russian operations accounted for RUB126.0 billion (up 0.6%), driven primarily by growth in core connectivity services as well as at Fintech and other divisions, offsetting a decline in sales of handsets and accessories. Group adjusted operating income before depreciation and amortisation (OIBDA) fell by 9.2% y-o-y to RUB51.8 billion in April-June, as positive contributions from telecom and media services were offset by ‘MTS Bank provisions, inflated due to the more challenging macroeconomic conditions during the first half of 2022.’

Group net profit totalled RUB10.9 billion in the first three months of the year, down by 36.4% versus the year-ago period, under pressure from: ‘increased financing costs amid a higher interest rate environment; greater MTS Bank provisions in the current macroeconomic conditions; higher level of depreciation and amortisation reflecting recent CAPEX intensity.’ Second-quarter group cash capital expenditures amounted to RUB22.0 billion, representing a decrease of 14.6% compared with the same period of last year, largely due to restrictions imposed on purchases of network equipment in 2022.

Russia, Mobile TeleSystems (MTS)