Page 136 - RusRPTJun21

9.1.8 Telecoms sector news
Mobile TeleSystems (MTS) released 1Q21 IFRS results on May 18. The results were decent with a 2-4% beat on the EBITDA line.
· Revenue grew 5% y/y (to Rb124bn) mostly thanks to continuing growth in mobile service revenue (+2%; technical q/q deceleration on timing of tariff increase, roaming loss, factor of 2019 being a leap year) and jump in handset sales (+16%; on the back smartphone market growth)
· EBITDA increased 7% (to Rb55.4bn; 45% margin), also helped by 1Q20 seeing COVID-related provisions at MTS bank (not so for this year), we believe. Net income declined 9% (to Rb16.2bn) – up 25%, excluding the impact from FX gains/losses thanks to greater EBITDA
· FCF after leases excluding Bank stood at Rb7bn – down c50% y/y on higher CapEx (Rb29bn; + 45% y/y).
· Guidance 2021 was reiterated: revenue and EBITDA up 4%+; CapEx at Rb100-110bn.
Conference
· In mobile services, growth should accelerate from 2Q21, as
Call – Focus Points:
136 RUSSIA Country Report June 2021 www.intellinews.com