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Telecom
June 2019 www.intellinews.com I Page 20
Furthermore, the tax provides no selective advantage to companies with lower revenue that would be incompatible with rules on state support, she added. "Different taxation arising from a progressive rate does not constitute an indirect restriction of freedom of establishment.
"This applies even where, in the case of turnover- based income taxation, larger undertakings
are taxed more heavily and they are owned de
facto predominantly by foreign shareholders.
The situation could be different only if conduct constituting an abuse of rights can be proven in respect of the Member State. That is not the case here," Kokott said.
The opinion of the advocate general does not bind judges of CJEU but experience has shown that the final ruling is mostly in line with the preliminary resolution.
T-Mobile in Czech Republic saw growth of CZK6.7bn in 1Q19
One of Russia's "big four" mobile operators Mobile TeleSystems (MTS) posted 14% year-on- year net profit growth for the first quarter of 2019. The bottom line was supported by organic growth, the consolidation of MTS Bank, and a real estate deal in Russia for an undisclosed amount.
Previously in the fourth quarter MTS posted solid results in both Russian and Ukraine, and pleased the market with dividend guidance promising over 10% dividend yield.
In 1Q19 in Russia MTS posted revenue growth of 8%, out of which mobile service revenue increased 1.5%, sales of goods (incl. handset sales) were up 7%. Ebitda in Russia grew by 4% making a 47% margin. In Ukraine, revenues and Ebitda jumped by 19% in local currency terms.
MTS 1Q19 IFRS results review, Rb bn
Net margin 14% 12% -29% 11%
Overall revenues grew by 9% y/y (6pp contribution from MTS Bank consolidation), while Ebitda gained 6% to 47% margin and came in 3% above the expectations of BCS Global Market.
"All in all, results look in line/slightly above expec- tations," BCS GM commented, expecting some clarity on the real-estate one-off from the confer- ence call. The company also improved its Ebitda growth guidance for 2018 now expecting "flattish" growth previous versus previous “slight decline”.
As reported by bne IntelliNews, in March
MTS agreed to pay a $850mn fine to the US Department of Justice (DOJ) to settle a case connected to bribes the company paid to the now jailed Gulnara Karimova, the daughter of Uzbekistan's former president Islam Karimov.
1Q18
2Q18
3Q18
4Q18
1Q19
Y/Y
Q/Q
BCS
Act vs
Con s-s
Act vs
Revenues
107.93
114.35
127.96
130.06
118.00
9%
-9%
118.39
0%
117.79
0%
Adjusted EBITDA
52.13
53.89
59.30
55.61
55.30
6%
-1%
53.77
3%
53.72
3%
Adjusted EBITDA margin
48%
47%
46%
43%
47%
-1ppts
4ppts
45%
-
46%
-
Net income
15.42
14.28
-37.02
14.76
17.60
14%
19%
15.54
13%
14.09
25%
15% 1ppts 4ppts 13% - 12% -
Source: Company data, BCS GM. Consensus - Interfax.