Page 167 - RusRPTSept21

Consensus-beating results. EPAM’s 2Q21 revenues increased 39% YoY to USD 881mn, 2% above consensus and our forecast and exceeding the guided range of USD 853-861mn. This result reflected strong demand and the low base of last year, with additional support coming from acquisitions (added almost USD 19mn of revenues in 2Q21). Excluding the effect of these acquisitions, we estimate that the two-year organic revenue CAGR was 25% (26% including M&A), which is close to the historical average. The growth was broad-based across verticals and geographies.
Higher margins helped all key profit lines to grow above revenues. Non-GAAP operating income rose 43% YoY to USD 155mn, 7% and 3% above consensus and us, respectively. Non-GAAP diluted EPS rose 41% YoY to USD 2.05, 6% and 2% above consensus and our forecast, respectively (EPAM guided USD 1.88-1.95).
FY21 guidance increased. EPAM revised up its FY21 revenue growth guidance to 37% YoY (with 3% contribution from M&A and a 2% positive FX impact) vs. 29% YoY before. It also increased its non-GAAP operating margin guidance by 50bp to 17%- 18%. FY21 non-GAAP diluted EPS is now guided at USD 8.25-8.44 vs. USD 7.54- 7.76 before.
Russian business tycoon Said Gutseriev exited three crypto exchanges Currency.com, Capital.com and Zubr.io, making a $150mn return on the initial investment, Vedomosti daily reported on August 17 citing the reports of the companies and the representative of Russia's 80th richest man according to Forbes. Gutseriev is a son of Mikhail Gutseriev, the head of the Safmar Group, and a rising star in the business world as he controls a string of highly successful businesses. He started investing in crypto assets back in 2017, but exited in 2021. Mikhail Gutseriev is sanctioned by the EU and the UK as part of the new round of sanctions against Belarus launched in June and August 2021, respectively. However, the father has exited the Safmar Group which is entirely controlled by his son Said that remains unaffected by the sanctions so far.
9.2.8 Telecoms corporate news
Mobile TeleSystems (MTS) reported 2Q21 results on August 19. Revenues rose 10.6% y/y to R128.6bn, with the non-core segments combined (retail, fintech and media) posting revenue growth of 27.9% y/y to R33.9bn, according to management accounting. EBITDA expanded 10.2% y/y to R57.2bn (for a 44.5% margin, flat y/y) driven by both core telecom services and fintech (MTS Bank's EBITDA margin was up 35 pp y/y at 24.8%), but pressured by MTS's retail operations, where the sales mix shifted toward
167 RUSSIA Country Report September 2021 www.intellinews.com