Page 16 - bne_Tech_06_2020

Telecom
June 2020 www.intellinews.com I Page 16
BCS Global Markets on May 26 noted that Ebitda growth was moderate due to a high base and positive one-offs for the same quarter of last year, estimating the growth at 6% y/y adjusted for that. Net income was flat as a sizeable FX gain in 1Q20 offset income from a sold Ukrainian unit in 1Q19.
While MTS continued to grow, the revenues from the consolidated MTS Bank increased by a solid 32% on the expansion of the loan portfolio, BCS GM believes that MTS booked some provision amid the worsened macro environment and increased cost of risk, and anticipates more provisions in 2Q20.
Sales of devices and software grew 19% y/y, supported by customers accelerating purchases in March, while the company continued to optimise its monobrand chain store count in 1Q20 (cutting 170 stores quarter on quarter, down 6% y/y).
Strong results and a significant acceleration in mobile service revenue growth in 1Q20 should help MTS mitigate pressure in the challenging second quarter, BCS GM believes while affirming the Buy recommendation on the name with a target price of RUB350 per share and $8.9 per GDR.
Unlike other telecom majors, MTS did not withdraw its guidance for 2020, which BCS GM sees as general confirmation of the business’ resilience. MTS also confirmed its commitment to at least RUB28/share 2020 dividend (8.5% yield).
Guidance for 2020 was slightly adjusted down
to 0-3% revenue growth and -2%-flat Ebitda (vs respective +3% and flat previously), and investment maintained at RUB90bn (19% of revenue).
Telekom Slovenije to set up 5G test network at Luka Koper
Telekom Slovenije announced it will establish a 5G test network for port operator Luka Koper to explore solutions for process optimisation in the logistics field.
The project will be co-financed by the EU’s Horizon 2020 programme, which is the bloc’s key 2014-2020 research and innovation multi-billion fund.
Telekom Slovenije and Internet Institute are participating in the EU’s 5G-LOGINNOV project among 15 partners from several European countries. The project is focused on the development of innovative solutions in the industrial logistics.
“As part of the project, Telekom Slovenije will establish a 5G development and test network in the area of the Port of Koper,” the company said on May 18.
Similar solutions will be tested by other project partners in the ports of Hamburg and Piraeus Through Horizon 2020, the European Commission
will provide about €6mn for the project in Slovenia. All 15 partners will invest a total of €8mn.
The project is expected to be completed in September 2023.
In the Port of Koper, a modern 5G network will be used to test user experiences in the field of port security, improvement of operational processes and environmental protection. The system will enable better coverage of the area and faster transfer of larger amounts of data, such as video and photo material.
On May 19, Telekom Slovenije said that it set up a 5G test network at local ICT provider Iskratel's production plant in Kranj.
“The results of the measurements show that the radiation exposure at all measuring points is far below the warning values,” said Tomaz Tercekfrom from the Institute for Non-Ionizing Radiation, which also participated in the project.