Page 15 - bne_Tech_11_2020

Telecom
November 2020 www.intellinews.com I Page 15
Overall MTS numbers came 2-5% ahead of expectations on better performance in mobile services, BCS GM commented, welcoming the upgrades to 2020 guidance (revenue up 3% and more, adjusted EBITDA flat to 2%).
In 3Q20 sales of devices and software returned to growth of 12%, as the handset market bounced and despite an 11% y/y decline in store count. MTS Bank grew revenue 16% y/y as lockdown was lifted and thanks to 26% y/y expansion in its loan portfolio.
BCS GM analysts maintain a Hold recommendation on the name and suggest focusing on trends in mobile service revenue
MTS 3Q20 IFRS results review
in Russia, plans and progress with monobrand optimisation, MTS Bank results, and updates on competition and regulatory environment (including 5G).
Sova Capital on November 17 also welcomed the results coming in ahead of expectations, and the acceleration of the growth in mobile services despite the headwinds from reduced roaming revenue.
The guidance upgrade together with the company’s strong 3Q20 numbers support Sova's positive view on MTS and Buy recommendation on its shares, the analysts write.