Page 15 - bne_Tech_09_2020

Telecom
September 2020 www.intellinews.com I Page 15
Russia’s MTS released solid 2Q20 IFRS numbers
Russia’s Mobile TeleSystems (MTS) released solid 2Q20 IFRS numbers in line with the trends on August 20.
“The numbers confirm relative resilience of the business to lockdown challenges. Mobile service revenue grew despite pressure in roaming, while fixed-line growth accelerated. All in all, results back solid dividend outlook,” BCS Global Markets said in a note.
Revenue grew 1% year on year, although Russia’s lockdown hit roaming revenue, put pressure on handset sales and hurt the company’s banking segment due to the temporary closure of physical locations.
Still, mobile service revenue in Russia grew 2%
y/y, and analysts say a strong start to the year (segment’s revenue + 7% in 1Q20) offset the loss
of roaming revenue. And fixed line segment slightly accelerated its growth (to 5% y/y from 1.4%).
EBITDA also grew 1% y/y (for 44% margin), reflecting top-line performance, despite provisions in MTS Bank and with RUB0.8bn ($10.8mn) (2pp) positive one-off provision revaluation. Net income declined 8% y/y due to FX loss, higher taxes.
MTS Bank says it has completed most of the provisions intended for 2020, and the company MTS believes the bank is now well capitalised.
MTS 2Q20 IFRS results review Rb bn
2Q19
3Q19
4Q19
1Q20
2Q20
Q/Q
Y/Y
BCS
Act vs BCS
Cons-s
Act vs Cons
Revenue, Rb bn
Adj. EBITDA, Rb bn
Net income, Rb bn
Adj. EBITDA margin
Net margin
Op Cash Flow, Rb bn
CapEx, Rb bn
Net debt/EBITDA
116.17
51.27
12.71
44%
11%
17.5
-22.7
1.6
123.05 127.06 119.61
56.69 51.64 51.54
18.39 5.55 17.74
46% 41% 43%
15% 4% 15%
61.7 43.6 39.5
-21.8 -22.2 -20.2
117.73 -2%
51.56 0%
11.75 -34%
44% 1ppts
10% -5ppts
1% 114.39 3%
1% 48.16 7%
-8% 8.96 -
ppts 42% -
-1ppts 8% -
114.8 3%
48.19 7%
10.21 -
42% -
- -
25.1 -37% -
-20.6 2% -9%
1.6 1.5 1.6 1.6
Source: Company data, BCS GM. Consensus – Interfax.