Mobile TeleSystems PJSC: MTS Reports Q1 2021 Results

Rhea-AI Summary

Mobile TeleSystems (MBT) reported a 5.5% year-over-year increase in consolidated group revenue for Q1 2021, reaching RUB 123.9 billion. Adjusted OIBDA also rose 6.7% to RUB 55.4 billion. Key growth drivers included handset sales, core telecom, financial services, and digital solutions. MTS Bank saw significant growth, with net interest income up 14.2% and net commission income up 39.1%. Media services experienced a dramatic user increase of 189%. The company reaffirmed its full-year guidance of at least 4% growth in both revenue and OIBDA, alongside targeted cash CAPEX of RUB 100-110 billion.

Positive

• Consolidated Group Revenue increased 5.5% to RUB 123.9 billion.
• Adjusted OIBDA grew 6.7% to RUB 55.4 billion.
• MTS Bank's net interest income rose 14.2% year-over-year.
• Net commission income for MTS Bank surged 39.1%.
• Media services users increased by 189%, reaching 2.9 million.

Negative

• Profit attributable to owners decreased by 8.8% to RUB 16.2 billion.
• Operating cash flow dropped 63.8% year-over-year.

• 1Q 2021 Consolidated Group Revenue increased 5.5% year-over-year to reach RUB 123.9 bn.
• 1Q 2021 Group Adjusted OIBDA[1] increased 6.7% year-over-year to RUB 55.4 bn.
• 2021 Full-Year Guidance reconfirmed of at least 4% revenue growth, at least 4% OIBDA growth, and Cash CAPEX of approximately RUB 100-110 bn.

MOSCOW, RUSSIA / ACCESSWIRE / May 18, 2021 / Mobile TeleSystems Public Joint Stock Company ("MTS" or "the Company") (NYSE:MBT); (MOEX:MTSS), Russia's largest mobile operator and a leading provider of media and digital services, announces its first-quarter 2021 financial and operating results.

Overall, the Company saw solid top-line performance across all key segments in Q1 2021. Consolidated Group Revenue increased 5.5% year-over-year to reach RUB 123.9 bn primarily driven by sales of handsets & accessories, core telecom services, and financial services, with additional positive contributions from the Company's Digital & Cloud Solutions and Media verticals. Group Adjusted OIBDA accelerated in the quarter to 6.7% growth year-over-year, reaching RUB 55.4 bn.

Operationally, MTS continued to see robust dynamics in promising new areas beyond connectivity. In Fintech, MTS Bank net interest income grew 14.2% year-over-year and net commission income grew an exceptional 39.1% year-over-year. In Media, over-the-top video streaming users nearly tripled versus the year-ago-quarter (+189%) to reach 2.9 million.

Vyacheslav Nikolaev, President & CEO, commented: "Today, I'm happy to report that MTS is off to a strong start in 2021 having delivered a solid set of results in Q1. We achieved robust top-line performance across all of our four verticals - Telecom, Fintech, Media, and Cloud & Digital Solutions. Operationally, we continue to move at pace on our Customer Lifetime Value 2.0 strategy, expanding our product portfolio and driving penetration of bundled offerings throughout our subscriber base. Looking ahead, we see promising trends in 2021 - including rapid uptake in digital services as well as the easing of pandemic-related roaming headwinds - and we reaffirm our full-year guidance of more than 4% growth in both revenue and OIBDA as well as RUB 100-110 bn in Cash CAPEX."

MTS Group key figures[2] (RUB bn)

			1Q21				1Q20			Change, %
Revenue			123.9				117.5				5.5	%
o/w Russia			122.5				116.0				5.6	%
Adjusted OIBDA[3]			55.4				51.9				6.7	%
o/w Russia[4]			54.2				51.0				6.3	%
Operating profit			28.6				26.9				6.3	%
Profit attributable to owners of the Company			16.2				17.7				-8.8	%
Cash CAPEX[5]			29.3				20.2				45.1	%
Net debt[6]			336.3				284.8				18.1	%
Net debt / LTM Adjusted OIBDA[7]			1.5				1.3				n/a
Operating cash flow			14.3				39.5				-63.8	%
Free cash flow ex-Bank & cash proceeds from sale of VF Ukraine			11.3				18.0				-37.1	%

More information at: http://ir.mts.ru/investors/financial-center/financial-results/default.aspx.

[1] Adjusted OIBDA for 1Q 2020 does not include a loss from impairment of non-current assets of RUB 319 mln. Adjusted OIBDA for 1Q 2021 does not include a reversal of impairment of non-current assets of RUB 5 mln.

[2] Financials for 2019 and 2020 have been restated due to the deconsolidation of NVision Group.

[3] Adjusted OIBDA for 1Q 2020 doesn't include a loss from impairment of non-current assets of RUB 319m. Adjusted OIBDA for 1Q 2021 doesn't include a reversal of impairment of non-current assets of RUB 5 mln.

[4] Adjusted OIBDA for 1Q 2020 doesn't include a loss from impairment of non-current assets of RUB 342 m.

[5] Net of cash proceeds under sharing agreement.

[6] Excluding lease obligations.

[7] Including the effects of IFRS 15 and 16.

SOURCE: Mobile TeleSystems PJSC

View source version on accesswire.com:
https://www.accesswire.com/647934/Mobile-TeleSystems-PJSC-MTS-Reports-Q1-2021-Results

FAQ

What were Mobile TeleSystems' Q1 2021 financial results?

In Q1 2021, Mobile TeleSystems reported a 5.5% increase in revenue to RUB 123.9 billion and a 6.7% rise in adjusted OIBDA to RUB 55.4 billion.

How did MTS Bank perform in Q1 2021?

MTS Bank saw a 14.2% growth in net interest income and a 39.1% increase in net commission income compared to Q1 2020.

What is the full-year guidance for MTS in 2021?

Mobile TeleSystems reaffirmed its full-year guidance for at least 4% growth in both revenue and OIBDA for 2021.

What significant changes occurred in MTS's media segment?

The number of over-the-top video streaming users for MTS's media services nearly tripled, increasing by 189% to reach 2.9 million.

What was the decrease in profit for MTS in Q1 2021?

The profit attributable to owners of MTS decreased by 8.8% in Q1 2021.