Mobile TeleSystems PJSC: MTS Reports Q3 2021 Results

Rhea-AI Summary

Mobile TeleSystems (NYSE:MBT) reported an 8.4% year-over-year increase in Q3 2021 Consolidated Group Revenue to RUB 138.2 billion. Group OIBDA rose 4.2% to RUB 61.3 billion, supported by telecom and fintech services. However, net profit fell 12.5% to RUB 16.5 billion due to higher depreciation and finance costs. The company reaffirmed its full-year revenue growth outlook at high-single-digit percentage and raised OIBDA guidance to at least 6%. Increased investments in infrastructure were noted, along with narrowed cash CAPEX guidance to approximately RUB 110 billion.

Positive

• Q3 2021 Consolidated Group Revenue rose 8.4% year-over-year to RUB 138.2 billion.
• Q3 2021 Group OIBDA increased 4.2% year-over-year to RUB 61.3 billion.
• Full-year OIBDA guidance upgraded to at least 6% growth.
• Revenue guidance reaffirmed at high-single-digit growth.
• Narrowed Cash CAPEX guidance to approximately RUB 110 billion.

Negative

• Q3 2021 net profit decreased 12.5% year-over-year to RUB 16.5 billion.
• Increased depreciation and financing costs impacted net profit.

Q3 2021 Consolidated Group Revenue increased 8.4% year-over-year to reach RUB 138.2 bn.

Q3 2021 Group OIBDA increased 4.2% year-over-year to RUB 61.3 bn.

2021 Full-Year OIBDA Guidance was revised to growth of at least 6%, while revenue guidance was reaffirmed at high-single-digit growth, and Cash CAPEX guidance was narrowed to approximately RUB 110 bn from previously a range of approximately RUB 100-110 bn.

MOSCOW, RUSSIA / ACCESSWIRE / November 17, 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 third-quarter 2021 financial and operating results. Overall, the Company saw healthy growth in both Consolidated Group Revenue and OIBDA, reflecting solid performance in core telecom services as well as contributions from certain segments beyond connectivity.

Group Revenue increased 8.4% year-over-year in Q3 to reach RUB 138.2 bn on the back of growth in all key verticals: telecom, fintech, media, retail, and B2B cloud & digital solutions. In Q3 2021, Group OIBDA increased 4.2% year-over-year reaching RUB 61.3 bn, with significant positive impacts coming from telecom and fintech services, as well as some tailwinds from international roaming amid a limited restoration of global travel during the ongoing COVID-19 pandemic.

Group Net Profit in Q3 2021 decreased 12.5% year-over-year to RUB 16.5 bn supported by core business performance and MTS Bank. At the same time, net profit was constrained by higher depreciation and amortization of fixed and intangible assets - reflecting the Company's deliberate investment in network development and other areas - as well as an increase in financing costs versus the year-ago quarter due to higher net debt and an evolving interest rate environment, among other factors. For the first nine months of the year, net profit increased 3.2% year-over-year to RUB 49.9 bn.

Looking ahead, the Company reaffirmed its full-year 2021 outlook for high-single-digit growth in revenue, upgraded its guidance for full-year OIBDA to at least 6%, and narrowed its guidance for Cash CAPEX for the year to approximately RUB 110 bn from previously a range of approximately RUB 100-110 bn.

Vyacheslav Nikolaev, President & CEO, commented: "MTS continues to execute at pace on our long-term growth strategy, and I am happy to note that Q3 2021 was no exception. For the reporting period, MTS reported 8.4% year-over-year Group revenue growth, with all of our business lines contributing. Crucially, more than half of the top-line upside came from segments beyond connectivity, further demonstrating the progress we are making on our journey to become a mobile-first tech company.

"We are also pleased that in September shareholders approved our strategic initiatives to separate our active and passive infrastructure into wholly-owned legal entities. These steps are fully in line with our long-term ambitions to sharpen the operational focus of our businesses as well as seek new opportunities to unlock value for investors. Overall, we continue to move forward on our key development vectors, and I am encouraged by our performance heading into the final stretch of the year. Looking ahead, I am confident we will close out 2021 in a position of strength as we continue to deliver for the benefit of all of our shareholders."

Consolidated MTS Group key figures¹ (RUB bn)

			3Q21				3Q20			Change, %
Revenue			138.2				127.5				8.4	%
o/w Russia			136.4				125.8				8.5	%
OIBDA			61.3				58.9				4.2	%
o/w Russia			60.1				57.5				4.6	%
Operating profit			33.5				33.5				-0.2	%
Profit attributable to owners of the Company			16.5				18.8				-12.5	%
Cash CAPEX2			33.1				23.4				41.5	%
Net debt3			396.7				302.4				31.2	%
Net debt / LTM Adjusted OIBDA4			1.8				1.4				n/a
9M 2021 highlights			9M21				9M20
Operating cash flow			87.8				109.1				-19.5	%
Free cash flow ex-Bank & cash proceeds from sale of VF Ukraine			22.9				51.2				-55.2	%

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

¹ Financials for 2020 have been restated due to the deconsolidation of NVision Group.
² Net of cash proceeds under sharing agreement.
³ Excluding lease obligations.
⁴ Including the effects of IFRS 15 and 16.

Additional features:
File: MTS Q3 2021 Results Press Release

SOURCE: Mobile TeleSystems PJSC

View source version on accesswire.com:
https://www.accesswire.com/673341/Mobile-TeleSystems-PJSC-MTS-Reports-Q3-2021-Results

FAQ

What were Mobile TeleSystems' Q3 2021 revenue figures?

Mobile TeleSystems reported Q3 2021 revenue of RUB 138.2 billion, an 8.4% increase year-over-year.

How did Mobile TeleSystems' OIBDA perform in Q3 2021?

The Group's OIBDA for Q3 2021 increased 4.2% year-over-year to RUB 61.3 billion.

What is the 2021 revenue outlook for Mobile TeleSystems?

Mobile TeleSystems reaffirmed its revenue growth outlook for 2021 at high-single-digit growth.

What is the current net profit for Mobile TeleSystems?

Mobile TeleSystems recorded a net profit of RUB 16.5 billion for Q3 2021, a decrease of 12.5% year-over-year.

What adjustments were made to Mobile TeleSystems' CAPEX guidance?

The company's Cash CAPEX guidance was narrowed to approximately RUB 110 billion.