MTS Announces Q2 2020 Results

Rhea-AI Summary

Mobile TeleSystems PJSC (NYSE:MBT) reported Q2 2020 results with revenue of RUB 117.7 billion, marking a 1.3% increase from RUB 116.2 billion in Q2 2019. Adjusted OIBDA grew 0.6% to RUB 51.6 billion. Key contributors included MTS Bank and core connectivity services, despite COVID-19 challenges affecting roaming and banking. The company reaffirms its full-year guidance for revenue growth between flat to 3% and OIBDA decline between -2% to flat. Cash CAPEX projected at RUB 90 billion for 2020.

Positive

• Revenue increased 1.3% to RUB 117.7 billion in Q2 2020.
• Adjusted OIBDA rose 0.6% to RUB 51.6 billion.
• Positive contributions from MTS Bank and core connectivity services.
• Reaffirmation of full-year guidance for revenue growth of flat to 3%.

Negative

• Decline in operating profit, down 4.2% from Q2 2019.
• Profit attributable to owners decreased by 7.5% to RUB 11.8 billion.
• Negative impacts from lower international roaming due to COVID-19.

MOSCOW, RUSSIA / ACCESSWIRE / August 19, 2020 / Mobile TeleSystems PJSC (NYSE:MBT)

Q2 2020

in RUB bn unless indicated otherwise

MTS Group - Key figures*		Q2 2020			Q2 2019		Change,%
Revenue		117.7			116.2			1.3	%
o/w Russia		116.3			115.3			0.8	%
Adjusted OIBDA[1]		51.6			51.3			0.6	%
o/w Russia		50.4			50.3			0.3	%
Operating profit		26.0			27.1			-4.2	%
Profit attributable to owners of the Company		11.8			12.7			-7.5	%
Cash CAPEX[2]		20.6			22.7			-9.1	%
Net debt[3]		282.5			310.1			-8.9	%
Net debt / LTM Adjusted OIBDA[4]		1.3	x		1.4	x		n/a
H1 2020 highlights		H1 2020			H1 2019		Change, %
Operating cash flow		64.6			4.9			13	x
Free cash flow		24.8			-32.9			n/a
Free cash flow excl. SEC/DOJ payment		24.8			22.7			9.2	%

*All profit & loss figures for 2019 have been restated to reflect the deconsolidation of MTS's former Ukraine operations

Alexey Kornya, President & CEO, commented on the results:

"As the world navigates 2020, two things have become crystal clear: connectivity has never been so essential, and digital transformation is accelerating like never before. These trends only further reaffirm MTS's long-term strategy to maintain a leading network while moving forward to capture new opportunities in segments beyond connectivity.

Despite facing some challenges as a result of the COVID-19 pandemic, I am happy to report that MTS delivered positive top-line growth in Q2 2020. Group revenue increased 1.3% to reach 117.7 billion rubles, with major positive contributions from MTS Bank as well as core connectivity. In addition, we saw Group adj. OIBDA notch upward 0.6% to 51.6 billion rubles, with negative COVID-19 impacts in roaming and banking more than offset by positive contributions from core services, OPEX savings in retail, and other factors.

While some uncertainty and headwinds remain - in particular lower levels of international roaming as we enter peak summer travel season - we now have some additional clarity as we head further into the second half of the year. Given our proven record of core resilience, continued operational agility, and sustained demand for connectivity services, we are reaffirming our earlier full-year 2020 guidance of flat to 3% growth in revenue, -2% to flat in Adjusted OIBDA, and cash CAPEX of around RUB 90 bn."

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

[1] Adjusted OIBDA doesn't include a loss from impairment of non-current assets of RUB 0.9 bn for Q2 2020

[2] Excluding costs of RUB 0.02 bn related to the purchase of 4G licenses in Armenia in H1 2019

[3] Excluding lease obligations

[4] Including the effects of IFRS 15 and 16

SOURCE: Mobile TeleSystems PJSC via EQS Newswire

View source version on accesswire.com:
https://www.accesswire.com/602388/MTS-Announces-Q2-2020-Results

FAQ

What were the Q2 2020 financial results for MBT?

MTS reported Q2 2020 revenue of RUB 117.7 billion, a 1.3% increase, with adjusted OIBDA rising 0.6% to RUB 51.6 billion.

How did MTS perform in terms of profit in Q2 2020?

Profit attributable to owners decreased by 7.5% to RUB 11.8 billion in Q2 2020.

What is the full-year revenue growth guidance for MBT in 2020?

MTS reaffirms its full-year guidance for revenue growth between flat to 3%.

What challenges does MBT face due to COVID-19?

MBT faces challenges in international roaming and banking services due to the COVID-19 pandemic.