MTS Reports Q4 & FY 2020 Results

Rhea-AI Summary

Mobile TeleSystems (MBT) reported a 5.2% increase in consolidated revenue for FY2020, totaling RUB 494.9 billion. The Group's adjusted OIBDA rose by 1.7% to RUB 215.2 billion, while net profit surged 13.2% to RUB 61.4 billion. Notably, Q4 saw mobile service revenue growth of 6.4% year-over-year. Additionally, MTS's digital ecosystem grew, with pay-TV users increasing 44% to 6.6 million. The company projects at least 4% growth in both revenue and OIBDA for 2021, with cash CAPEX estimated at RUB 100-110 billion.

Positive

• FY2020 revenue rose by 5.2% to RUB 494.9 billion.
• Net profit increased by 13.2% to RUB 61.4 billion.
• Q4 mobile service revenue grew by 6.4% despite COVID-19 impacts.
• Pay-TV users increased by 44% to 6.6 million.
• 2021 guidance anticipates at least 4% revenue and OIBDA growth.

Negative

• Operating profit decreased by 5.2% in Q4.
• Operating profit for FY2020 fell by 2.3%.

• Full-year 2020 Consolidated Group Revenue increased 5.2% year-over-year to reach RUB 494.9 bn.
• FY20 Group Adjusted OIBDA[1] increased 1.7% year-over-year to RUB 215.2 bn.
• FY20 Group Net Profit increased 13.2% year-over-year to RUB 61.4 bn.
• 2021 Full-Year Guidance of at least 4% revenue growth, at least 4% OIBDA growth, and Cash CAPEX of approximately RUB 100-110 bn.

MOSCOW, RUSSIA / ACCESSWIRE / March 4, 2021 / Mobile TeleSystems Public Joint Stock Company ("MTS" or "the Company") (NYSE:MBT) (MOEX:MTSS), Russia's largest mobile operator and a leading network-native provider of media and digital services, announces its fourth-quarter and full year 2020 financial and operating results.

In 2020, MTS demonstrated solid top-line performance across core telecom services and segments beyond connectivity, with Consolidated Group Revenue increasing 5.2% year-over-year. The company also saw full-year Group Adjusted OIBDA notch upwards by 1.7% year-over-year, and Group Net Profit increased double digits (+13.2%) versus 2019.

Notably, Russia mobile service revenue accelerated to 6.4% growth year-over-year in Q4 - despite headwinds in international roaming revenue due to continued travel restrictions amid the COVID-19 pandemic. The Company also added some 230,000 active mobile subscribers quarter-on-quarter in Russia, reflecting a recovery in the subscriber base following COVID-19 impacts on guest workers, tourists, and secondary SIM card users.

In addition, the Company saw strong uptake of services and apps from across the expanding MTS digital ecosystem. Pay-TV users increased 44% in 2020 to reach 6.6 m, and, in particular, users of MTS's over-the-top offering for smart TVs and smart devices more than doubled year-over-year to reach 2.5 m. In addition, the number of consumer broadband subscribers increased 10.3% year-over-year in Q4 to reach 3.8 m.

Alexey Kornya, President & CEO, commented: "I'm happy to report that MTS closed Q4 in a position of strength. Despite global challenges, in 2020 we delivered record-high financial results in Russia. Our core telecom business saw top-line growth in both wireless and wireline segments. In our new verticals, we saw surging acceleration in key performance indicators. In Fintech, net interest income at MTS Bank was up by 32% year-over-year. In Media, we gained 1.5 million new OTT users - more than the total we had at the beginning of the year. And in B2B, we grew our IoT subscriber base by 30% and saw double-digit revenue growth in cloud solutions. Overall, we executed at pace on the first full year of our CLV 2.0 growth strategy. We are gaining momentum on our journey to be Russia's premier network-native provider of advanced digital services."

MTS Group key figures[2] (RUB bn)

	4Q20	4Q19	Change, %	FY20	FY19	Change, %
Revenue	133.7	124.4	7.4%	494.9	470.6	5.2%
o/w Russia	131.9	123.5	6.8%	488.5	467.0	4.6%
Adjusted OIBDA	52.5	51.9	1.3%	215.2	211.6	1.7%
o/w Russia	51.4	51.3	0.1%	210.6	208.1	1.2%
Operating profit	26.1	27.6	-5.2%	112.9	115.6	-2.3%
Profit attributable to owners of the Company	13.1	5.5	136.2%	61.4	54.2	13.2%
Cash CAPEX				96.9	90.7	6.9%
Net debt				317.6	280.5	13.3%
Net debt / LTM Adjusted OIBDA				1.5x	1.3x	n/a
Operating cash flow				155.5	106.7	45.8%
Free cash flow ex-Bank excl. SEC/DOJ payment & cash proceeds from sale of VF Ukraine and NVision Group.				61.6	73.6	-16.2%

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

[1] Adjusted OIBDA for 4Q 2019 and 2019 does not include a reversal of impairment of non-current assets of RUB 148 mln. Adjusted OIBDA for 2020 does not include a loss from impairment of non-current assets of RUB 2,023 mln.
[2]Financials for 2019 and 2020 have been restated due to the deconsolidation of NVision Group.
[3] Excluding purchases of 4G license in Armenia in 2019 and net of cash proceeds under sharing agreement.
[4] Excluding lease obligations.
[5] Including the effects of IFRS 15 and 16.

SOURCE: Mobile TeleSystems PJSC

View source version on accesswire.com:
https://www.accesswire.com/633453/MTS-Reports-Q4-FY-2020-Results

FAQ

What was Mobile TeleSystems' revenue for FY2020?

Mobile TeleSystems reported a revenue of RUB 494.9 billion for FY2020.

How much did Mobile TeleSystems' net profit increase in FY2020?

The net profit of Mobile TeleSystems increased by 13.2% to RUB 61.4 billion in FY2020.

What was the revenue growth forecast for Mobile TeleSystems in 2021?

Mobile TeleSystems projects at least 4% revenue growth for 2021.

How many pay-TV users did Mobile TeleSystems have by the end of 2020?

By the end of 2020, Mobile TeleSystems had 6.6 million pay-TV users.

What was the cash CAPEX guidance for Mobile TeleSystems in 2021?

Mobile TeleSystems has set a cash CAPEX guidance of approximately RUB 100-110 billion for 2021.