MTS raises FY outlook after strong Q3 growth

Tuesday 14 November 2017 | 16:33 CET | News

Revenues of Russian mobile operator MTS grew by 2.1 percent to RUB 114.6 billion in the third quarter of this year. Adjusted OIBDA increased by 6.7 percent to RUB 48.8 billion, and capital expenditure amounted to RUB 22.3 billion, up by 22.9 percent.  Thanks to the strong results, the company raised its full-year outlook. 

MTS now expects revenues flat to 2 percent higher and adjusted OIBDA growth of over 5 percent in 2017, versus an outlook previously for annual sales down 2 percent to up 2 percent and OIBDA growth over 4 percent. The improved outlook comes despite poor results in Turkmenistan, which MTS said weighed on the group result. 

MTS said increased use of both voice and data mobile services in Russia and Ukraine drove the growth in revenues. The company benefited from take-up of bigger data plans and increased international roaming, as well as the optimisation of its retail chain, which helped offset the decline in customer numbers. 

Mobile subscribers grew by 0.4 percent quarter-on-quarter, but were down by 0.5 percent year-on-year to 108.3 million at the end of September. In Russia alone, the base increased by 0.6 percent quarter-on-quarter and dropped by 0.7 percent year-on-year to 78.5 million mobile customers.

The adjusted OIBDA margin grew to 42.6 percent, up by 1.9 percentage points from a year ago. Net profit jumped by 43.0 percent year-on-year to RUB 18.0 billion.

In Russia, revenues increased by 3.2 percent to RUB 106.3 billion. Mobile service revenues grew by 4.4 percent year-on-year to RUB 79.2 billion, while fixed service revenues increased by 0.1 percent to RUB 15.1 billion. OIBDA grew by 7.8 percent to RUB 46.6 billion, and the OIBDA margin was 43.8 percent, up by 1.9 percentage points. 

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Categories: Mobile & Wireless
Companies: MTS
Countries: Russian Federation
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