Russian mobile operator MTS reports 76.2% y/y slump in Q1 net profit
Reuters
Published May 18, 2022 15:55
(Reuters) - Russia's biggest mobile operator MTS on Wednesday reported a 76.2% year-on-year drop in first-quarter net profit to 3.9 billion roubles ($62.9 million), which it blamed in part on higher interest rates.
MTS said in early March, days after Russia sent tens of thousands of troops into Ukraine, that "current and potential external factors beyond its control" may impact its operations and financial results.
Russia hiked interest rates to 20% after unprecedented Western sanctions before two cuts to leave the key rate at 14%. MTS said profit was also negatively impacted by the "revaluation of securities in the current macroeconomic environment".
MTS did not provide forecasts, but said group revenue increased by 8.5% to 134.4 billion roubles, while operating income before depreciation and amortisation (OIBDA) was also higher, up 2% to 56.5 billion roubles.
President and CEO Vyacheslav Nikolaev described the results as solid and said the company was focused on ensuring daily business continuity and remained confident in its ability to navigate challenges.
Moscow-listed shares in MTS were 12.8% higher by 1408 GMT, having leapt more than 20% earlier in the day after its board had recommended a dividend of 33.85 roubles per share.
"The previous three-year dividend policy completed at the end of 2021," MTS said. "Adoption of a new dividend policy has been postponed for the time being."
Nikolaev said MTS had high-potential digital business lines and a resilient core telecoms business that meant it would continue developing long term.
MTS is one of several Russian companies developing services beyond its core business, including MTS Bank, e-commerce and streaming service KION. In December it signed a deal to acquire biometrics company VisionLabs.
Kommersant reported last month, citing sources, that MTS has been forced to indefinitely postpone the sale of its tower assets, although MTS said it was continuing to look at different scenarios and was in contact with potential investors.
($1 = 62.0000 roubles)
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.