MTS financial indicators

2023

Revenue growth by 13.5% to 606 billion rubles

In 2023, MTS raised 606 billion rubles, which is 13.5% more than a year earlier. The net profit of the Russian telecom operator increased even more - by 64.2%, to 53.3 billion rubles. The company published such data on March 5, 2024.

It follows from the MTS reporting that the company earned 282.5 billion rubles on communication services to individuals in 2023 against 265.9 billion rubles a year earlier (an increase of 6.2%). Sales of phones in the operator's retail grew by 17.1% and reached 41.9 billion rubles.

source = MTC

In the segment of communication services for corporate and state clients, MTS revenue in 2023 amounted to 80.8 billion rubles, which is 13.1% more than a year earlier. Sales of phones to such customers increased by 35.6%, to 10.6 billion rubles. The report also indicates MTS revenues from sales of advertising technologies and cloud services in the B2B and B2G segment - 37.2 billion rubles (+ 47.9% by 2022) and 13.5 billion rubles (+ 22.6%) at the end of 2023.

As noted in the reporting of the telecom operator, the advertising business in 2023 accelerated its growth rate by expanding the product portfolio, increasing advertising tools and increasing the customer base. The growth in sales of mobile phones in the company was associated with a low base in 2022, as well as with marketing programs.

By the end of 2023, MTS's mobile subscriber base in Russia amounted to 81.1 million users, which is 1.4% more than a year earlier. The report pointed to a 6.7% drop in voice traffic and an 11.8% increase in data traffic. The number of users of the operator's ecosystem in 2023 increased by 11.9%, to 15.1 million people, and revenue from them amounted to 156 billion rubles. The number of pay TV subscribers from MTS in 2023 increased by 18.9% and reached 13.2 million.

MTS Report 2023

Loss of 282 million rubles due to the fall of the car market

MTS wrote off 282 million rubles due to failed investments in automotive electronics. The problem lies in the depreciation of the assets of the MTS Auto division, according to the company's materials published in 2023. Read more here.

2022: Revenue growth by 2.6% to 541.7 billion rubles

In 2022, the MTS Group raised 541.7 billion rubles against 527.9 billion rubles in 2021 (an increase of 2.6%). Net profit during this time decreased by 48.7% - from 63.5 billion to 32.6 billion rubles. The telecommunications operator released such data in early March 2023.

It follows from the MTS reporting that in 2022 the company's revenue from communication services in Russia amounted to 435.6 billion rubles, an increase of 4.6% compared to 2021. The subscriber base in the Russian Federation remained at the level of 80 million users. In total, customers spoke over 300 billion minutes in the MTS communication network over a year. Sales of phones and accessories in Russia decreased by 36.7% and amounted to 43.6 billion rubles.

Main indicators of MTS for 2022 and 2021

MTS also reported that the number of users of the OTT platform in 2022 increased by 63.4% compared to the end of 2021 - to 6.6 million people. The total number of pay-TV subscribers increased by a third and reached 11.1 million.

The number of MTS ecosystem clients by the end of 2022 amounted to 13.5 million, an increase of 52.7% on an annualized basis. The indicator of the average number of ecosystem products per user for the year increased from 1.43 to 1.6.

By the end of 2022, the net debt of the MTS group amounted to 383.7 billion rubles, which is 1.5% less than a year ago. The company's capital expenditures for the year amounted to 111.2 billion rubles (an increase of 0.2%), the money went to the development and modernization of the network, the development of the digital ecosystem and compliance with regulatory requirements.

At the end of 2022, the revenue of MTS Belarus and Armenia increased by 6.4% and 6.5%, respectively, and net profit in these countries - by 7.3% and 66.6%. MTS connects this with the "increased tourist flow." In Russia, the company's revenue rose by 2.5% (to 534 billion rubles), net profit fell by 46.8% (to 32.5 billion rubles).

MTS Group Q4 and 2022 Financial and Operational Results

2021: MTS has planned record large capital expenditures for the year - up to 110 billion rubles

For 2021 , MTS has planned capital expenditures in the amount of 100-110 billion rubles, according to the company's annual report, published in April^[1]This does not include the potential cost of licenses with radio frequencies, it is specified in the same place.

The financing is intended for further expansion of the network, connection to the network of socially significant objects, special projects related to big data, digital business in the B2B segment, artificial intelligence and ecosystem products, modernization of a fixed network, the MTS annual report says.

Part of the amount is planned to be spent on the creation of radio communication subsystems and additional data storage systems, measures to comply with the "Spring Law," repair capital costs, the purchase of software for network management in Armenia and a number of other items of expenses.

MTS revenue in 2020 amounted to 494.9 billion rubles, which is 5.2% higher than a year earlier (photo - Vladislav Shatilo/RBC)

For 2020, MTS planned capital expenditures in the amount of 90 billion rubles, but the actual amount at the end of the year was higher - about 97.8 billion rubles, of which the vast majority went to the development of the company's networks in Russia.

The annual report explains that the planned increase in capital expenditures for 2021 is associated with the growth of exchange rates, a competitive environment and the development of the ecosystem and new business areas. The actual amount at the end of the year, as is often the case, may differ.

The fact is that MTS is actively modernizing existing communication networks, building new ones, as well as launching and developing new ecosystem digital directions. This is due to CAPEX, - said TAdviser in MTS.

The amount of capital expenditures planned for 2021 in absolute terms is the largest for MTS in at least the last 10 years. So, for example, in 2011 for 2012 the planned amount was about 78.5 billion rubles, and in subsequent years the amounts usually amounted to about 80-90 billion rubles.

True, in 2015 the indicator turned out to be much higher - the actual capital expenditures of MTS reached 106.5 billion rubles, however, this amount, unlike the plan for 2021, includes expenses for 3G and 4G licenses. MTS explained to TAdviser that the reporting format allows both one and the second type of information provision.

As for the costs of buying companies or shares in them, in 2020 MTS acquired a 51% stake in the Green Point holding, paying 1.37 billion rubles, and as part of the strategy for the development of the digital ecosystem, acquired 100% of Stopol Group, paying 312 million rubles in June.

In September 2020, MTS also announced plans to invest 125 million rubles in the developer of the financial application CoinKeeper, and in January 2021 announced an investment of MTS Venture Fund in the amount of about 60 million rubles in exchange for a share of 10% in the startup Airo.

We always look at the issue of acquiring or selling companies opportunistically: if there is a profitable offer, we are considering it, "TAdviser told MTS regarding plans to acquire shares in some other companies in 2021.

2020

Revenue growth by 5.2%, to 494.9 billion rubles, profit - 61.4 billion rubles

The group MTS in 2020 gained 494.9 billion, rubles which is 5.2% more than a year earlier. Revenues on the Russian market increased by 4.6%, to 488.5 billion rubles.

The company attributed the growth in revenue to the dynamics of consumption of major telecommunications services and the development of new business segments, with the media and fintech areas, as well as cloud and digital solutions for the business market, providing almost a third of the annual revenue growth. According to MTS President Aleksei Kornya, in 2020 the company lost about 5-6 billion rubles in revenue due to a decrease in roaming revenues.

MTS reports say that the operator's subscriber base in Russia in 2020 decreased by 0.6 million, to 78.5 million users. The last time the MTS subscriber base fell in 2017 (-2.2%), and earlier - only in 2013.

MTS financial indicators

MTS net profit at the end of 2020 reached 61.4 billion rubles, which is 13.2% more than a year ago. The telecom operator linked this growth to robust core business performance and lower net interest expense, reflecting MTS'current moves to optimize its debt portfolio, as well as the effect of changes in foreign exchange rates and derivative transactions, which the company regularly uses to reduce the impact of currency volatility. At the same time, the dynamics of the net profit indicator on an annualized basis were influenced by:

• profit in 2019 from the sale of MTS's stake in Ozon.ru;
• termination of activities in Ukraine;
• reduction of the contribution from MTS-Bank operations;
• impairment of ticketing and entertainment assets.

MTS revenue in the Russian mobile services market in 2020 amounted to 334.5 billion rubles, which is 4.5% more than in 2019. In the fixed-line services market, there was an increase of 3.4%, to 62.1 billion rubles.^[2]

Capitalization $8.9 billion

The capitalization of Sberbank in comparison with the largest IT and retail companies in Russia.

MTS took a loan of 30 billion rubles from VTB

On February 10, 2020, MTS announced that it had received a loan of 30 billion rubles from VTB. The telecom operator will spend these funds on refinancing debt, which expires in 2020.

MTS Vice President  for Finance Andrei Kamensky said that improving the debt structure is one of the key elements of the company's financial strategy.

MTS raised 30 billion rubles from VTB to refinance debt

As the macroeconomic situation improves, we continue to proactively work to reduce the interest rates of the debt portfolio, increasing the maturity of obligations and diversifying sources of financing. Attracting a new loan from VTB Bank is another step to strengthen our mutually beneficial relations and will allow us to refinance the company's current obligations on more favorable terms, he said.

It is noted that MTS took a loan from VTB for a period of six years under a revolving credit line for 80 billion rubles, opened in May 2018.

In a conversation with Vedomosti, Denis Kuskov, General Director of the TelecomDaily information and analytical agency, called the MTS debt management policy effective.

I do not see any negative moments in debt refinancing, the company is actively developing, the expert believes.

He noted that MTS is leading in capitalization (more than $10 billion by February 10, 2020) and the number of subscribers among all cellular operators.

According to Timur Nigmatullina, investment manager of Otkritie Broker, a loan of 30 billion rubles is not extraordinary on the scale of MTS's business, when the operator's total debt is 376 billion rubles and net debt is 307 billion rubles. The company also needs additional liquidity, as it will soon pay dividends and need a source of funding, he added^[3]

2019: Revenue growth 5.5% to RUB 476.1 billion

In 2019, the revenue of the MTS group reached 476.1 billion rubles (taking into account the deconsolidation of the results of the former MTS Ukraine subsidiary), an increase of 5.5% compared to the previous year earlier. On the Russian market, the operator earned 472.6 billion rubles against 448.1 billion rubles in 2018. The company's revenues in Armenia and Belarus decreased by 2.2% to 56.6 billion rubles.

MTS ended 2019 with a net profit of 54.2 billion rubles, which is almost 8 times more than profit in 2018. In Russia, net profit rose by 45.3% to 99 billion rubles.

MTS financial indicators

According to the President of MTS Aleksei Kornya at a conference dedicated to the publication of financial statements, the net profit was influenced by "a steady increase in service consumption," as well as the lack of super-fierce competition in the market.

There are two main factors to this. Last year we had a low base because there was a reserve that we accrued. The second factor is the growth of operating profit and the growth of OIBDA, - Aleksei Kornya told reporters in response to a question about the factors of growth in indicators.

MTS revenue in the Russian mobile services market in 2019 reached 320.1 billion rubles, which is 2.4% higher than revenues a year ago. In the segment of fixed-line services, the company received 60.1 billion rubles (a decrease of 0.5%).

System integration services added about 10.3 billion rubles to MTS revenue in 2019, which is 39.2% more than a year earlier. Group revenues from MTS Bank jumped by 151.8% and amounted to 29.8 billion rubles. Another income item - the sale of goods - provided the operator with annual revenue in the amount of 69.4 billion rubles (an increase of 0.3%).

As of December 31, 2019, MTS had 86.9 million customers, including 79.1 million in Russia. The operator's subscriber base in the Russian market increased by 1.4% compared to the end of 2018.^[4]

2018

Loss of 765 million for a failed cloud cash desk project

On April 26, 2023, at one of the conferences dedicated to the telecommunications industry, the MTS operator recognized its investments in the online cash desk project as a mistake. Read more here.

Revenue growth by 8.4% to 480.3 billion rubles

In 2018, MTS received revenue of 480.3 billion rubles, which is 8.4% more than a year earlier. The company's revenues in Russia rose by 8.7% and amounted to 448.1 billion rubles.

One of the revenue catalysts was cloud services, on which the operator earned three times more in 2018 compared to 2017. In addition, MTS calls its drivers the development of fintech services, sales of goods, as well as the development of the system integration business, the annual revenue of which increased by almost a third to 7.4 billion rubles.

MTS financial indicators

In 2018, sales of goods from MTS jumped by 31.7% mainly due to an increase in the sale of phones, accessories for them and. software Sales of software products increased by one and a half times compared to the previous year as a result of several large contracts NVision Group for the supply of licenses. Microsoft Sales growth smartphones is stimulated by offers in the MTS retail network, such as cashback and trade-in programs, the report said.

MTS subscriber base is declining: by the end of 2017, it was measured by 106.5 million customers, and a year later - 105.3 million. In Russia, the number of subscribers during this time decreased by 0.4% to 78 million. The company attributed this decline to a reduction in SIM card sales.

The operator's revenues in the Russian mobile market in 2018 increased by 2.8% and reached 312.6 billion rubles. Fixed-line services brought MTS 60.4 billion rubles of income (a decrease of 0.6%). MTS Bank's revenue amounted to 11.9 billion rubles.

In 2018, the number of MTS retail stores increased slightly to 5879. The volume of online sales exceeded 6.9 billion rubles, exceeding the 2017 figure by 33.8%.

In 2018, MTS registered a net profit of 68.1 billion rubles, which is 15.4% higher than a year ago.^[5]

3x Increase in Revenue from Cloud Services

On January 18, 2019, MTS PJSC announced that it had increased revenue from cloud services by more than three times in 2018, the volume of stored and processed data increased sevenfold over the same period. The Russian In 2018, companies used solutions most actively, the IaaS share of which exceeds 80% of the total volume of contracts#. CloudMTS Companies moved both supporting and critical functions to the cloud: online client portals, -systems, CRM accounting applications and. databases

author '= Oleg Motovilov, director of cloud provider# CloudMTS ' In 2018, we expanded the capabilities of the# CloudMTS cloud platform, launched additional services for business: mail cloud services, a service for storing and exchanging corporate information, a dedicated segment for working with personal data. Investments in cloud development, taking into account M&A transactions related to purchases of the Avantage data center and the IT-Grad cloud provider, have exceeded 12.4 billion rubles over the past year. We provided a significant increase in computing power and expanded the technological base for providing profitable services to corporate clients.

The most popular cloud services are among retail, which in 2018 accounted for about 23% of projects implemented by the# CloudMTS provider. Retail chains move online stores, online customer portals, databases, and internal accounting systems to the clouds. In second place is the financial sector, which occupies about 20% of the provider's project portfolio. The business of this sector transfers test environments for service development, sites and CRM systems to the clouds. Companies in the manufacturing industry close the top three, whose share in the total volume of# CloudMTS projects is about 18%. Industrial enterprises use clouds for ERP systems, internal corporate resources such as hr portals, databases and mail services, and also use subscription software.

MTS prepares to pay a fine of 54 billion for participation in corruption

Mobile Telesystems (MTS) published in November 2018 financial results for the third quarter of 2018. The most important news in the report was the creation by the company of a financial reserve in the amount of 55.8 billion rubles. Due to the creation of the financial reserve, MTS received a net loss of 37 billion rubles for the quarter, otherwise the operator would show a net profit of 18.7 billion rubles^[6]

The reserve was created in order to resolve possible claims by the US authorities as part of an investigation into corruption ties in Uzbekistan. The investigation has been ongoing since 2014, but the reserve has been created only now, because, as the president of MTS Aleksei Kornya explained, only now the company has an understanding of potential obligations and the opportunity to make appropriate assessments.

2017: Record System Integration Revenue

In 2017, the revenue of the MTS group reached 442.9 billion rubles, an increase of 1.7% compared to 2016. Net profit increased by 15.6% to 56 billion rubles.

In Russia, the telecommunications company's revenue increased by 3% to 412.3 billion rubles, and net profit increased by 9.4% to 59 billion rubles.

MTS received record revenue from system integration

Rapid growth showed the direction of system integration, but only in the fourth quarter, when MTS revenue from this business in Russia jumped by 152% and amounted to a record 2 billion rubles. However, for the whole of 2017, the operator earned the same amount on system integration as a year earlier (about 5.6 billion rubles). The volatility of income in the market is due to the uneven distribution of contracts during the year, the report said.

In the segment of fixed-line services, MTS continues to show a decline, which in 2017 was measured at 0.6%, and revenue - 60.8 billion rubles. The company clarifies that this was due to a decrease in revenue in the corporate sector, in addition, the negative dynamics is due to a decrease in fixed telephony subscribers. 

2017 was a year of transformation for MTS. We have successfully worked on the implementation of the digitalization strategy and expanded activities in new directions, - said the President and Chairman of the Board of  MTSAleksey Kornya.

As part of the development of the digital business, MTS has implemented Ultra HD (4K) on all its television platforms, launched a hybrid cloud for enterprise clients based on Microsoft Azure Stack in Russia in collaboration with Microsoft, began testing Mobile Connect mobile identification technology and entered into an agreement with Ericsson to launch a joint research and development center to create and sell solutions based on 5G technologies and the Internet of Things.

By the end of 2017, the number of MTS mobile subscribers in Russia decreased by 3.1% to 106.5 million.^[7]

2016: RUB revenue up 2.1%

MTS revenue grew by 2.1% over the year, amounting to 435.7 billion rubles in 2016. Adjusted OIBDA fell 4.4% to 169.3 billion. Additional expenses for the development of the retail network, as well as macroeconomic factors, had a negative impact on profitability in Russia, while the strengthening of the ruble limited the contribution of foreign subsidiaries.

In a fixed business, MTS revenue decreased slightly - by 0.7% to 61.2 billion rubles due to a 3.7% decrease in the number of fixed telephony subscribers. At the same time, revenue from fixed broadband access and pay TV services in the B2C segment continued to grow. Market shares in Moscow increased both in the segment of home broadband (by 3 pp to 33%) and in the segment of paid TV (by 4.6 pp to 29.6% 11). During the year, there was also stagnation in the B2B market and B2G associated with the current macroeconomic situation.

At the end of 2016, MTS completed the optical fiber network development program and launched LTE-enabled networks in all regions of its presence in Russia.

MTS expects that in 2017 the company's revenue will change within the framework of - 2% to + 2%, taking into account the following factors: competition in retail and tariff policy; planned sales of phones and equipment, taking into account retail optimization; dynamics of revenue from services in Russia; revenue dynamics in foreign subsidiaries and volatility of exchange rates against the Russian ruble

As of the end of the year, total debt amounted to 274.8 billion rubles (net of leasing expenses and borrowing expenses). This indicator decreases due to the stabilization of exchange rates, as well as the repayment of various debt instruments.

2015: Net profit in roubles fell 3.5%, revenue increased 5%

On March 21, 2016, MTS published its consolidated financial and operating results for 2015. The operator's net profit fell 3.5%, but revenue increased 5%.

According to the published data, in 2015, MTS's net profit amounted to 49.5 billion rubles against 51.3 billion rubles a year earlier. Aleksei Kornya, Vice President of Finance and Investments of the company, attributed this decline to an increase in depreciation expenses due to the expansion of the network, an increase in the cost of raising financing, as well as losses from impairment of assets in Armenia and the resumption of operations in Uzbekistan.

MTS Year Results: 3.5% Profit Drop

In 2015, MTS revenue reached 431.2 billion rubles, which is 5% more than a year earlier. The operator attributed this growth to rising revenues from mobile data transmission, an increase in the number of subscribers in Russia and the  implementation of a strategy for the development of the retail network.

It follows from the MTS report that the company's revenue from mobile Internet in Russia amounted to 77.2 billion rubles in 2015, an increase of almost 20% compared to the previous year. The number of retail stores increased by 1 thousand (to 5.1 thousand rods), and the number of subscribers - by 3.6 % to 77.3 million users.

The APPM indicator (average price of a minute) in the Russian Federation amounted to 0.85 rubles in 2015. Average monthly traffic (MOU) fell by 1.5% to 387 minutes.

In 2015, MTS earned about 40.3 billion rubles on the sale of goods in Russia, which is 37.4% more than a year earlier.

Net debt of MTS at the end of December 2015 was measured at 215.8 billion rubles, which is 1% more and 16.8%, respectively, than three months and a year earlier. The total debt of the operator at the end of 2015 amounted to 348 billion rubles, which is 19.3% more than in 2014.^[8]

2011: Revenue $12.319 (+ 9%), earnings $1.444 billion (+ 5 %)

• The Group's consolidated revenue, MTS denominated in dollars, USA grew by 9% year-on-year to $12.319 billion in 2011.

• MTS Group's consolidated OIBDA increased by 6% to $5.144 billion year-on-year in 2011.

• OIBDA margin in 2011 for MTS Group was 41.8%. In Russia, this figure was 42.6%, and in Ukraine - 48.0%.

• MTS Group's consolidated net profit in 2011 increased by 5% year-on-year to $1.444 billion.

• The company's net cash flow for 2011 amounted to $1.026 billion.

• MTS Group capital expenditures in 2011 amounted to $2.585 billion or 21.0% of the Group's revenue.

• MTS revenue in the main market of the company, in Russia, increased on an annualized basis by 9% to 311.9 billion rubles, in Ukraine - by 7% to 9.104 billion hryvnia.

• Revenue from data services in 2011 in Russia increased by 49% over the year to RUB 24.713 billion; in Ukraine, the growth of this indicator for the year amounted to 60%; in Uzbekistan, revenue growth from data services for the same period amounted to 122% on an annualized basis.

2010: Revenue - $11.293 billion, profit $1.381 billion

The Group's consolidated revenue MTS for 2010 grew by 14.5% year-on-year to $11.293 billion. Adjusted revenue of MTS Group, taking into account the consolidation of Comstar-OTS since Q4 2009, increased by 28%.

MTS Group's consolidated OIBDA for 2010 increased by 8.6% year-on-year to $4.873 billion. Adjusted OIBDA, taking into account the consolidation of Comstar-OTS since the 4th quarter of 2009, increased by 21%. The MTS Group's OIBDA margin for 2010 was 43.1%. MTS Group's consolidated net profit for 2010 increased by 36% to $1.381 billion.

MTS Group's consolidated revenue denominated in US dollars grew in the fourth quarter of 2010 compared to the fourth quarter of 2009 by 10% to $2.995 billion. MTS Group's consolidated OIBDA fell 3.5% to $1.159 billion in the fourth quarter. MTS Group's consolidated net profit in the fourth quarter of 2010 amounted to $156 million. OIBDA margin for the fourth quarter declined 5.4% to 38.7%.

The company's net cash flow for 2010 amounted to $1.529 billion.

In Russia, the main market of the MTS Group, revenue for 2010 increased by 12.4% to 286.4 billion rubles. (Adjusted revenue, taking into account the consolidation of Comstar-OTS since the 4th quarter of 2009, increased by 30%). OIBDA in Russia increased by 5.1% to RUB 124.3 billion in 2010 (adjusted OIBDA, taking into account the consolidation of Comstar-OTS since Q4 2009, increased by 20%). OIBDA margin for 2010 in Russia was 43.4%.

2009: Capitalization $13.19 billion

Company capitalization - $13.19 billion (July 2009)

2008: Revenue - $10.2 billion, net income - $1.93 billion

At the end of 2008 (US GAAP): revenue - $10.2 billion, net profit - $1.93 billion.

Notes