Dividends
The Board of Directors and management consider an constant and stable dividend to constitute a key element of MTS’s investment attractiveness and shareholder return.
As a leading telecommunications group operating in rapidly developing, yet volatile, markets, MTS’s primary need is to maintain sufficient resources and financial flexibility to meet our financial and operational requirements. As demonstrated throughout our history, MTS continually seeks ways to create shareholder value through both commercial and financial strategies, which may include both organic and inorganic development as well as the Company’s capital management practices.
Following historical practice, MTS continues to pay dividends as part of our commitment to enhancing shareholder value. In determining the Company’s payout, the Board of Directors considers a number of factors, including cash flow from operations, capital expenditures and the Company’s debt position. Decisions on dividends are proposed by the Board of Directors and voted upon thereafter at an annual general meeting of shareholders (AGM) or extraordinary meeting of shareholders (EGM).
Payments in 2019, 2020** and 2021 amounted to RUB 28.66, RUB 29.50, and RUB 37.06 respectively, in line with the previous dividend policy, which provided a minimum cumulative payout of RUB 28.0 per share per calendar year through two semi-annual payments. In June 2022, shareholders at the AGM approved annual dividends of RUB 33.85 per ordinary MTS share based on the Company’s full-year 2021 financial results, equivalent to a total of RUB 66.3 bn*. In May 2023, the Board of Directors recommended that the AGM approve annual dividends based on full-year 2022 results of RUB 34.29 (a total of RUB 67.2 bn), and the following decision was made by shareholders in June 2023. The record date for shareholders entitled to receive dividends for the 2022 fiscal year was June 29, 2023.
In addition to regular payments under the dividend policy, the Company may further increase shareholder returns through a share buyback program in the open market. When making a decision on the launch and size of a program, the Board of Directors will take into account the current availability of funds, operating performance, amount of debt and future needs of the Company, as well as the overall market situation.
Regular Dividend History
| 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020** | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total regular dividends announced and paid out*, RUB bln | 15.1 | 19.3 | 29.6 | 39.4 | 30.7 | 30.0 | 30.4 | 41.0 | 51.2 | 52.0 | 52.0 | 52.0 | 52.0 | 57.3 | 58.9 | 74.1 | 66.3*** | 67.2*** |
| Regular dividends per share, RUB | 7.6 | 9.7 | 14.8 | 20.2 | 15.4 | 14.5 | 14.7 | 19.8 | 24.8 | 25.2 | 26.0 | 26.0 | 26.0 | 28.66 | 29.50 | 37.06 | 33.85 | 34.29 |
*Total calculated sum includes dividends for quasi-treasury shares owned by MTS subsidiaries and may differ from net annual cash flow for dividend payments as reflected in the Company’s financial statements.
** Excludes a special dividend paid in Q1 2020 based on the Company’s 9M 2019 financial results and taking into consideration the sale of foreign subsidiary amounting to RUB 13.25 per ordinary share (in total RUB 26.5 bn).
*** The amount of accrued dividends, the actual payments may differ on the back of termination of ADR program.
Regulation on Dividend Policy