MTS Announces Q2 Results

August 22, 2023
  • Q2 2023 Consolidated Group Revenue grew 14.8% year-over-year to RUB 146.7 bn.
  • Q2 2023 Group OIBDA increased 22.9% year-over-year to RUB 63.7 bn.
  • Q2 2023 Group Net Profit amounted to RUB 16.8 bn, an increase of 53.5% year-over-year.

Moscow, August 22, 2023 — Mobile TeleSystems Public Joint Stock Company (“MTS” or “the Company) (MOEX: MTSS), a digital ecosystem, announces its second-quarter 2023 financial and operating results.

In Q2 2023, consolidated Group revenue rose by 14.8% year-over-year to RUB 146.7 bn, driven by positive contributions from all segments. Group OIBDA in the reporting period increased by 22.9% to RUB 63.7 bn, supported by Fintech, Telecom and Media results. Strong growth in Net Profit, following OIBDA, was supported by a decrease in interest expense.

Viacheslav Nikolaev, President & CEO, commented: “MTS continues to implement a business strategy of developing an ecosystem of digital services with a sustainable telecommunications business as the foundation. Ecosystem clients generated for nearly half of our B2C revenue in the second quarter. We expect our ecosystem client base to expand at an even faster rate thanks to the launch of new products in the second half of 2023 as well as the expansion of the MTS Premium subscription and its integration with the MTS Cashback loyalty program.

“We are seeing robust growth in our B2B segment. MTS has become the leading mobile operator in the communication services market in terms of the number of customers, with a market share of 34%. I would also like to note the increase in AdTech revenues in the second quarter of 2023, which grew more than 46% year-over-year to RUB 8.5 billion.

“We continue to implement our strategy of optimizing our retail network, reducing our store count by more than 600 to 4,776 by the end of the second quarter. The issue of further network optimization will depend on the situation, as the retail market remains volatile.

“At year-end MTS will maintain its capital expenditures at the previous years level; the investment is aimed at the network development and growth of ecosystem business-lines. The year-over-year decrease in CAPEX during the first six months of the year was related to bulk purchases of equipment in 1H 2022.

“At the same time, we continue to provide high-quality connectivity services for our 80 million subscribers; the traffic volume transmitted to MTS subscriber devices in the second quarter amounted to 2.3 million terabytes, an increase of 15%. We also continue to see positive results from our technological transformation: we have already completed 32% of the migration to our consolidated service platform, The Platform; by the end of the year, we plan to have transferred more than 50% of the IT landscape of the entire ecosystem.”