MTS Acquired Urent Kicksharing Service
January 15, 2024
Moscow, Russia – Mobile TeleSystems Public Joint Stock Company (MOEX: MTSS), a digital ecosystem, announces the closing of the transaction to acquire «URENTBIKE.RU» LLC (Urent) as a result of which MTS increased its share in Urent capital from 11.77% to 80.58% by buying out the company’s founders and intends to fully integrate the company into its own ecosystem.
Under the terms of the agreement, Urent’s management team under the leadership of the company's CEO Ivan Turinge will remain in charge of the project, with key shareholders participate in the company to develop the business in accordance with the approved strategy. The total amount to be paid for the acquisition will be based on the company’s performance in 2024–2025.
Urent, the second-largest operator of personal mobility devices in Russia in terms of revenue and fleet size, manages, both independently and through partnerships, a fleet of about 100,000 electric scooters in 124 cities across Russia. The company has operations in more Russian cities than any of its competitors.
In March 2022, MTS made first investments in Urent as the lead investor in an investment round.
“Personal mobility devices are quickly gaining in popularity across Russia. According to our forecasts, the market for kicksharing and other micromobility devices in the country could triple by 2027, to RUB 60 billion. We have seen robust performance since adding Urent to our MTS Premium subscription, and we intend to take the company to a new level by bolstering synergies with the MTS ecosystem. In 2024, we plan to expand the fleet to 150,000 scooters and to unveil a number of new solutions for urban mobility,” said Maxim Laptev, Head of Digital Products at MTS.
“We began our partnership with MTS nearly two years ago. In this time, our collaboration with one of the largest ecosystems in the Russian market has enabled us to increase our user numbers severalfold and to make electric scooters available for day-to-day transport for millions of Russians in more than 120 cities. By 2030, at least two-thirds of the economically active residents of Russia will become regular users of micromobility devices. Thanks to synergies with products available through the MTS ecosystem, they will have access to new services and a much better user experience, which in turn will help us strengthen our leading position when it comes to urban mobility,” said Ivan Turinge, CEO of Urent.
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For further information, please contact in Moscow:
Investor Relations Department
Mobile TeleSystems Public Joint Stock Company
Tel: +7 495 223 2025
E-mail: ir@mts.ru
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Mobile TeleSystems Public Joint Stock Company (“MTS” – MOEX: MTSS) is Russia’s ecosystem providing network-native digital services and largest mobile operator. The company offers a full range of solutions for consumers and business customers across wireless and wireline connectivity; over-the-top, linear, and satellite television; digital-first banking and financial services; as well as unified communications, cloud computing and IoT. There are more than 88 million mobile subscribers using MTS services across the company’s operations in Russia, Armenia, and Belarus, including more than 80 million subscribers in Russia alone. In addition, MTS has a nationwide network of more than 4,600 owned and franchised retail outlets in Russia, and provides nearly 10 million clients with broadband, TV, and/or fixed-line telephone connectivity, over 12 million users – with OTT and pay TV services. The number of ecosystem clients exceeds 14 million. MTS’s shares are listed on the Moscow Exchange under the ticker MTSS. For more information, please visit the company’s Investor Relations website at ir.mts.ru.
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Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of MTS, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, are forward-looking statements, including, but not limited to, statements regarding our voluntary deregistration, the timing of the effectiveness of the Form 15F, and our future filing obligations and disclosure plans. You can identify forward looking statements by terms such as “expect,” “believe,” “anticipate,” “estimate,” “intend,” “will,” “could,” “may” or “might,” and the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not undertake or intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. We refer you to the documents MTS files from time to time with the U.S. Securities and Exchange Commission, specifically the Company’s most recent Form 20-F. These documents contain and identify important factors, including those contained in the section captioned “Risk Factors” that could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, the severity and duration of current economic and financial conditions, including the ongoing geopolitical situation relating to the conflict in Ukraine, the expansion of sanctions imposed on the Russian Federation by the United States, European Union and United Kingdom, volatility in interest and exchange rates (including fluctuations of the value of the Russian ruble against the U.S. dollar and the Euro), commodity and equity prices and the value of financial assets; the impact of Russian, U.S. and other foreign government programs to restore liquidity and stimulate national and global economies, our ability to maintain our current credit rating and the impact on our funding costs and competitive position if we do not do so, strategic actions, including acquisitions and dispositions and our success in integrating acquired businesses, potential fluctuations in quarterly results, our competitive environment, dependence on new service development and tariff structures, rapid technological and market change, acquisition strategy, risks associated with telecommunications infrastructure, governmental regulation of the telecommunications industries and other risks associated with operating in Russia and the CIS, volatility of stock price, financial risk management and future growth subject to risks.
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Under the terms of the agreement, Urent’s management team under the leadership of the company's CEO Ivan Turinge will remain in charge of the project, with key shareholders participate in the company to develop the business in accordance with the approved strategy. The total amount to be paid for the acquisition will be based on the company’s performance in 2024–2025.
Urent, the second-largest operator of personal mobility devices in Russia in terms of revenue and fleet size, manages, both independently and through partnerships, a fleet of about 100,000 electric scooters in 124 cities across Russia. The company has operations in more Russian cities than any of its competitors.
In March 2022, MTS made first investments in Urent as the lead investor in an investment round.
“Personal mobility devices are quickly gaining in popularity across Russia. According to our forecasts, the market for kicksharing and other micromobility devices in the country could triple by 2027, to RUB 60 billion. We have seen robust performance since adding Urent to our MTS Premium subscription, and we intend to take the company to a new level by bolstering synergies with the MTS ecosystem. In 2024, we plan to expand the fleet to 150,000 scooters and to unveil a number of new solutions for urban mobility,” said Maxim Laptev, Head of Digital Products at MTS.
“We began our partnership with MTS nearly two years ago. In this time, our collaboration with one of the largest ecosystems in the Russian market has enabled us to increase our user numbers severalfold and to make electric scooters available for day-to-day transport for millions of Russians in more than 120 cities. By 2030, at least two-thirds of the economically active residents of Russia will become regular users of micromobility devices. Thanks to synergies with products available through the MTS ecosystem, they will have access to new services and a much better user experience, which in turn will help us strengthen our leading position when it comes to urban mobility,” said Ivan Turinge, CEO of Urent.
* * *
For further information, please contact in Moscow:
Investor Relations Department
Mobile TeleSystems Public Joint Stock Company
Tel: +7 495 223 2025
E-mail: ir@mts.ru
* * *
Mobile TeleSystems Public Joint Stock Company (“MTS” – MOEX: MTSS) is Russia’s ecosystem providing network-native digital services and largest mobile operator. The company offers a full range of solutions for consumers and business customers across wireless and wireline connectivity; over-the-top, linear, and satellite television; digital-first banking and financial services; as well as unified communications, cloud computing and IoT. There are more than 88 million mobile subscribers using MTS services across the company’s operations in Russia, Armenia, and Belarus, including more than 80 million subscribers in Russia alone. In addition, MTS has a nationwide network of more than 4,600 owned and franchised retail outlets in Russia, and provides nearly 10 million clients with broadband, TV, and/or fixed-line telephone connectivity, over 12 million users – with OTT and pay TV services. The number of ecosystem clients exceeds 14 million. MTS’s shares are listed on the Moscow Exchange under the ticker MTSS. For more information, please visit the company’s Investor Relations website at ir.mts.ru.
* * *
Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of MTS, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, are forward-looking statements, including, but not limited to, statements regarding our voluntary deregistration, the timing of the effectiveness of the Form 15F, and our future filing obligations and disclosure plans. You can identify forward looking statements by terms such as “expect,” “believe,” “anticipate,” “estimate,” “intend,” “will,” “could,” “may” or “might,” and the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not undertake or intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. We refer you to the documents MTS files from time to time with the U.S. Securities and Exchange Commission, specifically the Company’s most recent Form 20-F. These documents contain and identify important factors, including those contained in the section captioned “Risk Factors” that could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, the severity and duration of current economic and financial conditions, including the ongoing geopolitical situation relating to the conflict in Ukraine, the expansion of sanctions imposed on the Russian Federation by the United States, European Union and United Kingdom, volatility in interest and exchange rates (including fluctuations of the value of the Russian ruble against the U.S. dollar and the Euro), commodity and equity prices and the value of financial assets; the impact of Russian, U.S. and other foreign government programs to restore liquidity and stimulate national and global economies, our ability to maintain our current credit rating and the impact on our funding costs and competitive position if we do not do so, strategic actions, including acquisitions and dispositions and our success in integrating acquired businesses, potential fluctuations in quarterly results, our competitive environment, dependence on new service development and tariff structures, rapid technological and market change, acquisition strategy, risks associated with telecommunications infrastructure, governmental regulation of the telecommunications industries and other risks associated with operating in Russia and the CIS, volatility of stock price, financial risk management and future growth subject to risks.
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