MTS IFRS net profit rises 14.1% to 17.6 bln rbl in Jan–Mar

MOSCOW, May 23 (PRIME) -- The net profit of major Russian mobile operator MTS increased 14.1% on the year to 17.6 billion rubles in January–March, as calculated under International Financial Reporting Standards (IFRS), the company said Thursday in a statement.

Revenue grew 9.4% to 118 billion rubles.

Operating income before depreciation and amortization (OIBDA) went up 6% to 55.3 billion rubles. The operating profit grew 7.6% to 28.8 billion rubles.

Capital expenditures shrank 0.3% to 16.6 billion rubles.

The net debt widened 43.2% to 292.4 billion rubles.

“MTS has kicked off 2019 with another strong quarter. Growth continued in most of our core markets, supported by the sustained trend in rising consumer demand for high-speed data, as well as increased financial services activity…We also continue to move forward on our 3D strategy. Building out our data capabilities and sales channels of advanced devices provides a firm foundation for our ongoing core operational performance,” CEO Alexei Kornya said.

“Simultaneously, we are accelerating digital transformation to capture emerging growth opportunities, including in entertainment, home solutions, and cloud-based enterprise services. Finally, our new dividend policy reaffirms our long-term commitment to our global pool of investors, with the aim to pay at least 28 rubles per ordinary share, 56 rubles per ADS, each calendar year over the next three years.”

MTS upgraded its 2019 OIBDA guidance to largely flat from slightly negative on the year, while reiterating revenue guidance of more than 3% growth on the year.

(64.4156 rubles – U.S. $1)

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