MTS Q4 IFRS profit falls to 5.5 bln rbl, revenue up 4% to 127 bln rbl

MOSCOW, Mar 12 (PRIME) -- The profit attributable to shareholders of major Russian mobile operator MTS plunged to 5.5 billion rubles in October–December 2019 from 14.2 billion rubles in the same period of 2018, as calculated under International Financial Reporting Standards (IFRS), the company said on Thursday in a statement.

Revenue increased 4.1% to 127.1 billion rubles.

Adjusted operating income before depreciation and amortization (OIBDA) went up 1% to 51.6 billion rubles. Operating profit rose 0.9% to 27.3 billion rubles.

CEO Alexei Kornya said, “I am happy to note that in October–December we successfully carried our momentum forward from the first nine months of the year and crossed the 2019 finish line at a solid pace. Revenue for the quarter was up 4.1% year-over-year to reach 127.1 billion rubles, driven by core mobile connectivity in Russia, as well as a positive top-line impact from MTS Bank.”

For the full 2019 year, the net profit jumped to 54.2 billion rubles from 6.8 billion rubles in 2018.

Revenue grew 5.5% to 476.1 billion rubles. Adjusted OIBDA added 2.8% to 210.3 billion rubles. Operating profit rose 4.7% to 114.2 billion rubles.

The net debt widened 20.5% to 280.5 billion rubles.

“Looking ahead this year, we expect to continue to operate amid a relatively stable competitive environment. In 2020, we forecast group revenue to increase around 3%, with OIBDA remaining roughly flat while aiming for some upside. We expect capex for the year to come in around 90 billion rubles,” Kornya said.

(71.4720 rubles – U.S. $1)

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