MTS showed strong financial results in the 1st quarter of this year, which coincided with the announcement of the dividend payment for 2022, according to experts interviewed by the socialbites.ca note.
According to Sergey Suverov, investment strategist at Arikapital Management Company, MTS is actively developing, revenue growth has accelerated and operating profit growth has outstripped it.
“The business’s margins have increased. MTS, as always, not only looks stable, it is growing, ”says the expert.
He emphasizes that the good results coincided with the dividend announcement of 34.29 rubles per share for 2022, that is, 67.2 billion rubles. The expert adds that after the announcement, MTS shares grew by more than 5%, and the price per share reached the level of 2021.
Suverov explains such results of business with the development of an ecosystem in business.
“MTS not only focuses on the telecommunications business, which brings stability and provides a financial boost to the company, but also develops various areas of the ecosystem – tourism, entertainment, media, which enables long-term growth,” the analyst said. explains.
Sergei Popov, Managing Director of NZT Rusfond, agrees with this view.
The expert notes that the company has successfully developed third-party businesses, the number of participants in the MTS ecosystem has reached 13.9 million, which is 26.7% more than last year.
He also points out that MTS stocks give high dividend yields.
“In our market, MTS stock is one of the oldest, most stable, bond-like stocks that always pays steady dividends, so investors trust it and are used to it,” Popov adds.
A private investor, creator and author of the InvestThema community, Vladimir Litvinov, believes that the first quarter of 2023 can be called perfect for MTS.
“The company worked on profitability, reduced expenses and the cost of some services, and tripled its net profit. The cost reduction, modest operating expenses and ratio of net debt to adjusted EBITDA remained the same as last year, allowing us to continue paying dividends,” the expert says.
He claims that MTS has turned into an IT company.
“Business transformation, the development of Big Data, corporate architecture, launching new projects in various fields will allow the conservative telecom segment to expand and increase revenue dynamics,” Litvinov concludes.
On the eve of MTS announced the results of the first quarter of this year. Revenue under IFRS increased by 5.8% year-on-year to RUB 139.6 billion. OIBDA rose 2.4% year on year to RUB 57.7 billion. Net profit more than tripled year-on-year to 12.7 billion RUB.