MTS announced its financial results for the 2nd quarter of this year, reporting a 14.8% increase in revenue – it amounted to 146.7 billion rubles after the company’s IFRS report. OIBDA also grew by 22.9% year-on-year to 63.7 billion rubles, while its net profit increased by 53.5% year on year to 16.8 billion rubles.
According to MTS President Vyacheslav Nikolaev, the company continues to implement a business strategy to develop a digital services ecosystem based on a sustainable telecommunications business.
“Almost half of B2C revenue in Q2 came from ecosystem customers. “We expect an acceleration in ecosystem customer growth thanks to the expansion of the MTS Premium subscription and integration with the MTS Cashback loyalty service, as well as the new products to be launched in the second half of 2023,” Vyacheslav said. Nikolaev.
He emphasized that the company has recorded steady growth and B2B aspects. According to him, the share of the company in the communication services market in terms of the number of customers is 34%.
“I also note the increase in revenues of the AdTech direction in the 2nd quarter of 2023, which amounted to more than 46% year-on-year and amounted to 8.5 billion rubles,” summed up the Head of MTS.
In an interview with socialbites.ca, investment strategist at Arikapital Management Company, Sergey Suverov, described MTS’s significant growth financial performance as “fantastic” and said that “the company is not only one of the most stable companies in Russia, but also a growing one. “
“MTS’ stable telecommunications business is complemented by fast-growing areas such as fintech, media, and the number of ecosystem customers is increasing,” the expert said.
At the same time, the debt burden remains at a comfortable level for the company, and together it yields reliable results, according to Suverov.
Trade123 Managing Director Vladimir Rozhankovsky believes the company is showing “extraordinary numbers” due to the non-standard decision to bet on the ecosystem.
“The idea of creating an ecosystem has been realized and fully justified, nothing can stop progress now. Two new segments – B2B and B2C – have become the main segments and are now developing in parallel, the main catalysts for the growth of the company – they increase revenue, net profit and EBITDA, ”said Rozhankovsky.
He also explained that it is OK for customers to use the MTS ecosystem and there is no point in switching to another operator.
“Understanding the development logic, we can assume that the numbers will not be less strong in the next reporting period,” said the expert.