MTS announced its financial results for the 3rd quarter of this year, reporting that its revenue increased by 16% year on year to RUB 159.7 billion. At the same time, the group’s OIBDA increased by 0.6% to 60.8 billion rubles, as can be seen from the company’s report. MTS’s 3rd quarter net profit amounted to 9 billion rubles.
Trade123 General Director Vladimir Rozhankovsky, in a conversation with socialbites.ca, stated that MTS’s report for the 3rd quarter pleasantly surprised him once again.
“Private investors have recently observed that the shares of this company have become increasingly chronically undervalued for no apparent reason; According to my estimates, this rate is already approaching 50%. Various exotic arguments are used, from the roughness of relations with shareholders and difficulties in the further implementation of its own ecosystem program, which is at the core of MTS’s profitability, to new negative external geopolitical factors,” the expert said.
In fact, according to Rozhankovsky, MTS continues to show “excellent results in both revenue and net profit.”
“In the context of the changing external situation, the MTS ecosystem continues to expand at a double-digit pace,” the expert added.
He also noted the high pace of relevant development areas, especially fintech and the finance and banking segment.
“We can already say with almost certainty that MTS dividends will remain at least at the same level, and the security will secure the features of the best dividend history of the Russian stock market and, apparently, as an investment program in the future as well. Returning to growth, investors can theoretically expect an increase in dividend yield – although it looks much higher: 16% – this is currently better than most high-yielding corporate bonds! ”said Rozhankovsky.
Sergei Suverov, investment strategist at Arikapital Management Company, agrees with this assessment.
“MTS’s subscriber base is increasing; Since the beginning of the year, it has increased by 800 thousand new users and its ecosystem base by 700 thousand customers. Revenue is growing, the business is developing successfully, the company shows profitable growth,” Sergei Suverov commented on MTS’s performance to socialbites.ca.
He believes that the advertising campaign in honor of MTS’s 30th anniversary will allow the group to increase its ecosystem customer base.
The expert also stated that the company’s claim regarding the ecosystem, digitalization and digital sales channels is justified; According to 9-month results for 2023, MTS shows strong revenue growth in all segments. Net profit for 9 months amounted to 38.5 billion rubles, an increase of 41.8% compared to the same period last year.
According to the expert, MTS is one of the stable companies in Russia.