MTS Group’s 2023 revenue increased by 13.5% year on year to RUB 606.0 billion. This follows from the digital ecosystem’s published financial and operating results for the fourth quarter and 2023 as a whole.
The creator of the “Invest or Lose” community, Yuri Kozlov, explained that the group was able to achieve such results thanks to strong revenue growth in all segments. He emphasized that the revenue growth rate exceeded experts’ expectations and the market consensus forecast.
Thus, MTS’s revenues from communication services increased by 6.5% to 440.1 billion rubles. The expert explained the growth by the fact that at the end of 2023 the Russian government approved a strategy for the development of the communications industry until 2035; This strategy allows operators to raise communication prices above the inflation rate.
He also stated that the number of MTS ecosystem customers increased by 11.9% to 15.1 million people. “Thanks to one of the largest ecosystems in the country, MTS successfully maximizes revenue per customer, and entertainment services such as KION, MTS Music and Strings are in high demand among customers,” Kozlov said.
According to him, the company is a leader in the B2B market in Russia and successfully increases its revenue using Internet of Things technologies, intelligent communication systems and communication services under the brands MTS Link and MTS Exolve. It is stated that the segment grew by 17% on an annual basis. In addition, 30 million people attended events on the MTS Link service in 2023.
Georgy Avedikov, founder of the Investocrat community, noted that expectations that debt payments would begin to negatively affect margins, despite the increase in the key interest rate, did not come true.
According to him, the fintech sector is doing very well and its consequences affect the results of the entire group. Thus, in 2023, the bank’s personal loan portfolio grew by 33 percent and reached 339 billion rubles, while its net profit rose to a record level and reached 12.5 billion rubles.
“Alongside the good growth in revenues, we are also seeing double-digit growth in the group’s net profit; +67.5% on an annual basis. Avedikov said that in addition to increasing revenue from core activities, management control over costs also made a significant contribution.
The expert believes that one of the drivers of business growth is the flow of customers between the ecosystem and the services offered by the company.
“This is confirmed by the fact that Adtech is also showing good growth, along with growth in the Telecom and Fintech segments. “During the year, revenues increased by 47.9% year-on-year, and these dynamics may continue in the future,” he said.
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Source: Gazeta
Ben Stock is a business analyst and writer for “Social Bites”. He offers insightful articles on the latest business news and developments, providing readers with a comprehensive understanding of the business world.