MTS delivered robust financial results for the first quarter, aligning with the 2022 dividend announcement outlined by experts quoted by socialbites.ca.
According to Sergey Suverov, an investment strategist at Arikapital Management, MTS continues to expand, with revenue growth accelerating and operating profit rising at a faster pace than the top line.
“The company has improved margins while maintaining a stable trajectory and steady growth,” notes the analyst.
Suverov highlights that the positive outcomes coincided with the dividend announcement of 34.29 rubles per share for 2022, totaling 67.2 billion rubles. Following the news, MTS shares climbed over 5%, reclaiming levels seen in 2021, which underscored market confidence in the earnings story.
He attributes these results to the ongoing development of an ecosystem strategy within the business.
“MTS is not confined to traditional telecommunications. The company is expanding into multiple ecosystem segments — tourism, entertainment, and media — creating a foundation for long-term growth,” the analyst explains.
Sergei Popov, Managing Director of NZT Rusfond, shares this assessment. He notes that MTS has effectively grown third-party ventures, with the ecosystem participant base reaching 13.9 million, up 26.7% year over year.
Popov also points out the stock’s high dividend yield. “In our market, MTS is among the oldest, most stable, bond-like equities that consistently pays dividends, earning investor trust and familiarity,” he adds.
A private investor and founder of the InvestThema community, Vladimir Litvinov, considers the first quarter of 2023 a near-perfect period for MTS.
“The company focused on profitability, trimmed expenses, and reduced the cost of several services, effectively tripling net profit. Cost discipline, modest operating spending, and a stable net debt to adjusted EBITDA ratio compared with last year enabled continued dividend payments,” Litvinov remarks.
According to Litvinov, MTS has increasingly resembled an IT company in its strategic evolution.
“Business transformation, the growth of Big Data capabilities, enhancements in corporate architecture, and the launch of new initiatives across diverse fields will enable the conservative telecom segment to broaden revenue streams and strengthen growth momentum,” Litvinov concludes.
On the eve of the quarterly release, MTS reported IFRS revenue of 139.6 billion rubles, up 5.8% year over year. OIBDA rose 2.4% to 57.7 billion rubles, and net profit more than tripled to 12.7 billion rubles versus the prior year.