Q3 Results Signal Steady Growth for MTS Amid Market Debates
MTS reported solid results for the third quarter, with revenue rising 16% year over year to 159.7 billion rubles. The company also posted an operating income before depreciation and amortization of 60.8 billion rubles, up 0.6% from the same period last year. Net profit for the quarter reached 9 billion rubles, signaling continued profitability as the firm expands its ecosystem and services.
Vladimir Rozhankovsky, Chief Executive Officer of Trade123, told socialbites.ca that MTS’s quarterly report came as a pleasant surprise once more, underscoring the company’s ongoing resilience in a shifting external environment. He noted that private investors have recently observed a persistent undervaluation in MTS shares, estimating the discount approaching 50%. According to Rozhankovsky, a mix of shareholder relations dynamics, challenges in extending the company ecosystem program, and new external geopolitical factors have contributed to this perception, even as the fundamentals remain robust.
Rozhankovsky emphasized that MTS continues to deliver strong results in both revenue and net profit. He added that the MTS ecosystem is expanding at a double-digit pace despite the broader market headwinds. The executive also highlighted rapid progress in fintech and the finance and banking segments, areas viewed as critical to the company’s growth trajectory.
Regarding dividends, Rozhankovsky said that they should remain at least at current levels. He suggested that the security will preserve what could be called the strongest dividend history in the Russian stock market and may play a key role in the future investment program. While the market could see a higher dividend yield, Rozhankovsky noted that a 16% yield would be attractive compared with most high-yield corporate bonds in the current landscape.
Sergei Suverov, investment strategist at Arikapital Management, shares a similar outlook. He pointed to a growing subscriber base, noting an 800,000 increase in new users since the start of the year and 700,000 additional ecosystem customers. Revenue growth and profitable expansion underscore the company’s ongoing progress, according to Suverov’s remarks to socialbites.ca. He also mentioned that the upcoming anniversary advertising campaign could help expand the ecosystem’s customer base even further.
Suverov also supported the company’s strategy around the ecosystem, digitalization, and digital sales channels. He cited the 9-month 2023 results, which showed strong revenue growth across segments and a net profit of 38.5 billion rubles, up 41.8% from the previous year. In his view, these metrics reinforce the position of MTS as a stable player with a clear path to continued growth and shareholder value creation.
Across the board, the consensus is that MTS presents a resilient profile in a volatile market. The combination of expanding digital services, a growing customer base, and a strategic dividend plan contributes to a narrative of steady advancement for the company as it navigates evolving market conditions.