Russian mobile operator MTS reports 76.2% y/y slump in Q1 net profit

div classBodysc17zpet90 cdBBJodivpReuters – Russias biggest mobile operator MTS on Wednesday reported a 76.2 yearonyear drop in firstquarter net profit to 3.9 billion roubles 62.9 million, which it blamed in part on higher interest rates. p

pMTS said in early March, days after Russia sent tens of thousands of troops into Ukraine, that “current and potential external factors beyond its control” may impact its operations and financial results.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pRussia hiked interest rates to 20 after unprecedented Western sanctions before two cuts to leave the key rate at 14. MTS said profit was also negatively impacted by the “revaluation of securities in the current macroeconomic environment”. p

pMTS did not provide forecasts, but said group revenue increased by 8.5 to 134.4 billion roubles, while operating income before depreciation and amortisation OIBDA was also higher, up 2 to 56.5 billion roubles. p

pPresident and CEO Vyacheslav Nikolaev described the results as solid and said the company was focused on ensuring daily business continuity and remained confident in its ability to navigate challenges. p

pMoscowlisted shares in MTS were 12.8 higher by 1408 GMT, having leapt more than 20 earlier in the day after its board had recommended a dividend of 33.85 roubles per share. p

p“The previous threeyear dividend policy completed at the end of 2021,” MTS said. “Adoption of a new dividend policy has been postponed for the time being.”p

pNikolaev said MTS had highpotential digital business lines and a resilient core telecoms business that meant it would continue developing long term. p

pMTS is one of several Russian companies developing services beyond its core business, including MTS Bank, ecommerce and streaming service KION. In December it signed a deal to acquire biometrics company VisionLabs.p

pKommersant reported last month, citing sources, that MTS has been forced to indefinitely postpone the sale of its tower assets, although MTS said it was continuing to look at different scenarios and was in contact with potential investors. p

p1 62.0000 roublesp

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pp Reporting by Reuters editing by David Evansp

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