MTS earned about 55 billion rubles in net profit in 2023 – Kommersant
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In 2023, MTS revenue (MOEX: MTSS) (MOEX: MTSS) amounted to 606 billion rubles – 13.5% more than last year, follows from report about the company’s financial results for 2023. Net profit increased by 67.5%, to RUB 54.6 billion. Net debt as of December 31, 2023 increased by 14%, to RUB 441 billion. OIBDA for the year increased by 6.4%, to RUB 234.2 billion.
The company’s press service cites a comment from MTS President Vyacheslav Nikolaev, which states that the Fintech direction makes a significant contribution to revenue growth. According to Vyacheslav Nikolaev, over the year the retail portfolio grew by 33%, to 339 billion rubles, net profit increased to a record level and reached 12.5 billion rubles. According to him, MTS Fintech is developing as one of the main drivers of the ecosystem.
CAPEX for the fourth quarter increased by 13%, to 41.8 million rubles, for 2023 it decreased by 8.7%, to 101.5 billion rubles. Net debt to LTM adjusted OIBDA in the fourth quarter was 1.9. The net cash outflow from investing activities in the fourth quarter amounted to RUB 150 million.
Revenue from communication services last year increased by 6.5%, to 440.1 billion rubles, from banking services – by 34.9%, to 89.6 billion rubles. In total, revenue from the client sector increased by 13%, amounting to RUB 412.6 billion, B2B/G – by 24%, to RUB 153.6 billion. Also, the advertising business (Adtech) grew by 47.9% to RUB 37.2 billion.
“The main growth in the fourth quarter was provided by the revenue of MTS Bank; communication services are increasing revenue at the level of inflation,” says Timur Nigmatullin, senior investment consultant at Finam. The company’s net debt in the fourth quarter, he estimates, was the highest in at least three years, with a net debt/LTM adjusted OIBDA ratio of 1.9.
The main repayment of the company’s debt will be in the first quarter of this year – 143 billion rubles. and in 2025 – 205 billion rubles, the analyst recalls. “The company generates about 296 billion rubles per year. operating cash flow, but is forced to invest at least about 230 billion rubles of it in CAPEX – the amount of depreciation. Thus, servicing the debt while maintaining generous dividend payments may be a non-trivial task,” the expert notes.
The new language model will be tested on corporate customers, more about this in the Kommersant material “MTS will talk to clients”.
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