MTS reported quarterly revenue growth of 5.8% with a decrease in the subscriber base

“Kommersant” got acquainted with the financial statements of MTS under IFRS for the first quarter of 2023. Quarterly revenue amounted to 139.6 billion rubles. (+ 5.8% to the indicator for the first quarter of 2022), operating profit – 29.2 billion rubles. (+ 9.5%). At the same time, capital expenditures for the quarter, according to the company, more than halved to RUB 17.4 billion. (- 53.5%). MTS explains the fall by the fact that in the first half of last year it massively purchased equipment, and at the beginning of this it was mainly developing the digital ecosystem.

The driver of revenue growth MTS calls the growth of income from financial advertising, telecommunications and media services. The majority of the group’s revenue comes from communications services in Russia: quarterly revenue in this segment grew by 3.6% yoy to RUB 104 billion. At the same time, MTS admits that falling sales of phones and accessories “continues to limit revenue growth”, and also reported a decrease in the subscriber base in Russia (from 80 million to 79.8 million).

Vadim Krasnikov