MOSCOW, RUSSIA / ACCESSWIRE / March 12, 2020 / Mobile TeleSystems PJSC (NYSE:MBT):
Q4 & FY 2019 HIGHLIGHTS
in RUB bn unless indicated otherwise
MTS Group - Key figures* | Q4 2019 | Q4 2018 | Change, % | 2019 | 2018 | Change, % |
Revenue | 127.1 | 122.0 | 4.1% | 476.1 | 451.5 | 5.5% |
o/w Russia | 126.2 | 121.5 | 3.9% | 472.6 | 448.1 | 5.5% |
Adjusted OIBDA | 51.6 | 51.1 | 1.0% | 210.3 | 204.6 | 2.8% |
o/w Russia | 53.3 | 53.0 | 0.5% | 214.6 | 209.2 | 2.5% |
Operating profit | 27.3 | 27.1 | 0.9% | 114.2 | 109.0 | 4.7% |
Profit attributable to owners of the Company | 5.5 | 14.2 | -60.8% | 54.2 | 6.8 | 7.9x |
Cash CAPEX | 91.5 | 86.5 | 5.8% | |||
Net debt[1] | 280.5 | 232.8 | 20.5% | |||
Net debt / LTM Adjusted OIBDA[2] | 1.5x | 1.2x | n/a | |||
Operating cash flow | 106.7 | 154.4 | -30.9% | |||
Free cash flow | 55.4 | 54.8 | 1.1% | |||
Free cash flow excl. SEC/DOJ payment & cash proceeds from sale of VF Ukraine | 73.6 | 54.8 | 34.3% |
*All profit & loss figures for 2018 and 2019 have been restated to reflect the deconsolidation of MTS's former Ukraine operations
Alexey Kornya, President & CEO, commented on the results:
"I am happy to note that in Q4 we successfully carried our momentum forward from the first nine months of the year and crossed the 2019 finish line at a solid pace. Revenue for the quarter was up 4.1% year-over-year to reach 127.1 billion rubles, driven by core mobile connectivity in Russia, as well as a positive top-line impact from MTS Bank. Group Adjusted OIBDA likewise notched up 1.0% year-over-year in Q4 to reach 51.6 billion rubles.
Altogether, in 2019 we maintained steady growth and delivered on our full-year financial targets when adjusting for the sale of our Ukraine operations. Excluding Ukraine, annual Group revenue increased 5.5% year-over-year to 476.1 billion rubles, with notable top-line contributions from promising new segments, including financial services and systems integration. Group Adjusted OIBDA came in at 210.3 billion rubles, up 2.8% year-over-year.
Beyond core business performance, we also made robust progress on our initiatives to better position the Company for long-term growth:
- Geographically, we de-risked our international exposure, streamlined our profile, and put a sharper focus on our core market.
- Organizationally, we established a matrix structure built around four business verticals-Telecommunications, Fintech, Media, and B2B & Cloud Solutions-while also appointing talented new leaders, empowering our horizontal functions, and embracing agile best practices.
- Strategically, we launched a new three-year growth strategy-Customer Lifetime Value 2.0-to build out a digital ecosystem on top of our existing strong telecommunications foundation.
- Operationally, we continued to invest in improving 4G coverage and network quality, while also moving toward right-sizing our retail footprint to drive long-term value creation.
- Financially, we took proactive steps to optimize our debt portfolio amid a lowering interest rate environment, and placed smart bets in promising new growth areas.
As a result of our performance, I am happy to note we exceeded our first-year commitment under our new three-year dividend policy, having returned RUB 28.66 per ordinary MTS share (RUB 57.32 per ADR) to investors as dividends in calendar year 2019.
Looking ahead this year, we expect to continue to operate amid a relatively stable competitive environment. In 2020, we forecast Group revenue to increase around 3%, with OIBDA remaining roughly flat while aiming for some upside. We expect CAPEX for the year to come in around RUB 90 bn.
Going forward, our strategic imperatives are clear: maintain leadership in mobile connectivity, while pursuing new growth opportunities in digital products and services. We are well-positioned for success. We have a leading position, a leading brand, and a leading team in one of the world's most fertile environments for homegrown digital businesses. We look forward to continuing to deliver for our shareholders in 2020 and beyond."
[1] Excluding lease obligations
[2] Excluding the effects of new IFRS 15 and 16
SOURCE: Mobile TeleSystems PJSC
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