MTS Reports Q3 2021 Results

November 17, 2021

• Q3 2021 Consolidated Group Revenue increased 8.4% year-over-year to reach RUB 138.2 bn.
• Q3 2021 Group OIBDA increased 4.2% year-over-year to RUB 61.3 bn.
• 2021 Full-Year OIBDA Guidance was revised to growth of at least 6%, while revenue guidance was reaffirmed at high-single-digit growth, and Cash CAPEX guidance was narrowed to approximately RUB 110 bn from previously a range of approximately RUB 100-110 bn.

MOSCOW, November 17, 2021 - Mobile TeleSystems Public Joint Stock Company ("MTS" or "the Company") (NYSE: MBT; MOEX: MTSS), Russia's largest mobile operator and a leading provider of media and digital services, announces its third-quarter 2021 financial and operating results. Overall, the Company saw healthy growth in both Consolidated Group Revenue and OIBDA, reflecting solid performance in core telecom services as well as contributions from certain segments beyond connectivity.

Group Revenue increased 8.4% year-over-year in Q3 to reach RUB 138.2 bn on the back of growth in all key verticals: telecom, fintech, media, retail, and B2B cloud & digital solutions. In Q3 2021, Group OIBDA increased 4.2% year-over-year reaching RUB 61.3 bn, with significant positive impacts coming from telecom and fintech services, as well as some tailwinds from international roaming amid a limited restoration of global travel during the ongoing COVID-19 pandemic. 

Group Net Profit in Q3 2021 decreased 12.5% year-over-year to RUB 16.5 bn supported by core business performance and MTS Bank. At the same time, net profit was constrained by higher depreciation and amortization of fixed and intangible assets - reflecting the Company's deliberate investment in network development and other areas - as well as an increase in financing costs versus the year-ago quarter due to higher net debt and an evolving interest rate environment, among other factors. For the first nine months of the year, net profit increased 3.2% year-over-year to RUB 49.9 bn.

Looking ahead, the Company reaffirmed its full-year 2021 outlook for high-single-digit growth in revenue, upgraded its guidance for full-year OIBDA to at least 6%, and narrowed its guidance for Cash CAPEX for the year to approximately RUB 110 bn from previously a range of approximately RUB 100-110 bn.

Vyacheslav Nikolaev, President & CEO, commented: "MTS continues to execute at pace on our long-term growth strategy, and I am happy to note that Q3 2021 was no exception. For the reporting period, MTS reported 8.4% year-over-year Group revenue growth, with all of our business lines contributing. Crucially, more than half of the top-line upside came from segments beyond connectivity, further demonstrating the progress we are making on our journey to become a mobile-first tech company.

"We are also pleased that in September shareholders approved our strategic initiatives to separate our active and passive infrastructure into wholly-owned legal entities. These steps are fully in line with our long-term ambitions to sharpen the operational focus of our businesses as well as seek new opportunities to unlock value for investors. Overall, we continue to move forward on our key development vectors, and I am encouraged by our performance heading into the final stretch of the year. Looking ahead, I am confident we will close out 2021 in a position of strength as we continue to deliver for the benefit of all of our shareholders."

Consolidated MTS Group key figures[1] (RUB bn)

More information at: http://ir.mts.ru/investors/financial-center/financial-results/default.aspx

1 Financials for 2020 have been restated due to the deconsolidation of NVision Group.

[2] Net of cash proceeds under sharing agreement.

[3] Excluding lease obligations.

[4] Including the effects of IFRS 15 and 16.