I Disagree With The Bear Thesis - Mobile TeleSystems Is A Tremendous Opportunity
Paulo Santos • 12 Comments
Paulo Santos • 12 Comments
Mobile TeleSystems: Too Risky Despite Low Valuation
John Zhang • 10 Comments
John Zhang • 10 Comments
Thu, May 19, 1:39 PM
- Mobile TeleSystems (NYSE:MBT) is 2.4% lower in U.S. trading after Q1 earnings where OIBDA beat expectations but per-share earnings came up short.
- In GAAP terms, EPS of 7.29 rubles was well short of an estimated 10.95 rubles (one estimate). Revenues grew nearly 8%; revenue in Russia was up 6.5%, to 96.3B rubles. "We continue to see sustained demand for data throughout our key markets, which continues to drive growth in both Russia and Ukraine."
- Free cash flow came to 20.5B rubles (up 37%); with cash flow from operations stable, the gain came as capex fell 28% to 18B rubles.
- It says the board has tasked management to consider a share repurchase program that could allocate up to 30B rubles (about $448M) for a three-year plan.
- The company reiterated its full-year guidance for group revenue growth of more than 4% (in line with expectations), adjusted OIBDA growth of -2% to 1% (vs. expected -0.6%), and cutting capex to 85B rubles.
- Press Release
Thu, May 19, 8:18 AM
Mon, Mar. 21, 10:47 AM
- Russian telecom Mobile TeleSystems (NYSE:MBT) is up 4.9% after beating expectations with Q4 earnings where revenues grew nearly 6% though operating profit fell.
- Adjusted OIBDA slipped 1.9% and operating profit fell off 17.4%. Net profit grew to 7.14B rubles from the previous 1.38B rubles, though.
- Active subscribers grew 3.5% in 2015, to 107.8M. Data traffic revenue in Russia was up 19.8% (to 77.2B rubles), and handset sales in Russia rose 37.4% (to 40.3B rubles).
- The company forecast a revenue increase of more than 4% this year, but new competition could drive core profits down. It guided to OIBDA growth ranging from -2% to 1% in 2016.
- Adjusted OIBDA margin fell to 40.7% last year.
- Conference call to begin at 11 a.m. ET.
- Press Release
Mon, Mar. 21, 9:13 AM
Nov. 17, 2015, 9:38 AM
- Leading Russian telecom Mobile TeleSystems (NYSE:MBT) is up 4.6% after Q3 revenue beat expectations by about 3% and the company raised expectations for future growth.
- Overall Group revenue rose 7.4% to 115B rubles; revenue in Russia was up 4.7% to 103.9B rubles. Mobile service was up 1% to 78B rubles; data traffic up 20.2% to RUB 20.6B, and handset sales up 58.8% to RUB 12.6B.
- Free cash flow for the nine months was RUB 29.2B; capex was RUB 73.1B. The company says it isn't making a provision for the probes by the SEC and U.S. DOJ regarding its business in Uzbekistan.
- It's raised guidance for overall group revenue and Russia revenue to more than 4% growth, and reiterated Group OIBDA margin guidance for more than 40%.
Nov. 17, 2015, 7:08 AM
- Mobile TeleSystems (NYSE:MBT): Q3 Adjusted OIBDA of RUB 48B.
- Revenue of RUB 115B (+7.3% Y/Y) beats by RUB 3.94B.
Aug. 18, 2015, 11:05 AM
- After declining a bit in early trading, Russian carrier Mobile TeleSystems (NYSE:MBT) has reclaimed the flat line after Q2 revenues fell short and profit dropped by about 22% Y/Y.
- Higher overall expenses crimped results, in particular a 30% rise in the cost of handsets even as the company slashed its own prices to attract consumers. Adjusted OIBDA fell to RUB 42.7B and OIBDA margin was 41.6%.
- Mobile service revenue in Russia rose 2.8% to RUB 72.7B; data traffic revenue in Russia was up 23.4%, to RUB 18.9B. Handset sales were up 26.7%, to RUB 7.6B.
- The company's guiding to full-year capex of RUB 92B, for planned investments in Ukraine 3G.
Aug. 18, 2015, 8:05 AM
- Mobile TeleSystems (NYSE:MBT): Q2 Adjusted OIBDA of RUB 42.7B.
- Revenue of RUB 102.7B (+3.9% Y/Y) misses by RUB 360M.
May 19, 2015, 11:35 AM
- Mobile TeleSystems (NYSE:MBT) has slipped 3.6% following an earnings report where profits declined about 14%, to 10.9B rubles, after taking a 3.5B-ruble loss on revaluation of foreign debt (more common among Russian companies this year). The earnings mildly beat expectations.
- Service revenue in Russia grew 3.6% Y/Y to 90.4B rubles, with 70.5B rubles of that in mobile (up 3.9%). Smartphone penetration reached 43.5% among active subs.
- The company said its 2014 results would allow its largest-ever dividend, recommending approval at its June 25 annual meeting of 19.56 rubles/share (40.4B rubles total).
- The company did confirm a full-year target of at least 2% sales growth and an OIBDA margin of at least 40%.
May 19, 2015, 8:12 AM
- Mobile TeleSystems (NYSE:MBT): Q1 Adjusted OIBDA of RUB 41.3B.
- Revenue of RUB 100.2B (+2.7% Y/Y) in-line.
Mar. 17, 2015, 9:00 AM
- The ruble's slide isn't sparing top Russian telecom Mobile TeleSystems (NYSE:MBT), as its Q4 profits slid nearly 92% in Q4.
- Group revenues of 107.2B rubles were still up 2.3% and beat an expected 105.8B rubles. Regionally the company saw strength in Russia (revenue up 4.1%) and Turkmenistan but still is experiencing "sustained weakness" in Ukraine amid political unrest.
- MTS also says it's taking a 5.1B ruble loss on a deposit at Ukraine's Delta Bank, which was declared insolvent March 3.
- The company has opened a (non-revolving) line of credit with Sberbank for 50B rubles.
- For 2015, MTS says group revenue may increase more than 2% while OIBDA margin will be greater than 40%. Capex expected will be about 85B rubles.
Mar. 17, 2015, 8:17 AM
- Mobile TeleSystems (NYSE:MBT): Q4 Net income of RUB 1.65B.
- Revenue of RUB 107.2B (+2.3% Y/Y) beats by RUB 650M.
Feb. 25, 2015, 8:26 AM
- VimpelCom's (NASDAQ:VIP) Q4 revenue came in slightly to the upside of expectations at $4.39B, but the firm was hit by currency headwinds in posting a net loss of $0.53/share and a net loss of $691M for the year.
- EBITDA off $1.6B was about 7% off of expectations and down organically 8%.
- "We expect the operating environment to remain difficult in 2015, however I am confident that we have the right strategy to deliver on our targets," says CEO Jo Lunder.
- Facing the effects on the ruble and Ukraine's hryvnia, the firm will switch to negotiating vendor contracts in dollars.
- For 2015, the company expects service revenue to be anywhere from flat to a low-single-digit organic decline, and EBITDA flat to -1%. EPS is expected to come in at $0.35-$0.40.
- VimpelCom had announced an agreement with MTS (NYSE:MBT) to jointly plan, develop and operate 4G/LTE networks in Russia over the next few years.
Nov. 25, 2014, 7:11 AM
- Mobile TeleSystems (NYSE:MBT): Q3 EPS of RUB 8.08
- Revenue of RUB 107.1B (+3.6% Y/Y) beats by RUB 3.02B.
Aug. 20, 2014, 7:20 AM
- Mobile TeleSystems (NYSE:MBT): Q2 EPS of RUB 10.60
- Revenue of RUB 98.9B (+1.5% Y/Y) misses by RUB 500M.
Mobile TeleSystems PJSC provides a range of mobile and fixed line voice and data telecommunications services in Russia and the CIS. It operates through the Russia Convergent, Moscow Fixed Line, and Ukraine business segments. The Russia Convergent segment provides mobile and fixed-line voice and... More
Industry: Wireless Communications
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