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
Tue, Sep. 20, 1:43 PM
- Mobile TeleSystems (MBT -0.7%) has acquired 100% of a regional asset of mobile operator SMARTS OJSC to shore up its presence and spectrum holdings.
- The acquisition, of SMARTS-Yoshkar-Ola, cost 41M rubles (about $632,000), including debt of 27.7M rubles, and is handled through MTS' wholly owned subsidiary Telecom Povolzhye. The SMARTS unit is active in the Republic of Mari El.
- The deal will not only build MTS presence in Mari El but add spectrum of 14.8 MHz in the 1800 MHz range, helping MTS further develop its LTE networks.
Thu, Aug. 18, 8:35 PM
- Mobile Telesystems (NYSE:MBT) fell 3.6% today after it posted Q2 earnings that were slightly weaker than expected amid tough competition.
- OIBDA fell 4.3% to 40.89B rubles (OIBDA margin of almost 38%), while group revenue rose 5.3% to 108.1B rubles amid "strong retail sales; stable service revenue despite ongoing weaker usage in certain mobile market segments; growth in B2C home Internet and pay-TV markets; and growth in Ukraine through the steady adoption of 3G data services."
- Competition has a "sustained impact" on effective pricing, said CEO Andrei Dubovskov, and combined with macroeconomic volatility dampened results.
- Fixed-line revenues fell 2.8% to 15.3B rubles, while total revenue in Russia rose 3.3% to 97.4B rubles (90% of total).
- Free cash flow was 24B rubles to date, up 22% Y/Y. Capex came to almost 40B rubles.
- For 2016, it now sees revenue at 2-3% growth, and expects OIBDA to fall 4% mainly due to the sale of UMS. Group capex is affirmed at 85B rubles.
- Press Release
Thu, Aug. 18, 8:45 AM
Fri, Aug. 5, 11:18 AM
- Mobile TeleSystems (MBT +0.9%) is getting free and clear of its joint venture with Uzbekistan, selling its 50.01% stake for a "symbolic price," Interfax says.
- That comes amid a series of investigations by the U.S. and other countries of the three mobile operators in Uzbekistan (MTS, Telia, VimpelCom) in a bribery scandal involving the daughter of Uzbek President Islam Karimov.
- MTS had provided services through a subsidiary, Uzunrobita, under the MTS Uzbekistan brand. But the unit had its license suspended on charges of unpaid taxes in 2012, and went bankrupt. MTS then resumed service in Uzbekistan in December 2014 with the UMS joint venture.
- All the staff of UMS with Russian citizenship have left Uzbekistan except the CEO, Interfax says.
- Losses could come as high as 45B rubles ($688M), almost 9% of MTS overall market value.
Mon, Aug. 1, 10:39 AM
- The board of Mobile TeleSystems (MBT -1.5%) has called for higher dividends for the first half, in a decision announced today.
- It's recommending that stockholders approve semiannual dividends of 11.99 rubles per ordinary share (23.98 rubles per ADR) -- a total of 23.96B rubles (about $360.5M).
- That's an increase from 5.61 rubles per ordinary share (11.22/ADR) from the first half of 2015. It's already paid 14.01 rubles per ordinary share (28.02/ADR) so far for 2015.
- The board set Sept. 30 for an extraordinary general meeting and recommended a record date for the dividend of Oct. 14.
Fri, Jul. 1, 7:08 AM
- June monthly performance was: +5.97%
- 52-week performance vs. the S&P 500 is: -20%
- $0.28 in dividends were paid in June
- Top 10 Holdings as of 5/31/2016: CNOOC Ltd (OTCPK:CEOHF): 4.37205%, Gazprom PJSC ADR (OTCPK:OGZPY): 4.00976%, MMC Norilsk Nickel JSC ADR (OTCPK:NILSY): 3.5522%, PJSC Lukoil GDR (LUKUF): 3.21156%, China Construction Bank Corp H (OTCPK:CICHF): 2.65871%, Chunghwa Telecom Co Ltd (2412): 2.12161%, Industrial And Commercial Bank Of China Ltd H (OTCPK:IDCBF): 1.96586%, Ptt PLC DR (OTC:PUTRF): 1.57664%, Mobile TeleSystems PJSC ADR (MBT): 1.54441%, MTN Group Ltd (OTCPK:MTNOF): 1.54063%
Thu, Jun. 2, 7:46 AM
- May monthly performance was: -6.47%
- 52-week performance vs. the S&P 500 is: -21%
- No dividends were paid in May
- Top 10 Holdings as of 4/29/2016: Gazprom PJSC ADR (OTCPK:OGZPY): 4.41%, CNOOC Ltd (OTCPK:CEOHF): 4.22%, MMC Norilsk Nickel JSC ADR (OTCPK:NILSY): 3.44%, PJSC Lukoil GDR (LUKUF): 3.31%, China Construction Bank Corp H (OTCPK:CICHF): 2.47%, Vale SA (VALE3): 2.02%, Chunghwa Telecom Co Ltd (2412): 1.98%, MTN Group Ltd (OTCPK:MTNOF): 1.93%, Industrial And Commercial Bank Of China Ltd H (OTCPK:IDCBF): 1.87%, Mobile TeleSystems PJSC ADR (MBT): 1.52%
Tue, May 24, 7:20 PM
- Mobile TeleSytems (NYSE:MBT) says it's planning to install femtocells on carriages in the Moscow Metro, starting by the end of Q1 2017.
- That means offering its voice, SMS and mobile Internet on all trains, available to the company's subscribers at no extra charge. It currently offers voice services in stations.
- The move comes via a deal with Wi-Fi provider Maxima Telecom. With the cells connected to Maxima's network, stable 3G services will be available in all tunnels of the system.
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
Thu, Apr. 21, 3:32 PM
- Wireless operator Mobile TeleSystems (MBT +0.5%) is teaming up with Samsung to open branded retail shops in Russia.
- The company plans to open several dozen Samsung-brand mobile shops in key regions, starting with St. Petersburg, Novkuznetsk, Voronezh, Chelyabinsk and Yekaterinburg.
- The shops will focus on higher end gear -- costing more than 15,000 rubles (about $225) -- that have features such as bigger screens and LTE capability.
- Now read Mobile TeleSystems: Reports 2015 Strongly... Waiting For Dividend Announcement In April »
Mon, Apr. 11, 11:33 AM
- Mobile TeleSystems (MBT +4.4%) board recommends dividend of RUB14.01/share or RUB28.02/ADR to shareholders on record of July 5.
- The company under new dividend policy targets annual pay out of RUB25 - RUB26/share (RUB50 - RUB52/ADR) setting minimum target of RUB20/share or RUB40/ADR for 2016-2018.
- The dividend will be paid on semi-annual basis.
- The board is evaluating option of share repurchase to the tune of RUB30B to be spent over three years, subject to approval of board.
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.
Mon, Mar. 21, 9:13 AM
- Mobile TeleSystems (NYSE:MBT): Q4 Adjusted OIBDA of RUB 43.5B
- Revenue of RUB 113.33B (+5.7% Y/Y) beats by RUB 760M.
Fri, Mar. 11, 10:14 AM
- Russian telecom Mobile TeleSystems (NYSE:MBT) is up 3.2%, rebounding from a downgrade by Citigroup.
- Shares fell 5.7% yesterday. Citigroup had cut its rating to Neutral, with a price target of $8, just 3.6% over Wednesday's close of $7.72. They're currently trading at $7.51
- Moody's has placed its ratings of MTS on review for downgrade, following its action a week ago to put Russia's government bond and issuer ratings on review for downgrade among further declines in oil prices and "heightened vulnerability" of Russia's public finances.
- The ratings agency is reviewing the telecom's corporate family rating (now Ba1) and its probability of default rating (now Ba1-PD).
Fri, Mar. 11, 9:17 AM