Earnings Highlights and Review: Mobile TeleSystems' Q1 OIDBA and Free Cash Flow Rose Y-o-Y
Research Desk Line-up: xG Technology Post Earnings Coverage
LONDON, UK / ACCESSWIRE / June 12, 2017 / Pro-Trader Daily publishes post-earnings coverage on Mobile TeleSystems PJSC (NYSE: MBT) ("MTS") following the Company's posting of its financial results for the first quarter fiscal 2017 (Q1 FY17) on May 23, 2017. The Moscow, Russia-based Company's operating income before depreciation and amortization (OIBDA) and free cash flow grew on a year-over-year basis. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Earnings Reviewed
During the quarter ended on March 31, 2017, MTS reported total revenue of RUB104.68 billion, which came in below RUB105.87 billion recorded at the end of Q1 FY16. The Company attributed total revenue marginal decrease in revenues to shorter quarter than last year due to the leap year.
The telecommunications Company's profit attributable to its owners fell to RUB12.48 billion, or RUB6.30 per diluted share, in Q1 FY17 from RUB14.51 billion, or RUB7.29 per diluted share, in Q1 FY16. Moreover, the Company's profit from continuing operations for Q1 FY17 came in at RUB12.60 billion, or RUB6.30 per diluted share, compared to RUB14.97 billion, or RUB7.45 per diluted share, in the year ago corresponding period.
Operational Metrics
For the reported quarter, the Company's selling, general, and administrative expenses were RUB23.26 billion compared to RUB22.94 billion in Q1 FY16. The Company's operating profit increased to RUB21.72 billion in Q1 FY17 from RUB21.63 billion reported in the prior year's same quarter. Furthermore, adjusted OIBDA for Q1 FY17 came in at RUB41.85 billion, rising from RUB41.12 billion reported in Q1 FY16. Furthermore, OIBDA margin improved to 40.0% in Q1 FY17 from 38.8% in Q1 FY16.
The Company's subscriber's base increased to108.8 million in Q1 FY17 from 106.9 million in Q1 FY16.
Segment-Wise
MTS' Russia segment reported a 0.9% growth in total revenues in Q1 FY17 to RUB97.14 billion from RUB96.30 billion in Q1 FY16. The segment's OIBDA grew to RUB39.52 billion, or 40.7% of the segment's revenues, in Q1 FY17 from RUB38.58 billion, or 40.1% of the segment's revenues, in the previous year's same quarter. Moreover, the segment's net profit for Q1 FY17 stood at RUB12.35 billion, or 12.7% of the segment's revenues, from RUB15.00 billion, or 15.6% of the segment's revenues, in Q1 FY16.
Ukraine segment's revenue stood at RUB6.17 billion in Q1 FY17 versus RUB7.99 billion in Q1 FY16. The segment reported adjusted OIBDA of RUB2.82 billion, or 45.8% of the segment's revenues, in Q1 FY17, rising from RUB2.35 billion, or 29.4% of the segment's revenues, in the prior year's comparable quarter.
The Company's Belarus segment's revenue came in at RUB5.21 billion in Q1 FY17 compared to RUB5.38 billion in Q1 FY16. Moreover, the segment's adjusted OIBDA for the reported quarter stood at RUB2.44 billion, or 46.9% of the segment's revenues, versus RUB2.46 billion, or 45.7% of the segment's revenues, in the year ago comparable quarter.
In Q1 FY17, Armenia segment's revenues were down to RUB1.56 billion from RUB2.16 billion in Q1 FY16. Additionally, the segment posted adjusted OIBDA of RUB646 million, or 41.4% of the segment's revenues in Q1 FY17 from RUB857 million, or 39.7% of the segment's revenues, in last year's same quarter.
Revenues in Turkmenistan segment also fell to RUB1.10 billion in Q1 FY17 from RUB1.43 billion in Q1 FY16. The segment reported OIBDA of RUB387 million, or 35.3% of the segment's revenues, in Q1 FY17. Compared to RUB510 million, or 35.6% of the segment's revenues, in Q1 FY16.
Cash Flow & Balance Sheet
During the first three months of FY17, net cash provided by operating was RUB33.30 billion compared to RUB39.08 billion in the prior year's comparable period. The Company's free cash flow increased during the reported quarter to RUB22.87 billion from RUB20.53 billion in Q1 FY16.
At the close of books on March 31, 2017, MTS had RUB25.35 billion in cash and cash equivalents versus RUB18.47 billion at the close of books on December 31, 2016. The Company's borrowings were RUB230.53 billion as on March 31, 2017, compared to RUB237.11 billion as on December 31, 2016.
Outlook
MTS's management reiterated the group revenue outlook range of +2% to - 2% growth for full year FY17. The Company also confirmed its FY17 Group OIBDA outlook growth rate range of +2% to - 2%. Furthermore, the Company expects reduction in CapEx to RUB 80 billion in full year FY17.
Stock Performance
At the closing bell, on Friday, June 09, 2017, Public Joint-Stock Company Mobile TeleSystems' stock was marginally up by 0.11%, ending the trading session at $9.45. A total volume of 1.77 million shares were traded at the end of the day. In the last six months and previous twelve months, shares of the Company have advanced 6.90% and 5.59%, respectively. Moreover, the stock gained 3.73% since the start of the year. Shares of the Company have a PE ratio of 10.76 and have a dividend yield of 8.47%. The stock currently has a market cap of $8.77 billion.
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