Mobile TeleSystems PJSC (NYSE:MBT) Q2 2019 Earnings Conference Call - Final Transcript

Aug 20, 2019 • 11:00 am ET


Mobile TeleSystems PJSC (NYSE:MBT) Q2 2019 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, welcome to MTS Second Quarter 2019 Financial and Operating Results Conference Call. I will now hand you over to your host Ms. Polina Ugryumova, IR Director. Madam, the floor is yours.

Polina Ugryumova

Welcome, everybody, to today's events to discuss MTS second quarter 2019 financial and operating results. As usual, I must remind everyone that except for historical information, any comments made during this call may constitute forward-looking statements. Important factors could cause the actual results to differ materially from those contained in our projections or forward-looking statements. These, in turn, imply certain risks, a most thorough discussion of which are available in our annual report and Form 20-F or the materials we have distributed to date. MTS disavows any obligation to update any previously made forward-looking statements spoken on this conference call or make any adjustments to previously made statements to reflect changes in risks. You can find copies of the presentations and materials used and referenced in this conference call, which are available on our company website.

Today's presenters are Alexey Kornya, President and Chief Executive Officer; Vyacheslav Nikolaev, First Vice President for Customer Experience and Marketing, Inessa Galaktionova, our First Vice President for Telecommunications and Andrey Kamensky, First Vice President of Finance. Now I will hand it over to Alexey to kick us off.

Aleksey Kornya

Thank you, everyone, for joining us today. I am happy to note we have delivered another set of solid results in second quarter and we are now moving further into the second half of the year from a position of strength. In second quarter, total group revenue was up 9.4% year-over-year, reaching RUB125.1 billion. We are -- also saw [Indecipherable] with all our geographic markets contributing positively. Overall group OIBDA was up 4.1% year-over-year to RUB56 billion. Excluding the effect of MTS Bank, on a like-for-like basis, revenue was up 4.5% and OIBDA up 1.2% year-over-year.

Before we go deeper into the results, I wanted to take a moment to talk about how we are realigning our organization to accelerate our digital transformation. First, we are setting up 4G sim business Verticals, Telecommunications, FinTech, Clouds and B2B digital and media and TV.

Given the importance of connectivity, we have created the new First Vice President position to head this core business. Since joining MTS at the beginning of the year, Inessa has quickly proven herself a capable leader with a fresh perspective and a laser-sharp focus on operational rigor. I am confident she is the right fit for this critical role. Second, we are strengthening our horizontal capabilities to tie the ecosystem together and empower our product teams. This includes areas like marketing and IT, as well as our proven big data expertise and growing AI competencies.

Looking forward, the horizontals will serve as centers of expertise to enable business execution in the verticals. In many cases and place, we will be directly embedded within an agile mission-based product teams. In addition, the horizontals will help nurture our digital startups. For example, in