Mobile TeleSystems PJSC (NYSE:MBT) Q2 2020 Earnings Conference Call - Final Transcript

Aug 19, 2020 • 11:00 am ET


Mobile TeleSystems PJSC (NYSE:MBT) Q2 2020 Earnings Conference Call - Final Transcript


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Dear ladies and gentlemen, welcome to the [Technical Issues]. [Operator Instructions] May I now hand you over to Polina Ugryumova, Director of Investor Relations, who will lead you through this conference. Please go ahead, ma'am.

Polina Ugryumova

Welcome everybody to today's event to discuss MTS Second Quarter 2020 Financial and Operating Results. As usual, please be aware that except for historical information, any comments made during this call may constitute forward-looking statements. Important factors, including related to the COVID-19 pandemic, could cause the actual results to differ materially from those contained in our projections or forward-looking statements. These, in turn, imply certain risks and more thorough discussions of which are available in our Annual Report and Form 20-F or the materials we have distributed today.

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 the risks. I also want to remind you that you can find copies of the presentations and materials used and referenced in this conference call on our Investor Relations website.

Today's presenters are Alexey Kornya, President and Chief Executive Officer; Slava Nikolaev, First Vice President for Customer Experience and Marketing and Ecosystem Development; Inessa Galaktionova, our First Vice President for Telecommunications; Andrey Kamensky, Vice President for Finance; and Ilya Filatov, Vice President for Financial Services and CEO of MTS Bank, who will speak in Russian and I will translate.

Now, it's my pleasure to introduce Alexey to kick us off.

Alexey Kornya

Welcome, everyone and thank you for joining us. Giving the ongoing global pandemic, I wanted to begin with an update of where we stand today before turning to our second quarter performance and highlights.

First and foremost, our guiding principles remain unchanged, protect our employees, support our customers and help society more broadly. As we said on our last call in May, the pandemic has had several major impacts on our company; most notably a steep drop in international roaming and slowdown in retail sales, and the changing risk profile of the loan book at MTS Bank. While significant uncertainty remains, we have also gained some much-needed clarity.

On the retail side, following the initial drop in sales in April, recovery kicked off in May that continued into June as social distancing eases. Our operations are now mostly back to normal. Overall, we see the market rebound continue.

On the connectivity side, traffic volatility has mostly abated, while we continue to see resilient demand on both mobile and fixed line services. While limited international travel has resumed, roaming headwinds have continued into peak summer travel season and therefore, we expect them to have a material impact on our results in third quarter. Finally, I also wanted to highlight that at global level, we are now living in unprecedented time of digital acceleration. As we look at the bigger picture, current trends only further reinforce my confidence in our two-pronged loan growth strategy.

Firstly, we are maintaining a leading network investing