Mobile Telesystems PJSC (MBT) 17 Nov 202020 Q3 Earnings call transcript

Dear ladies and gentlemen, welcome to the conference call of Mobile TeleSystems. At our customers' request, this conference will be recorded. [Operator Instructions]. I now hand you over to Polina Ugryumova, Director of Investor Relations, who'll lead you through this conference. Please go ahead.

event results. MTS today's financial quarter to operating and everybody, to third discuss XXXX Welcome,

start, annual must which MTS this call or of made Form our we are the to changes obligation discussion report any thorough turn, adjustments statements. risks. Before our we differ I in today. factors, forward-looking COVID-XX on spoken conference comments historical all except in Important certain distributed those our to imply more any made statements. information, reflect make is in pandemic, to materials the for on materially could This, a or forward-looking during actual related from statements projections this including previously may cause XX-F, forward-looking made remind constitute available previously risks, to any to call you results update have any about that in statements contained

Vice can on Marketing Slava Galaktionova, CEO for I you Inessa Vice always, President Development; and and find CEO; for Filatov, presentation Nikolaev, release Telecommunications; website. and Alexey Ecosystem President are: Experience, Kamensky; Customer IR As presenters Financial President President in our translate. this Vice will for Kornya, press who call and Ilya and Services for First and will Bank, of Finance; and MTS Andrey speak First First our for President Today's Russian,

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

for that we'll to quarter will our handing some for the XXXX. Inessa over and group on and thank and excited I'm has another solid then again and to up Welcome, Bank, wrap delivered everyone, report joining Ilya before I color once to telecom begin Thank for it results update. of questions. give in MTS be set will headlines you. financial us. results, will third very the highlights go then you with Slava able MTS Andrey

we delivered of contributing. likewise balanced solutions OIBDA connectivity billion. growth reach to services. increase of adjusted year-over-year the as upside. revenue cloud beyond review, X digital COVID-XX encouraged as services media, solid For OpEx up by to year-over-year as headwinds am well over FinTech, from to segments pandemic. robust in grew RUBXX new more of X.X% begin primarily a our Overall, contribution well was quarter, the group reach telecom With third X.X% Group total driven I amid outpaced banking deliver The the all year-to-date the in half than many both We combined RUBXXX and was the billion. volatility quarter, the savings positive Encouragingly, with saw by challenges service to in especially ease. as given performance, our retail in connectivity,

financial stable time, stores a profitability more the segments, Most but to international same on in cycle, and pressure also could services. particular, roaming, Russia the normal additional remain. operations, returned to relatively Our environment. and the the higher micro most in notbaly, economic challenges our uncertainty, At put level Bank of exposed mostly which MTS resumed in macro in BXB overall decline

continue on also progress We transformation make to plan. our

have new in laid and the St. we projects Tier cloud, MTS are recent for -- in Overall, the pilot have and leader a commercial outside have as we for President deploy are such happy artificial Let at intelligence, the Russia, Canonical for strengthened on technologies launched OpenStack. we XG, on position that Petersburg, you few continue to module you to me highlights. new role. joining we year recently proven Vice sector, partnering continue with intelligence, for pace we In center give In CLB the a teaming defining path rollout. artificial stakeholders with the key take future the next-generation out Charmed engage execute we up announced AI of to a our of to strengthen we data and in to Alexander X.X to position partnerships ago. forward X we In a major ahead strategy on a

fundamental will As you of customer digital capture experience in pillars: I system first, the will catch foothold over and upside. ever recall, Slava, second, we be there more it telecom digital have and a update. confident strong than hand that, With wave. make give are to Russia; a the to X best who Today, a we are some that

has closely. good are digital MTS. and making KPIs Alexey, unprecedented as for progress track the been many globally we good well both Thanks, and year afternoon, as against everyone good XXXX uptake, an us. for we joining to morning of Overall,

a share me few. Let

First and X than more across These who more million are consuming users. now and X multi-product are service media foremost, reached customers we've FinTech. telecom, than

MTS registered increase size by a For month total that than And continue keeping passing our the the includes XX% year-over-year. seeing users our users, already And off year-over-year significant targeted who uptake. launch. we MTS to are surging threshold. over have MyMTS XX% of reference, our that's customer by not a XX% bit those saw program, over care cost we Digitizing Premium launched also are gain with monthly And that going also million X with In helps million. traction it to automatically to up X.X Today, we App In qualified further. highly subscriber adoption mind good which robust after see effective the we of a boost penetration has doubling around start for only Cashback, of our we in under channel bundle, second marketing. QX, potential with around with high-value efficiency, Engagement more a this overall to ecosystem provides spending we active users forward, we summer. segment, of users reached but loyalty mobile base.

already a quarter-over-quarter. quarter-over-quarter of momentum And QX. TV. it's net even breaking up XXX,XXX, alone, further, top In Turning more impressive. users saw in adds. down we Viewership MTS very from impulse exceptional XX% that the to solid seeing additional increase. gained In OTT XX% was we growth on We're robust QX, by

capture moving base full some recently revamp app at to stable entertainment MTS steps nearly a of banking in-home market. At force the app are At our QX, million user-friendly taken our the also mobile remains We've we provide some users. to had So volatility. more end we despite to customer experience. economic Bank, and of full-featured X.X

and among ecosystem Russian We approach, leading winning tracking, financial very a that's as And consumer over we're pivoting also are of offers. brand mind our towards think to ecosystem are leading and see marketing spend indicator. encouraging our we companies. bundle signs We perceived tech successfully we allocating According our share. player a top X half promising

in-house. largely are progress we also library, making Finally, revamping which we our app on developed

login our BXB that, consistent We a hand are over update. app more than This With interface models and XX it user our adding to Inessa portfolio. apps. fully of significantly across telecom enhances modular let payment by providing experience to the me and a for

for Slava. Thank and you, quarter connectivity. another was core MTS QX strong

from with particularly of of reflects to bridged believe a that we me year-over-year. Let the mobile. business. pandemic revenue service performance rolling loss impressive from Wireless successfully strength the reach start restrictions. related resulted due gap accelerated QX the we That's growth solid underlying travel seasonality the Notably, X% roaming international and to

Furthermore, through new travel, expect large Looking some anticipated that in optimism the so rollout to recover we the easing year. upcoming of ahead, roaming to gives for the headwinds cautious QX end the is historically see a quarter us vaccine year.

That's visitors. and subscribers fully have longer. XX.X reflects see to These us importantly, resumed. stories on which Most rebounded as in our with the Russia XX the mobile customer months to X-month for continue to high-value who In healthy million dynamics retail QX, impact Turning ongoing are the below we base. a part base. iterations per-COVID or level, subscribers in bit all in been

We our structure market in conditions. also continue to refine line evolving with tariff

new to migrate data we with unlimited generous For attractive from an tariffs offering example, customers are point. plans at price caps by encouraging

we overall, QX. and revenue about mobile good So feel performance subscriber our in

fixed quarter revenue we line. enjoyed we closed X.X% In and dynamics, QX, Turning year-over-year. robust the with up to

year-over-year. holding quarter-on-quarter. up a carried currently, towards consumer at a is solid net XXX,XXX which X.X% steadily momentum telephony, line fixed QX revenue in secular with broadband, we decline, adds was around And Excluding out

and powerful in customer connectivity see tool cementing relationship. growth We continue, a we some expect this as to

with consumer remote we becoming process. exceptional online sales season. In saw that recently were year-over-year. authorization Russian than impact situation performance up up a which On milestone a by SIM the health activation reached a in following declines year-over-year. level the accessories, QX. QX, X% to continues in saw could That and said, traffic we returned the retail nationwide more nearly And the evolve, uncertainly side, launch operator epidemiological to which with major devices the of we as XX% That sales supported remains spending to first during fully and holiday e-comm,

robust year XXXX Overall of briefly has vertical BXB for in we to the cloud to year-over-year. turning digital And the acceleration. our XX% see next-generation was revenue demand QX, solution and in digital Finally, up services. segment. been continue

alone well. as double-digit business cloud XX% IoT than saw growth Our in revenue with performance more solid

sense, to an by improve facilities major they not commitment bring quality BXG business access our breach that driven in social only up contracts revenue help reaffirm highly connectivity. good was largely Finally, year-over-year, and digital XX% impressive to device the make online. was projects to Those

to that, and for So it me with banking update. Ilya hand let

Inessa. you, Thank

uncertainty. from of the be recovery impact despite third following market period The quarter the proved a to ongoing pandemic in the FinTech negative

previously banking in industry the the Russian decline QX. demand discussed, faced we beginning credit steep As of for at products a

issuance industry end of demand returned to of loan Consumer by early had by July, by early precrisis recovered However, the May, the fully levels. MTS Bank in had signs and saw recovery, QX.

XX.X% grew gross the up year, past to portfolio, up the the the Over particular, XX% with RUBXXX in total loan RUBXXX to retail XX.X% gross billion. portfolio and billion, bank's reach loan assets

During net to from as Cost versus of reflects in the the seen for X overall the as the growth Bank retail in increased for net saw QX. year gross first months cost X.X%, to billion, the reflecting loans we in portfolio the pandemic, the portfolio second of MTS loan of was decline base in increased Overall, loss the period X%. to The XX.X% in the loan the risk The environment a due in loan income of RUBXX.X versus normalization second in million significantly during macroeconomic portfolio third well million In slowed. loan below loan income from QX. Net XX% high half substantial of QX, accelerate quarter. amounted interest first risk the provisions. in quarter, loan retail the provisions portfolio came growth. at the for the X RUBXXX X.X%, while share growth nonperforming RUBXXX of loss months the quarter X.X% of to booked XXXX XX.X% portfolio

to the However, with NPL to continues bank maintain conservative standing approach provisioning XXX%. at a coverage

level, comfortable including October moderate M X.X a In regulatory consolidated requirements X, terms provides the capital our which at of resource capitalization, XX.X% versus buffer. was ratio capital XX.X%, in of of regulatory as we remained adequacy minimum a cushion

a consistently executing channels to risk are on a on our strategy with focus and management developing adhering We policy. conservative digital

full As the record financial operational a result, positive net bank year, the for confident while profit achieving are will we growth. and

me a update. Now the let to Andrey for financial floor give

Ilya, retail was EBITDA Growth of by as billion. actions. investors that thank the us. from year-over-year increased retail also group strong a you. in revenue RUBXX decline to we X.X% savings adjusted saw quarter, to optimization that from remind supported telecom to Overall, end note, for well the was is want at contribution roaming service year. margin steep our in achieved as revenue, OIBDA third accretive last higher which we the despite OpEx On international reach OIBDA over

base increased year So year-over-year RUBXX.X tougher billion. Net lower constrained this of fourth as same looking as X.X% in positive this moderate Group impact than ahead, finance performance Ukraine. the from offset from by was more profit the to to core growth this noncomparable costs. profit we discontinued the At on operations net comps. business factor was in by quarter time, expect well

words on Now a CapEx. few

year-to-date, ratio continue invest X group digital the of equivalent amounted as billion to months well sales. to CapEx to first areas. year, We to heavily growth of In new a the network cash in as in our XX.X% RUBXX.X

currency. FX CapEx in large our recent driven portion is addition, have higher trends toward terms foreign allocated radio since In ruble and equipment a spending price

recall, you a have manage FX practice exposure long-standing instruments. derivative As proactively to we through

remains cash have the XXXX for net adjusting contribution When Given this around a positive RUBXX guidance our we unchanged year, from positive the fact, full this derivative for of ruble dynamics contractions at expiration CapEx year seen billion.

operations as cash flow. cash sector, free funding have some widely free Moreover, free this cash to a a cash months by in how Recently, importance have received particularly continuing DOJ metric. produced represent period. year. RUBXX.X stronger flow MTS XXXX, Free we given previous quarter this and believe flow versus always the In ago be from of billion over banking in flow as -- lending Turning We to a well cash cash substantial group base down the payout. first will excluding tracked the Ukraine. X financing dividend particular, bank, free feedback lower we generation of when flow performance in periods. year-over-year reference flow we meaningful billion have noncomparable reporting interbank. from the cash Bank a given the our the not Internally, core tax year. in included we first about Therefore, the this payments was basis, XXXX recognized report excluding former our also group increasing in and operations bank. going as In from the in indicator. amounted core key flow On supported regular of operations certain of reporting This in the recommending robust months cash FAC as fluctuations interest ex which forward, relatively was was transparency, free RUBX.X also year payment in X flow contribution this excluding

to sheet. the turning Finally, balance

debt past gains points portfolio. costs and a decrease dropped delivering by cash sheet, our gross in balance conclude, simple, established quarter, rate we solid the actions X.X%, record have Over the optimize track methodical robust bringing year-over-year, stance of financial strategic allocation material average strong in To take borrowing weighted to management interest nearly to is we third basis our to debt down. our continue XXX few a capital a and our In flow. years,

Now remarks. it let to me for his hand back closing Alexey

we managing accelerated our verticals as not resilience, year-to-date both to Andrey. three digital only core XXXX, to billion, effect beyond transformation have as and have strategically, results. operationally, OIBDA growth and to year to guidance to flat our X%, increased Thank Overall, minus when derivative in while financial including are growth telecom XXXX, light we of well you, from our maintaining our are guidance X In at instruments. are least solid the around across year-end seeing reflected that our occasion risen flat cash we well adjusted In we the our upgrading of flat, revenue visibility X% from towards and from full we the RUBXX CapEx X% of performance in

Turning to shareholder remuneration.

We slightly our have payout now dividend policy completed of regular total share. a our and outperformed for We per delivered the target ordinary RUBXX.X year.

to are on around RUBXX buyback We at also track billion. complete XXXX program our

MTS. year, this record to are billion new returning setting we over shareholders, Although for RUBXXX a

Survey. committed Finally, Institutional why executive the are Russia's proud as region in across particularly That's our companies, of with XXXX community. in investor the to one sector broader the been the best close to we leading were we Investor named EMEA have engagement public team

I to were categories. the and support, and your recognized beyond. continuing and forward We appreciate in in we Andrey, individual also now XXXX In look Polina addition, conversation #X and

up, So have we to challenges. through sum navigated

moving strategy. growth and we solid are positioned quarter, the close to are delivered well in on deliver We to forward We our third year. a

that, let it me to for with back Q&A. So Polina hand

Thank you, speakers. the you rest to Alice, thank the of and

line the aware open As slight with we Operator, be take please a there for delay up translation. for that, be let's may questions, questions.

from first [Operator Instructions] question The [indiscernible]. is

of questions the Congratulations on the I couple get have back obvious results. a queue. in I before

So of the far you I most service that going of in that faced so the revenues, away headwinds are you've wondering, of sort highlighted was now. mobile terms

expectation there currently, as of repricing terms goes another first competition as and quarter, same to far competitors time, so through wondering rational in that prices to increase again, being but being reported market, was come of in quarter. round the message the one the at the in more in a first sort who's competitive about mixed your expect plans market the whole, was So we've a of situation your I highlighting the more of

on So question. first that, please? your views My

Second the of store question terms account. in

opening with for EBITDA still sort stores question, you this them to what but you you expect give as guidance. So numbers. further to third at you of of ready to that related the term? near actually Are are managing stage in terms color closures up, And clearly please, more terms overall the in closing of

of I as far versus at on if what terms guidance line in from? -- look coming improved assumption the you just of implies seen it you've I profitability guidance you So where than sort your change. swing the the what we've EBITDA in versus seen expect was what top precisely so just wondering so today far, of more

you. third, the will second. Thank I'll answer Inessa first and the take and

competitive it As we see relatively as stable. see -- major overall competitive far challenges. don't environment, We

worth it that noting being However, some is regions prices recently. active reducing in in we quite

in it these our remain going a towards to our We volatility. those the overall forward. see guidance, in policies. don't In recently. competitive overall we potential understanding note major However, taking landscape other speaking overall as change as market relatively developments pricing guidance and developments, And would about our in environment macroeconomic competitive some situation as competitive of well for we positive like

here, -- we to in we only approach guidance our when use have towards end. enough the the period and traditional revise visibility So

Regarding the retail.

towards changing our optimization. not approach retail we're we So

of with market. So on additional and We definitely, the not situation reduce looking watching the planning capital to end we're the year, by shops.

because pretty we our to with the definitely definitely we and reported are closed going further. year, reduce plans don't we year, year, shops, And to elements during which QX it pretty some development. develop. the that is reduce opportunities have the the same In happy to how the of any and until for case we time, we'll healthy further we the results. XXX see So situation do end see we'll next At

market, will necessity the but year do be availability will we there then on inform and if the next we'll just some optimization, already. So

just follow-up? us repricing of terms I we is get you there specific have currently give to we your couple plan short go again Is as your approach that in Can to the one explicit through of XQ, in close years? can to we it as very answer an saw as past

Well, to I repricing year. for and are the recent is developments think our over on too understood, plans taking strategy what it's question guidance repricing? early and if the overall our give approach any approach, pricing next I

from Capital. is Ivan of Xtellus question next The Kim

on dwell First, please I can or Yes, same retail less? optimization. more on the subjects,

now? the in market going it of to then to question like you, the on looks standpoint, ready bit That's question. rest particular not a was are watching quite the more that what do second what that you first you retrack standpoint. optimized forward? Federal service the So but a And increase. is from Because versa bit. May they in recently regulatory the optimize from pricing, is with active it did who vice price different watching the market the is And a asking antimonopoly

could action So you factor be that do any you think take? they may future again? increasingly a Or

the take will first retail optimization. question I regarding

to how say, that we the after we there are because there develops what we QX. market. slowing -- we doing steps competitors is some our it that But just And the down. we're traffic watching sales. have time, plans traffic, definitely, summer see the on it's in so because see recovers the to some some on changes is now watching -- the we're So lead honest, how do during are be not in And on the

retail So we'll on not depends the yes? our of That relates that movement actually, on -- on situation, colleagues, the the optimization. see market

is have upgrades, pricing, authorities is factor the situation. nice and be pricing to would environment risk with no influence price And that as antimonopoly say as of they for a that far -- overall it price and a the

environment would policy. wishing, So and say that is least a in at competitive but bigger we regulation are overall factor than I pricing

but seen not price market, and have competitive overall reasonable limitation rather competition. towards the we major So being in pricing the situation the

factor market, overall pricing policy. We being so for the that major players the have four aggressive in

The next Vengranovich Capital. question from Renaissance is Alexander of

on my from ecosystem side development. Two questions

into a question MTS different first Premium is the the you MyMTS mind So segments? your within Banking wanted to of it's sort how not much this of the Solutions, And you ecosystems, a penetration technical. Cashback, -- -- different talking mobile split into in the just and subscription explain So accounting other revenue? App, you how target between Is segments? so understand the the of much X-year segment, strategy? one, in goes explain can about whatever. for of what have kind second example, And Can

So whatever you can share.

Okay.

do actual into we that reflects usage Premium of you For the to has of But tell are doing that services. methodology the advantages different question, can the that those not I of actually allocation first disclose being given subscribers. revenues

and of natural So it's flow of natural the revenues. doesn't it redistribute kind

that were XX% our million On subscribers our in ecosystem well question, subscribers can nearest we the say of and XX at targets anticipating the second period of we our strategic having XX payTV. main as subscribers were our least as FinTech million for subscribers. becoming This are

The of is Stanley. Morgan Herbst from next question Henrik

questions, -- I've actually. got a two

very Firstly, which X indeed points, strong. yes, you've X% guess, I about got which ask year-over-year. I that that look you've slightly flat growth service revenue mean, is, just from means subscriber of think, down do I headwind base underlying on your or percentage wanted service roaming, to got a I revenue mobile about trends,

that? and what's we Or we I driving data Can sounds I service roaming, to to what's usage, from about Then could maybe sort it of any which a mean, some confident COVID guess, you should as I of you seeing wanted you're business pretty sort see into nonperforming benefits et more much -- I that what's, into insights obvious, guess, underlying QX, more in follow-up go relatively of wondering about there's then sort sustainable sort So loans, reverse? your how I is terms And guess, And so of last portfolio asset looking in that you that, that going you can of assets, were the nonperforming of at -- the trend adding line speculation do increase know probably on in can see slim as is loans? anything feel you portfolio? asset been individual point, driving X% portfolio? terms the So you think and temporary. the on recent give to in the generally, about on think also on pretty just you gaps deals, sort sort press like more to of and Are confident your or X% XXXX, talk of any any you but potential cetera? our depending And as bank how where can't you in that's do thoughts revenue of growth? you business. that? can I rate your

of who thank first by managed first you all, your strong Henry, question. gap of and Actually, by subbase, So first all, question, all, asking almost first for you data. to by more penetrating using -- answered of we the very is of your definitely close roaming

the are ARPU time, fixed. service because it's have on the really that and customers to mobile good Also, the our during service, very of So those during growing. is focused important very client times quality

that helped And element. international also, some you remember, is in increase beginning closing the -- by by QX also main keeping roaming. made we by this year driven gap, price the this slightly as of actually So just

NPL related see stands our have We risk XXX%. the we as mentioned, further not currently any for do our ratio building maybe provisions. coverage we strict policy even even rate at already have significant to more and And as

right? right, to specifically relates is bank Group? with third it the how we see If portfolio guessing difference bank, this our the of The I'm TCS

also But of. generally. sort I guess more Yes,

because not focused are view industry, focus portfolio view, strong see side X in credits diverse they we in terms point they the of sense, cards, think I -- we them difference. terms in while not is mostly general are they credit of financial ourselves sector, this is the is And on industries sales are that have actively. one an financial at our of in in And active in predominantly portfolio overall, which financial and group, Well, service mix. we in TCS, more ecosystem viewing in product are services, particularly we in being our while least we being

from HSBC. is The next question [indiscernible]

I perspective would especially with plans of check with the areas coming what the the is And for that? especially and what the that the the you on outside secondly, company's see your of want your next in key to are are data year, XG what terms next CapEx with growth in, -- voice? thoughts around on

So first to the share. the behind question course, terms nothing that. next And you course, actually I But know far. XG, to to the be it's actually, factors for in the share that year, answer of too early in think of can plans of of actually, CapEx terms so

plans. So not in the

yes, strategy. our see that And for potential upside you about -- growth development -- and I much of base. potential the where from pretty areas, for we we as key see when to think growth refers we can to our growth Because talk talk ARPU strategy, we about digital areas and loyalty our customer

way beyond financial services, services and on for segment see These markets, are financial how consumed then, daily connectivity moving usage services the financial and and particularly the is traditional finance on. that reason another upside telecom. going a in through which major X a transformation BXC X are also we the are media, beyond being of where some is see focusing and segments content and we are Then consumer or So transformation we major segment.

being we here, growth. segment including So fourth see the BXG of also an Internet inclusive we cloud businesses, where cloud And platforms area services, to see Things expect is Solutions in particular, opportunity. some and

and see is are still Russia sector, this for these a in our in sector and that on as focus growth well. all we that. We believe potential growth telecom we So in strategy,

a The is from next question follow-up [indiscernible].

I wanted to follow-up on your fixed business.

showed in terms of big going the a you quarter, back acceleration product, the second fixed especially. So suddenly to broadband

level this back was for growth you X%. growth as sustainable of that But the of X%, in to comment rate sort third saw was single-digit your of foreseeable then then, quarter, the So sort future. the back mid-

to are So expecting? that I more this discounts what below bundling booking service? in fixed was sorry, has perhaps be maybe dropped the the because wondering revenue for Or aggressive consolidation suddenly mobile you -- growth in why would the SNC said you fixed together, is rate products you fixed the

Okay. than can our developing do in mid in there that second potential without growth because well, -- also of line. third quarter. expectations quarter, we in think seen refer have this business And have X% me fixed this on And our let a would to growth the effect down, fixed rates segment. good in We believe is growth and single-digit growth In on firstly, we that the networks line. the we sector falling in keep upgrading in more we see we fixed

between the quarter, difference social, how third factor second second or a was one-off connect factor quarter in with significant quarter well, there related object being say, social the second contracts social to and being -- for facilities BXG As quarter. in

that to but So second a services. continue is base, as that's effect to overall -- see contributor to see well. -- line next from And effect being we'll we'll these also see expect the we growth quarter business year high fixed

regarding maybe BXG some allocation. to Just answer Alexey this additions

it's year. government So not the effect, this contracts, like they're equal even one-off is because allocation not X the for

in the just But part pretty contract the of part. was allocated that QX. not just equal means in year, of this the through reason QX. high-growth the it's That's So that an

digit, the part saying that mid-single that? or have And something? I were for sorry, would the I Can been you where repeat I growth didn't it you been could -- misunderstood, have please think catch were if not

for of we other this business line line telephony. a Yes. fixed factor, fixed significant than was fixed it part in part line exclude decline that the growth. referring more X% showed of -- What we I If have

the think if please, visibility And future but one, went not may, Understood. on or I XXXX, plans of you price I share expecting then future the potential would because approaching on short share dropped, any one one at sort potential buybacks sort in -- smaller into more any short-term can any on be views a where of any launched how you you this you the follow-up, buybacks? stage? of

complete to for year, for going have -- don't this billion, for yet RUBXX and plan forward, amount any For the this was share. we we'll as going buyback plans

no are sorry, the be do between All will you that that or between How you read expect and any buybacks in plans? allocating that that right. mean I'm there or future please? deciding does answer, don't I dividends -- that

No.

policy, And always policies, depending have say, dividend and performance results we dividend the is overall follow upgrade any We and yet. step, of decided we financial these a there towards on which discretional company. not as

Citibank. Ibragimova question next is from Dilya Our of

week launched some mentioned while And I could that the ones? comment aggressive had have you are the strong take is on Again, been is MTS makes versus that last share they which the find I -- but Second appealing, feature subject, they specific the wanted management just question you if for competition. use selected on exactly maybe them apologies dwell customers which if are into to aggressive on mentioned up by is questions, could eligible on you they segments. of that out if are also And any Congratulations just to has targeted is if Do may? more what in specific on it's X the regions. users I Premium. ask First in results. comment you product? -- where tariffs, aggressive whether no expiry. could feel -- which there being like that split the

also think coming up. I segmentation plan mentioned of to they've more they have product

Just that the -- do we And color are what it -- -- with unlimited. it nothing our only is would competition tariffs specific segments? I just not to still in it's -- are -- is to confirm

-- rationale going any And quite retail have based of been appreciated. would Yes, competition? this path has the the to to or unlimited plan seems not we're have see it? retail it the been offshore back online you from growing your COVID, is past, be opposed what been online online color going easier the for So on overall strongly retail share or question requirements you as in would to identification, sales? is it maybe the forward? part year driving online now this a specifically versus do does And that due be third to sales which be And on drive -- do in would to remote you exploring off-line

users. on more month actively Okay. or X Total if was versus XX% our Premium, we've that Premium. the I'll again, MTS of total benefits, were seen answer the had one about we And engaged using users the million. provided the benefits some of as question launch, first of MTS by question users second

also XX% paying Are that. on follow-up users? a just Sorry,

Both. We did not divide.

that I be don't I course, more, Of a think naturally have number users, out of percentage but you. would specific this for paying

for well, segments. price regions from As market. however, general board. see They we that comments The being forward. is would that again, across environment Still, not looking a start in the we the me as let as price the were XX comments. But competition, benign don't specific even competitive with in in They adjustments. I And adjustment -- general that gamechanger the we the overall see quite once were see being say about stable.

regarding online, off-line. So

our of As the sales. we QX, we pandemic saw And huge mentioned, usage of a during online definitely, stimulated increase online. the

So peak, for coming general it was XX% online, in through I retail. around sales of the mean our

doubling around -- in Now and is shops almost buying overall, still almost spite online, sales the and there it's level, online. almost the on And same more were but opened headphones it's the demand it's growth. accessories so doubling. that both stable our all even through sales XX%, SIM goods yes, huge and In Xx year-on-year through staying the of percentage, by cards, are a we're

same the for have year. outlook next We

going key sure to online and So just through next for customer good play the very both one year, fully a for we channels. role doing that good client, we're online cards is are a have and SIM everything to sales of

the you in right now, mode. launch know, you as of a was pilot Regarding

But officially user just again, will as so ready we as working, it's that. every to are done, on how our be the depend and soon propose regulations, testing demand. we it in So Russia. to what quickly the we is are fully prepared regulatory there are is own who will launched wants it And how

Anna question of next The from Alfa-Bank. is Kurbatova

minor questions. I questions two have

all of First regarding your guidance...

Anna, sorry, is Can work again? line very you please does try this Polina, not your well.

Can you me? hear

are microphone. the Anna, to too you close

Can me you now? hear

Much better.

there first and it your take projections new This if second situation a OIBDA yes. the your line regarding on one, to it My account you -- guidance, for possible apologize, comment is growth the is a question into whether I And pressure is top handset. the I year-over-year with your because on give in and revenue there growth the the like of well, quarter or X challenging in was situation. the look in Belarus with relation numbers clearly mobile personally with unconsolidated enough mid-teens subsidiary well expecting the maybe while disposal NVision? of some operations --

would on the and So the market comment current any be grateful? Russian very situation

you. Thank

For the comparative a we'll GAAP, accordance it's guidance, on But this the does with basis. U.S. do consolidation of in NVision. anyway, include

report our with we'll comparable it year on So results we've basis. I like our of it a year-over-year, full have the business. disposal done Ukrainian

the had there don't we currency. see the for local the in there In XX% market. from -- major whatsoever business in As our quarter, we the major impact market third on growth in dynamics

see from and more again, OIBDA, in As growth you our could than XX% our once local reporting currency.

end the And We with there. up a business year to see in expect strong don't once again, to major disruption we our

next The from is Capital. Xtellus of follow-up Ivan question a Kim

treasury question quick stock. Yes, on your quarter

-- any that any to or action canceling that? regards So nearing are of canceling with we sort partially

our believe policy. about as according actually the -- say dividend and Actually, we to to that pay is we we possibility strategically, that now actually always does concerned answer make sense our The deliver to more it. we're payments dividend Yes. But same. cancel it

see an do not So in as we term, it the short opportunity.

[Operator America. next of Bank is Annenkov of Instructions]. Evgeny from The question

I please. have two questions,

OpEx cost related positively costs, bank. please RUBX and guards, top closures on some OIBDA. optimization, are And was of COVID like billion it potentially your cellular on Firstly, these store Can secondly, even or that you It in optimization. QX, contributed you lease on of give on seems optimization your some more rates? that more to them temporarily recurring continue the than preferential to with and details

was and reported of nice year-on-year. Bank cost a despite MTS risk year-on-year, up So actually improvement in margins

net extra think quarter So so your is assuming you can when provisions, ROE per do level no RUBX XX% reach billion income overall, do you And you sustainable? target? think

will of question the OpEx I the first optimization. take Yes. in terms

most from the also of a But of costs. course, of our negatively it's affected most we part cases, other And It's rent pandemic. cost, because of course, is retail. We the not from is the the only Of the are major were sectors, retail in to of response have by from coming and some is and some coming this this that. the payroll. which rent. Therefore, is coming the reconsider actually course, to it had payroll the

were reconsidered during the time. that major lines that's So that

for There the no to conclusion. further speakers questions, back I a hand

the There second was the answer question, one. second

we the was full report disclosure, bank of much QX terms to of about operational during that confirm that already do in as mentioned But year, result terms positive banking in second have when expect third the better We our quarter our the we the net quarter, efficiency as do a speak we the compared segment. estimate income. we the will for

define of we net estimate However, cannot of kind this on accurate the income

think I'm sustain sorry, X is lower quarters? just you to rates lease might in presidential confirm, or X

you please repeat can question? Evgeny, your

stores. My question your is leasing costs for on

beneficial QX, it to and in sustainable next be some You might said managed year? think you you in rates more potentially get QX

rates? rental the You in optimization the to referred

Yes.

Well, which carry optimization, rates, on. certain we And we rental saw think we some will kind of achieved recovery. I

in is in quarter not second saw as third However, that optimization high this we in partially and of the materiality back it quarter.

the to However, year. see for expect retail carry on next our in some we optimization do overall

So now there further are no questions.

for very much you listening. thank gentlemen, and Ladies

As usual, our call of we in on replay available the page a will this make future. near IR

not If to you MTS have out at Relations Investor hesitate reach any further any to do questions, please time.

interest are a boxes we meantime, holiday in your healthy lines everyone and and MTS In Our phone season. happy wish the and open. appreciate in

and for call Ladies you gentlemen, been your thank has This attendance. concluded.

disconnect may You now.