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MBT Mobile Telesystems PJSC

Participants
Slava Nikolaev President & Chief Executive Officer
Polina Ugryumova Director of Investor Relations
Inessa Galaktionova First Vice President for Telecommunications
Olga Ziborova Vice President for Ecosystem Development and Marketing
Ilya Filatov Vice President of Financial Services & Chief Executive Officer of MTS Bank
Andrey Kamensky Vice President of Finance
Ivan Kim Xtellus Capital
Hnerik Herbst Morgan Stanley
Slava Degtyarev Goldman Sachs
Alexander Vengranovich Renaissance Capital
Andre Cabesek UBS
Jeffgimi the Bank of America
Call transcript
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Operator

Please standby. Good day, everyone. And welcome to the Mobile TeleSystems PJSC Second Quarter 2021 Financial and Operating Results Announcement and Conference Call. Today's conference is being recorded. And at this time, I'd like to turn the conference over to Polina Ugryumova, Director of Investor Relations. ahead. go Please

Polina Ugryumova

today's Financial to discuss Second MTS Welcome Operating event Results. XXXX and Quarter everybody to

our report Before are I call implies in information, actual in any thorough statements. any we Form materials our on that extra for we more factors certain presentation. have forward-looking also and results to make comments available except start, or XX-F Important of we a annual forward-looking from discussion made statements changes slides risks added any to have spoken the must to remind made projections differ or reflect and distributed the would during about those cause or some like this gives in could may in materially any to forward-looking obligation that constitute today. which our previously I you few contained adjustments this historical statements previously flex These MTS conference call to statements. to update made risks.

you will President, we the are presentation call. Nikolaev, delved presenters supplemental you on CEO, The webcast. also tune materials into Today's If by made website encourage following in Slava our this available and Vice Telecommunications, be phone, Vice President Development for Ecosystem Marketing. Ziborova, President Bank. Kamensky, Andrey Services MTS Vice And for Olga for and Finance. [Indiscernible] Vice Financial Inessa President Galaktionova, President and Filatov, Associate for Ilya CEO of have

Slava over kick this So off. turn to to with let that, me us

Slava Nikolaev

growth from both XX year-over-year, the and strong Overall, result quarter. we the headline per Moreover, We a Thank second pandemic. you, thanks by for territory ongoing revenue despite revenue had we in Polina. And for very challenges a X% OIBDA. everyone double-digit the call. adjusted increased to the joining entered

contributed the we're other had an segment diversifying solid saw making further basis. demonstrates beyond a conductivity. upside. the segments on all closures due retail XXXX, progress Together, a store over non-silicon group's artificially top-line well half This like-for-like performance While in of to base low in

the results Bank a was begun Our play operating reaffirming to role MTS income. OIBDA driver, center. as top-line FinTech has us in resonated key profit the largest for

from pressure We reflected margin we OIBDA from to restoration the terms roaming, COVID compression which also in for retail, with slight ahead OpEx headroom optimization. experienced and a exertion operators. quarter, foreign roaming roaming due OIBDA some In year-ago the with savings saw improved tailwind both and retail looking significant mostly -related

will in popular overall, So increasing stronger importance other in in and gradually reporting. segment be to we transparency demand and strong performance Due of the Telecom even increasing verticals, ecosystem areas. our

more scale the the you well for in for rapid And revenue year-over-year we'll the year-over-year can nearly than On QX, of than in In dynamics last XX% growth in standalone revenue XX% grew reach as XX% speaking than XX% FinTech. more of in months. retail, the slide, and see the media, more first XX cloud as of growth, our year, digital solutions. businesses half

appropriately our a that businesses many reached the the past Turning valuation and perception several taken We've market. the a of as Company. businesses at into dive review closely valued not in the over deep management We've comprehensive different sectors. market as conducted the team has to conclusion strategy of of each multiples MTS by well look the our months, of

We to that. address are several taking steps

each level ensuring but and structure way the right business a the improving is also foremost, we market the feasibility. fit-for-purpose business only has and model not run First Company by of management

verticals, is are and the FinTech, facing In one hand, retail defined. media, ecosystem terms already organization consumer clearly of our relatively structure, on

tower the within Board legal restructuring Board whereby Therefore in initiated owned propose MTS. our the the entities. consultation digital we'll a remain wholly and On infrastructure have process thing assets infrastructure the and other assets with of into has MTS certain this extensive that hand, Directors, to embedded of we management the -- separation fully

are legal of enhancing by early sharpening delegating power how shareholders. plus XXXX future may accountability. decision-making business Moreover, have each measure believe team. completed this improved and against We improve authority both firmly and of subject synergies, to the meeting formalizing by network to at be efficiency focus and benchmark we management inter-group services change assets us separation subsequent of approval will help relationships general cross-business ecosystems and leadership targeting improving execution by market, the the further We board approval

the these unlock scale Due Bank's In sense words MTS FinTech potential the are makes significant sufficient few steps and the be infrastructure, multiple candidates think scale we moved side, could through markets. opportunistic we in regarding successful of value track passive A more coverage. to one has that of shareholders. tower the reaching our directly getting on And the we answer on it for MTS this the are term, longer been to trajectory to also businesses capital record, see first growth believe environment, consolidation. terms Over consideration. market for parity assets. have Ultimately, the of it be signaled, may towards be closer to there

Services. side, proposed together has multiple separation into We benefits. think infrastructure On would assets the cloud our a XXX% entity, combine and wholly-owned center MTS potential this active fixed-line the data Web approach

extensive Edge that has data market capabilities advantages the combined cloud solutions in network the with an future as of advanced of development occupy cloud standalone infrastructure position. could context exceptionally business First,

in Second, Solutions. Cloud development -- speeding up time-to-market Business our developing in

for with clear MTS. company's time, picture board for private pursue opportunities. web be to fifth, customer services of external network we including provider If I at become growth also long-term target and MWS next-generation crystallization. business, the in believe seasoned early shareholders, traditional this proposal. we provider and telecom Third, begin that more Russia's standalone a relationships, management creating the same and infrastructure incentivizing optimization Ultimately, stage, Fourth, licenses XXXX. can on At the would efficient optionality by with to infrastructure pure and management plays overall will operations And business remain solutions. management. our cost value driving want cloud subscriber MTS to approved leading of services

from subject Board nothing Shareholder service of ahead, point as drive the MTS strategic are update. remain Moreover, we our seek approval. view, All of our key value. ecosystem looking the provider. ecosystem customer focus me will client-facing of core on to to And it plans the would to digital change. let these -- more hand lifetime overall for remains note, an customer's And that Ugryumova

Olga Ziborova

I'm happy report ecosystem. Slava. we QX, performance across saw in you, Thank solid the to

reaching declines year-over-year, customers, ecosystem MTS a revenue. XX% a group [Indiscernible] least actively who on and XX% clients million. Let just few me deliberately reaching of Ecosystem highlights. X.X are share It or around [Indiscernible]. as Non-core increased consolidated by XX% quarter-on-quarter, revenue grew the products using clients

simply second customer QX as end both quarter. reaching In opposite increase addition, has in the and doubled reporting period. The during EBITDA subscribers X.X Premium per QX MTS the number products of

model indicates to Following engagement year. multifamily also shift be seeing focused it's video. rewards MTS UP-based an Most in importantly, a this each will ecosystem dynamics healthy loyalty on [Indiscernible] I program. equitable

today good to sustained sports Its SME times few continued and with our Saddam, towards foremost robust For contempt users or those three list, Visium pilot in in result associates a growth. in clients. year-over-year containers, is experiencing MTS ecosystem project, [Indiscernible] million [Indiscernible] revenue the users times to nearly to example, well shows externally, three and additional a BXB times pure on NPS increase advertising platform, both up major XX [Indiscernible] Marketer, Inessa usual of In long store Premium businesses, QX [Indiscernible] climb. production as it MTS year-over-year, that, to let retail and XX give These the in to ship pass updates. MTS top times campaign Silicom H. and With XX the platform tune Shammo slower and me subscription-based for five higher quarter

Inessa Galaktionova

consumption, reflecting the than In Thank X.X% continues in service At regional XXXX. Moreover, you, overall seen as same roaming level year-over-year increasing growth dynamics. more base QX, QX tariff time, in Russia international our revenue below in well XXXX. last subscriber Polina. as XX% remained grew to the in continued mobile, data revenue

XXXX. restrictions, XX%, BXC expect around travel Delta roughly revenue due inorganic of came although wireline new XX very the an Given from robust and well released of of roughly from saw businesses. in full-year the X acquired we in the impact international we below billion X/X In robust to roaming [Indiscernible] to consolidation virus telephony remain growth ongoing lines, the

decline to factor, BXC the Overall, grew revenue that as million, X was X.X% up Excluding up revenue year-over-year organically. year-over-year. ticked telephony subscriber aggregate base just X% and fixed-line

Turning to BXB.

nearly on firing devices cylinders digital all growing likewise revenue High-yield year-over-year than with well. the and year-ago Subscriber’s is solutions period. in versus XX% a quarter performing increased QX. businesses more cloud Our are

year-over-year. times was As an Olga as service five mentioned, revenue up marketing a exceptional

to continuing important Additionally, facilities platform into in greatly closed our BXG, office, telecom of Multiregional to acquisition which and a XX% products exposure in QX Russia's also that TransitTelecom. I largest MTT for up make private progress that high year-over-year. integrated we're strategic customer fixed-line IoT. commercial for wanted to This [Indiscernible]. enhanced services. [Indiscernible] XXX% key is growth was software authorities good social highlight we And revenue

Polina Ugryumova

major market in At that global is telecom going capture incremental a in now the leader Communications industry. level, segment Unified growth MTS Russia revenue will space the and is forward. And to position for the

let Ilya finances it a that, to with update. So (ph) for me hand

Ilya Filatov

QX. investments continued successfully very to our paying in a (ph). Thank momentum QX from here forward, performance, Polina you, forward I'm report that overall, strong delivered

results time?. X% book increased And I'd in of issue, Operating billion? In half deferred over terms Inlay or there's X.X the for to net them XX%. income bump X developments. form [Indiscernible] for in first more of and for by the highlight XX% of debit MTS reach year, the Bank reached rowes the was of in like billion bonds also worth travel

level chain leading copies. clients. for the trade will the is national of In finance X investing offer BXB can now explain of particular, fluctuate with third, and we channel we blockchain loans desk service, supply And majority accounts sectarian, Second, of funnel volume and and will platform a have finance. to reached in XXA digital the July,

the contribute to loan What QX, the doubled being in income year-over-year than for Moreover, base deep of year When billion drive, these of net X X% XX% income overall $X year-over-year. growth And of fee [Indiscernible]. decreased of Cost little nearly existing net full increase growth more in to interest to [Indiscernible] the them.? for the year-over-year in of in months grown and the significantly first from region. the both a X.X% a portfolio retail with ultra-flip, commission grew core XX% significantly the half of below portfolio QX. little year-over-year XX% availability year. the our reached A contributed risk operating to income Turning [Indiscernible] nuance?.

your for achieving quarter second in out. of billion past-due the inception home, shape the and X.X%. growth Equipment. bank sales remain royalty? decline and supports In will net are rates capital favorable in the the increase to additional to increased XXXX. addition, Overall, [Indiscernible] involved accounts a comfortable page strategy. at equity gross level the [Indiscernible] A maintained In ratio capital Maryland, carried and successfully at be specifically, we an In

its As of repeated -- the income a increased the has group material seem gave of level contribution to the as to brand whole. the up profitability profit

Slava Nikolaev

the a businesses. retail Supporting color bit to Stewart and more provide wanted on transparency, we of also our media

sales gaining shifting focus were investment, under an on long-term platform (ph) In retail the targeting towards stores and growth we gearing comms to than the in We're by keeping we X year-over-year. bring period. seeing level which margins. Consumers brand the core of we there. QX, and our which accessories health it. to QX to negative sales. in the due also of in to mix our XX% EBITDA and In leader year-ago and In we're equivalent also of have break-even line and amounted well Rubles. reflected to the mid could billion low a believe a our reporting about cost are sharpen after appointed and retail, MTT This successfully focus [Indiscernible] improvement saw to X.X in profitability. rate quarter-over-quarter. media, QX while there in ahead, more likewise media, of We more recently shifting contracts when exercise, April slimmer into is Slide OIBDA it's viewers on we've of gross Looking are efficiency. obtain help a up an XXXX. In premium for as retail, Rubles, many are closed expenses X.X event being are following Revenue healthy months base run retail [Indiscernible] We quarter room well shown for seen new mostly Fahrid those to year-end careful X you have from pressure it's And billion robust brands, that double-digits saw we guidelines, device pandemic. traction us some launch part minus OpEx handsets control very our when lease increasingly is with calibrating annual from in public

hand let Now, it me Andrey to update. a financial for

Andrey Kamensky

for net operating financing profitability profit to XX.X billion income supported core Slava. lower costs. Group by performance, quarter the growth XX.X% Thank, as well increased Rubles. was Bank, at MTS as higher Net year-over-year

addition, a previous In from the relative operations, in there versus XXXX year. the impact was positive currency derivatives fixed significant dynamics QX and reflecting QX

and cash. Now a few on words CapEx

the rate with billion in guidance flow half to in significant The sales the first versus up to two free cash the of around rubles. proceeds earlier the negative we factors, XX.X including a Rubles. run on of billion first reflects X in target CapEx XXXX. XXXX the acquisitions delta amounted Our associates remains decline year half of the year are provided previous of and Combined, in from negative those year-over-year the impact from factors multiple year, a

In CapEx addition, historically, year. is skewed half of the the second towards our

between year. remain at factors While budgeted full expect we spread in healthy XXXX, level into to Taking underlying quarters. investments, generation we a account, cash for these more be evenly have the

repayment debt of the our Turning weighted time, on comfortable terms to the X.X%, impact which to and the rate average in leverage balance rates instruments. same [Indiscernible] of interest our feel At terms increased of schedule. sheet, debt the our floating we hikes reflects gross very in overall key position slightly

will it hand Slava back I for closing comments. his to Now,

Slava Nikolaev

Andrey. you, it I Thank short. will briefly view

results, OIBDA. growth solid revenue to X% XXXX in happy our Given that are upgrading in those I'm to single-digit offer more report we growth outlook than adjusted and

CapEx around of XXX our billion reaffirming While Rubles. or XXX guidance

Finally, share. as the dividend XX.XX that performance, a in Rubles our a per on XXXX we regular forward. well recommended outlook completed payout is this combined shareholder year July, going the in in the And total dividend reflection robust feel Board XXXX full-year payments. ordinary XXXX semi-annual dividend confidence returns, last expected our calendar our to first-half of comes week, as We

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

Polina Ugryumova

thank to the speakers. of Thank the you, Slava. And rest you

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

Operator

Capital. Thank take first you. Instructions]. We'll Kim Xtellus [Operator our question Ivan from with

Ivan Kim

questions Good afternoon. please. from me, Two

mentioned that. X.X% You margin but the missed the But factor, elaborate is should Sorry, more you an on margin in which since if I than the be in there understandable retail? can mix, pressuring the the shift that just was quarter.

continue one-off or much wondering MTS clients drove can just will then quarter-and-quarter a increments. on what elaborate And So ecosystem it please is more thing. whether secondly, of so you

Slava Nikolaev

mix really is is that question of question. On great majorly, that a the change a more -- would've that, than first well, thought it is I of but devices.

to believe whether ask retail. to with be I we going that the the in able the actually you change factors. our we to it, -- have old what's margin in about positive too. going our If to area, mentioned on the second OIBDA. it's I'll sorry, mix on pressure Yeah, that [Indiscernible], margins or and our mix going on and to a question to take that retail target outlook a towards change different of improve keep It's are even

service. One of our premium uptake them good very is of

these get our factors. more connections The for is better of single the combination which and new we multi-product But a time, other the CRM solution. at we see It's a same where [Indiscernible] also solution. by in And to increased is on of allow one tariff, clients is this activity less. neither to

Ivan Kim

you. right. Thank All

Operator

Hnerik next All right. We'll Stanley. from Morgan Herbst with our question take

Hnerik Herbst

had Yes. Thanks I two pretty quick much. questions. very

actually second separation Company of I the it terms one one are Did correct entity you other with it it that your in with you just telecommunication infrastructure. of one you just say get around was are versus like was separate is which tier a opportunities your of then this something all or it looking for bit, question obviously, the is the that? info to in CapEx, one to term And sort and looking investors at year you or -- Co XXXX was run-rate legal IPO previous to basically Maybe a levels from of should sort too in or as structure early, about [Indiscernible] hear so Thanks more normal did but CapEx it's years. return and setting up of we first a was much. a thing center that a think The XXXX? data up

Slava Nikolaev

Andre and over first again, separation. the power question it I'll Once to only. is will infrastructure hand it's Company Okay. companies. take I two One on is then

entities. from it entities focus have main we traditional plus the as two the kind the And that. is to development edge infrastructure the is now tower Company, centers. that main, more legal focus now could technical we on bring And now structure. that be main and considered a to legal when the its very this in idea These all of block to a -- cloud are this on how the From data have very together, And transform is could we modern market to side position good And the see we'll Company telecom a and -- we trend. most our second opportunities separate The into on solutions. major these all because parts see idea see goes. us is separate to put infrastructure see -- really

far So will is Company. different be create again, on idea probably this we the for looking but so that, opportunities, to

Andrey Kamensky

a [Indiscernible] we future, rate. as CapEx. our the in certain and this not year this I as see absolutely temporary as in ramp consider CapEx you're we that this take what earlier will right. last invest said we We on will year peak question up I reconfirm just

less before. comparable will presume we've come So that or that more levels seen we back we to

Hnerik Herbst

much. you very Brilliant. Thank

Operator

comes from question [Indiscernible] next Goldman Our from Sachs.

Slava Degtyarev

much A the so Thanks questions. couple Yes. for of presentation.

it aiming firstly, debt stay on regard utilization. follow-up current a your you with EBITDA So the would What net be for in is long-term MTS? And currently certain levels at leverage available what secondly, be looking also you stake, to to partner? can of the of or the consideration probably the long-term over Are so broadly the you're have see maximization see of you're for Thank may can divestment on across your thinking to optimistic, current move You to partial sale here? levels the sale regards that would long-term is business, the XXX% and the you portfolio opportunistic with -- currently all controlling potential that options? separation, mind or them consider or you. it's you

Slava Nikolaev

I take the will of Yes. in first leverage question terms levels.

before, that As said net as I we higher we covenants see of ratio stands level debt comfortable X but X.X, levels Currently, a much are to the OIBDA. than the at mentioned. that quite a have of we

So situation we in at are a pretty moment. the comfortable

ourselves what of very On and one important course, depends I of that the now them. our we is, generalist But business considering much most on say at it to want things the is question of second say levels. the because main any But actually, I the of to to we're and is want on too safety general would the looking opportunities here. Company we tie don't different that are

Slava Degtyarev

you very Thank Okay. much.

Operator

with Vengranovich comes Our Capital. Alexander next question from Renaissance

Alexander Vengranovich

from couple Yes. my side. of questions afternoon. Good A

spending may increase growth on was your accelerate the on was seemed visit on it. with overall I'm lack see plan increase satisfactory, quarters. video It probably that you re-launch here. Then launch? questions whether impressive, and results comparable whether the just the the users [Indiscernible] First, are really service related the the to who of that that the the with are the wondering of to be not quarter, contents and general of you last OGT previous in satisfied

roughly if accounting which first maybe the profitability content remind kind media you the Media you standing half whether segments. showed the over of 'XX, of time? that's related of to the the share And it Can services. us services in was You please to share the and the please Media our of capitalize us depreciate case, segment, services CapEx can of with the on you

my from probably side. that's So

Slava Nikolaev

start the question. first Let's with

never You know, results. satisfied we're with the

be can better, But we on a right originals, faster a I think we was the to have do deliberately have to to, brand. it's get of very way we by We took very brand have our understand this is can good thing under to thing. that expect time, right a going the we the that. recognized So QX, And And think at I forward. clients. one but second reception we grow I take in we the think new one the quarter. a I time which of shown doing same to the end, launch than see

this to presentation would the slides on and shown you our somehow -- product On of second question probably it. the help production it the we because and understand this capitalize is this didn't amount maybe me and I content second we've seven of

if maybe So more you details, some to -- want you could

Alexander Vengranovich

it. found I Yes,

that. for -- CapEx number found the I Sorry

Slava Nikolaev

Okay. Great.

Alexander Vengranovich

-- On the Xth slide.

So that's okay.

So confirm to I capitalized. that just wanted this

a in Okay. [Indiscernible] of reduction at I follow-up was clients minor then users. there SEP the like quarter-over-quarter do think service When And question. we quarter, sort of active the second number Good. the maybe a of look their

So expecting overall and whether in it a to it were any it maximum or close number the to the future. I'm you just probably users that level you're be it's grounds there is the feel saturation behind of has wondering

Slava Nikolaev

find did I a but [Indiscernible] for can there -- second, me you tell you you, got where

Alexander Vengranovich

Yeah.

customers, So million. I was I the this million MTS around at of look it roughly around the I in am think the correct, first if My roughly quarter, users XX.X active number and in when was XX.X monthly quarter, app,

I'm hasn't I'm just correct. it whether grown it. wondering behind So If

Slava Nikolaev

my one their use and yet, of see devices. of smartphones, even years, part but that But use majority numbers MTS we it several at people, frankly plateau you usually we been MTS quarters that were got point. have some my if they ago we who said the speaking, most It's my not people we to that I'm that to we've have on generally sim is to important here MTS already the expecting discussing that several use and when that flat. point cards, understand sure

could terms, these in So multiply. this be

MTS We have users. multiple as my them don't multi We count users.

terms, number pretty see see users, with but happy additional of this application, of our I development of on we're So are with going that the growth. the content these we current The to

For this this more the clients Fintech teams example, site from too. for the MTS two have -- we in following part expect of on working we My and quarters,

So it's figures. it's the but MTS. grow anything going that the subscribers to see usually further, are which see in ominous happy I And showing I My those don't MTS very our with

Alexander Vengranovich

Okay, good. Based on through what you network, say, MTS users where I'm believing right? My majority that XXX% million the in are MTS close a MTS way on users smartphone to that this of roughly XX the the represent users smartphone unique on probably

Slava Nikolaev

I That's said. not what

Sorry.

Alexander Vengranovich

Thank Okay. you.

Operator

comes UBS. next Our question with Cabesek Andre from

Andre Cabesek

Hi, the got questions thank follow-ups, I you please. two for and two presentation.

So question the the first on bank.

then where on that last mentioned But I you a a of of doing is believe ongoing see later. some reversing and too the we any actually improvement follow-ups that please the some comments And the short-term that also, couple question that space year second potential so via you better point provisions for retail with year bank? kind be, around much was only be there terms The equity you space retail the the you need are previous at potentially of mentioned minutes all, that would of ago clarify essentially don't quarter, your may made consideration? done think is now, could injection, still in there you for of First doing you margin could if optimization. the in be next that last so the for for [Indiscernible] much that

Slava Nikolaev

the with level see and the Yes. the at I are the the we means levels. because of and level that bank as we comfortable growth shareholder comfortable happy of that quite will take question the first risk at bank, of a very

support first support growth So actually year ready We this as and are did to the a the shareholder, the bank in we further. half its ready of already and you. we're to

and first that a be will this our So follow-up just position. also of as Well,

Andrey Kamensky

estimate see [Indiscernible] reversal Actually, posted of positive current terms the reversal actually, but bank the them, and that investments. in provided we very of of terms in provisions, dynamics substantial it the over the don't the provisions. needs, of provisions regulations Question any

Slava Nikolaev

margin see improvement amount current the retail, on source. be we that of couldn't Again, even reached on

we some and hardware are little-known the provision. And we've this of course, we to before, go always on but down. are services, fix but market. sites. ready are But generally, within the numbers see a movement other -- and the ready, product the We still stores, planning and positioning competitive the We services northern they don't of are stores put enough optimize don't as of very were on they from within were to we including, we

-- We reach have tell goals direction, retail. I this we that that far, already I'm -- that. but confident we have very the But of regarding in we happy to so can mentioned to frankly, see into be signs move I can directions. And you, would don't decided I I very any go the different

Andre Cabesek

I'm I comfort level? and with target of a Thank for the more seems, sometimes than it is you. respect mentioning if that correct to you it leverage, questions becoming the And a keep that wrong, follow-ups had on previous the raised me

Slava Nikolaev

Not target, see a levels. comfortable answer for actually. kind what of level that. We that don't the and The no. was it current see that we see actually, the question We as was can a

Andre Cabesek

towers, you Thank just guess potentially because think made FinTech about on options businesses all second specifically the infrastructure the it you Okay. clear that the I the talking you said and talk more want infrastructure. avenues the table, don't this the in targets. of and similar with towers, would of a list selling close But open all of on the I if to that example, had of are the you sharing the I you of see and your too on about follow-up, detail. the I are know if them between reviews. one But And or IPO you. them, much on end preference elements one value opposite if today? on as terms positive create going you the for both the through competitors, towers could and preferences in active end, completely management of of What be the may

Slava Nikolaev

because we taking No. pointer here. are is started discussion You opportunistic that the an internal position The we

are say I list preferences, that them. precisely to We could looking perceived at and -- very have of least know many of answer this to there of for options, be we a I wouldn't And able are theoretical I know. question different It preferences. wouldn't would wrong. be be don't

Andre Cabesek

much. very you Thank right. All

Operator

a As a with Instructions]. Capital. Ivan from we'll take And follow-up reminder [Operator Xtellus question everyone Kim

Ivan Kim

Thank you the for opportunity.

on maybe PBX MTT what That's questions from acquisition. you probably question. more the two generally your and Can Just us color expect some from business. of you give on first MTT sort growth virtual

The dwell -- so second including for year. make question is that this you're dividend on sorry out leverage to ass the payments times -- but pretty leverage two now you're going to

X.X including leverage, times. Your leases

So to just or will as at do leverage issue all, wondering, X.X currently. that you an kind definition, which I your comfortable is you two based of moving be am perceive Thank you. times on

Inessa Galaktionova

question Ivan, MTT. Okay. And then, the will first that I on closing take we're deal.

we'll expect extra actually on a the be this buying that product actually good So market. to was [Indiscernible], using which period channels of still, good have synergies And growth do big foretasted introducing strategy single here will have virtual clients. organically, are be the is figures. we It was products and our new there growth. would which on based or the double-digit gross. growing and products, API we establish on expect on some basic the definitely, in very strategy a once And behind we on and main depend GDP on bring do asset actually But market the very to Silicom big a expect part BXB to the will will call, in

our in keep we'll informed reporting. So next definitely

yes. reporting, Next

Slava Nikolaev

then and Ivan, course. your question, Yes. second of

Just leverage, is current the to which X.X. mentioned I definition where clarify, of

X. comfort in the that terms, level I've So these said is around

Ivan Kim

Thank you.

Operator

All right. Renaissance Vengranovich next We'll from Capital. take follow-up the Alexander with

Alexander Vengranovich

Yes, thanks.

So in your services the lower against those presentation, on we use of the multiple client the usually you multiple mentioned have average clients ecosystem MTS. and churn that clients

which you've for in already the I'm from can the on quantify do in if So selling second please can, reduction second you seen you providing if And you should how quarter. caller, is wondering financial any big expenses, example, in just the can overall the for big on impact, to help for example, quarter, year-over-year maybe year-over-year. on stuff, And cards be to That which reduction in and you the share will of clients Thank helpful. expenses. from save their you. bliss existing this can how of selling reduction churn sim anything the optimization from on then sold you the matter reduction churn new the how

Slava Nikolaev

figure. exact there wanted say new telecom or generally, growth that, them not We're a be quarter, to all I I've is a we can we the when see when traditionally very down that tricky results of term the it's and another you to first time very I no But now it is service impact going But the -- service, could that of what is you tried show to you. increase. results, you'll seen to first of that which better is in a it calculate to our reported telecom calculating think it's separately than attribute through -- it competitors. We the it major connect all, it. And see a will figure because many explain because the to can you

system I in effect. and the it will think first XX% attributed LCOS more it's quarter was clients’ multiproduct than that growth to Telecom calculate of

So pin is big it. I this is it, wouldn't again, put this a very, very but figure. on generally a

Alexander Vengranovich

Okay. I got it.

Operator

from America. of Bank take next Jeffgimi question the And (ph) our [Indiscernible] with we will

Jeffgimi

basis. First, And for some one. regulation? any potential Hi, model you spectrum the allocation good you presentation rollout I the Could on have on renewals, a XG to it if could requirements, rules updates and it rural and evening. be opportunity like And model coverage. Russia potential ask please spectrum expiring just to also standalone second with licenses, that federal coverage provide on thank or is one XG question. update on and linked are the consortium and a

If you regulators? discussions on the please Thank could update any provide you. with

Slava Nikolaev

the that me with discussed, looked sold that this I the And XX Capital. three I Its this It's [Indiscernible]. I'm be and it's license see Okay. part, again, that according -- or looked XG, being -- I being so links, during the this this put we'll any major major probably nothing a them. of yes, officially and way. second agreement, terms it really major don't very happened I sold as you news. let is years help I except On way bit heard only it's will in could way. to But little on And mutual there accepted last would I that consortium optimistic am we've see In it be that mobile, months it right -- think localization, said some don't but think believe already the on the reasonable. -- it's think for probably news mutual how with CapEx But public. forward. expected about put optimistic, pressure efforts. our the this

Jeffgimi

you. Thank

by potentially from immediately any So XXrd spending site two years. the not and your [Indiscernible] or KPIs build in will spread prior potential

Slava Nikolaev

in the matter. they to this on the And I to that, some looking, in are addition tell put really significant operators, that you us us, then companies efforts can that, with with they negotiations governments. see energy And actually I if expect -- this government and help local cooperate including to

seems positive it it it will be yes, might the this that spread a next in And So thing. XX years. be time,

Jeffgimi

so much. Thanks

Operator

there like to I'd questions. turn remarks. Polina further to no closing back call for the And the are

Polina Ugryumova

Thank you.

additional journalists, about question coming from is one to We our plans potentially have the related buybacks. which

this you new a any end launch have If to buyback before plans the of year.

Slava Nikolaev

So I'll answer.

program have don't the run. to of this buyback this we the another that end any year. we For plans actually we year, finalize have program And until

Polina Ugryumova

questions other Operator, do any we online? have

Operator

No, there time. no further this are questions at

Polina Ugryumova

and listening ladies gentlemen, much, to very you for this Thank call. Okay.

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

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

In are MTS the wish your Our pleasant you. inboxes and Thank a meantime, interest open. we everyone appreciate day. in lines and phone

Operator

presentation. you Thank And today's concludes that for participation. your

You may now disconnect.