Mobile operator MTS bets on digital services as quarterly profit slips

MOSCOW: Russia’s biggest mobile operator MTS on Tuesday reported an almost 9% drop in first-quarter net profit to 16.2 billion roubles ($219.7 million) but said expansion in digital services should allow it to deliver on financial goals.

MTS, part of conglomerate Sistema, said that when adjusted for derivative operations used to mitigate currency risk, net profit was almost 20% higher in year-on-year terms. Revenue rose by 5.5% year-on-year to 123.9 billion roubles.

“Looking ahead, we see promising trends in 2021, including rapid uptake in digital services as well as the easing of pandemic-related roaming headwinds,” said President and CEO Vyacheslav Nikolaev.