MTS is the only one of the “big three” increased revenue in 2015

Revenues of Telecom operator MTS grew by the end of 2015 by 5% to 431,2 billion roubles, is spoken in the message of the company. Thus, MTS was the only operator of the “big three” who managed to grow last year: “VimpelCom” (brand “Beeline”) for the same period reduced revenue by 1%, to 278,4 billion roubles, “the Megaphone” — on 0,4%, to 313,4 billion rubles, wrote earlier . To overtake the pace of revenue growth MTS could not only Tele2: revenue for the fourth mobile operator has increased for 2015 by 8% and amounted to 94.6 billion rubles, followed from the statements shareholder Tele2 — VTB Bank.

In the fourth quarter, MTS ‘ revenues grew by 5.7% year-on-year to 113.3 billion rubles Competitors, VimpelCom and MegaFon, for the same period in 2015 has reduced their revenue by 3% to 71.7 billion rubles, and by 0.3% to 81.9 billion rubles, respectively. Operator Tele2 has not reported for the last quarter of last year.

Revenue growth MTS representatives explain the increase of revenues from mobile Internet, the number of subscribers in Russia and the strategy for the development of retail. According to the company, revenues from mobile Internet in Russia has increased by 19.8 per cent, the number of retail stores increased by 1 million (to 5.1 thousand units), and the number of subscribers has reached 77,3 million, which is 3.6% higher than a year earlier. MTS for the year retained leadership in terms of subscribers in the country, despite the fact that competitors are the “big three” increased its subscriber base quicker: the number of users of MegaFon grew by 7.2%, “VympelCom” — on 4,5%.

For the fourth quarter of the company’s profit grew by 5.2 times to RUR 7.1 billion. due to the low base effect of the previous period, according to the materials of the company. Thus by the end of 2015 the company’s profit dropped by 3.5%, amounting to 49,5 billion rubles For comparison: profit of “MegaFon” in 2015 rose by 6.3%, to 39 billion rubles, as Tele2 in 2015 showed a loss of 7.6 billion rubles, compared with a profit of 0.9 billion rubles a year earlier. “VympelCom” does not indicate the profits in the accounts of its parent company VimpelCom in 2015 received the loss “from continuing operations” of $851 million

OIBDA declined by 2% to 175,5 billion rubles, profitability — from 43.6 to 40.7%. The operator explains this decline, in particular, expenditure on the expansion of the retail network of salons (their number exceeded 5 million), higher costs for roaming services, the volatility of exchange rates. “MegaFon” for the year OIBDA margin decreased from 44 to 42.2%. VimpelCom calculates EBITDA to sales ratio: this indicator fell during the year from 39.7 to 39.2%. The results of Tele2 is not yet known.

The decline in profitability of MTS primarily associated with active growth in retail network, says Raiffeisenbank analyst Sergey Libin. The company has relied on its own network, once in the spring of 2015 competitors — VimpelCom and MegaFon — have resumed full cooperation with the retailer “Svyaznoy” and MTS, on the contrary, gone from the network. “The company lost a major sales channel for SIM-cards. In this situation it is better to sacrifice margin than the situation on the market”, — said Libin.

Agree with him and the analyst iKS-Consulting Maxim Savvatin. In 2015, the company dramatically reduced prices for gadgets in their salons (the fall in prices has reached 30%). For the year revenue from sale of handsets and accessories MTS in Russia grew by 37%, to 40.3 billion rubles, follows from the statements. Now MTS has stopped actively dumping — price war is almost over, said Savvatin. “The company’s strategy paid off. But the consequences can still be seen in future reports of the company”, — the expert believes.

The emphasis on the development of the retail network of MTS has helped to increase the subscriber base. The competition remained such channels of distribution of SIM cards, as Svyaznoy and Euroset, in the absence of a developed retail MTS rates of growth in subscriber numbers would be even lower, says Libin.