FORM 6-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Issuer
November 19, 2019
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
Commission file number: 333-12032
Mobile TeleSystems PJSC
(Exact name of Registrant as specified in its charter)
Russian Federation
(Jurisdiction of incorporation or organization)
4, Marksistskaya Street
Moscow 109147
Russian Federation
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F x Form 40-F o
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes o No x
Press release |
Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of MTS, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify forward looking statements by terms such as “expect,” “believe,” “anticipate,” “estimate,” “intend,” “will,” “could,” “may” or “might,” and the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not undertake or intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. We refer you to the documents MTS files from time to time with the U.S. Securities and Exchange Commission, specifically the Company’s most recent Form 20-F. These documents contain and identify important factors, including those contained in the section captioned “Risk Factors” that could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, the severity and duration of current economic and financial conditions, including volatility in interest and exchange rates, commodity and equity prices and the value of financial assets; the impact of Russian, U.S. and other foreign government programs to restore liquidity and stimulate national and global economies, our ability to maintain our current credit rating and the impact on our funding costs and competitive position if we do not do so, strategic actions, including acquisitions and dispositions and our success in integrating acquired businesses, potential fluctuations in quarterly results, our competitive environment, dependence on new service development and tariff structures, rapid technological and market change, acquisition strategy, risks associated with telecommunications infrastructure, governmental regulation of the telecommunications industries and other risks associated with operating in Russia and the CIS, volatility of stock price, financial risk management and future growth subject to risks.
Q3 2019 HIGHLIGHTS
in RUB bn unless indicated otherwise
MTS Group – Key figures |
| Q3 2019 |
| Q3 2018 |
| Change, % |
|
Revenue |
| 133.9 |
| 128.0 |
| 4.6 | % |
o/w Russia |
| 121.9 |
| 119.1 |
| 2.4 | % |
OIBDA |
| 62.8 |
| 59.3 |
| 5.9 | % |
o/w Russia |
| 57.3 |
| 55.5 |
| 3.2 | % |
Operating profit |
| 35.9 |
| 32.8 |
| 9.3 | % |
Profit/loss attributable to owners of the Company |
| 18.4 |
| -37.0 |
| n/a |
|
Cash CAPEX |
| 21.8 |
| 21.2 |
| 2.9 | % |
Net debt (1) |
| 307.0 |
| 226.9 |
| 35.3 | % |
Net debt / LTM Adjusted OIBDA (2) |
| 1.6 | x | 1.2 | x | n/a |
|
9M 2019 highlights |
| 9M 2019 |
| 9M 2018 |
| Change, % |
|
Operating cash flow |
| 70.3 |
| 110.2 |
| -36.3 | % |
Free cash flow |
| 11.6 |
| 40.3 |
| -71.3 | % |
Free cash flow excl. SEC/DOJ payment |
| 67.2 |
| 40.3 |
| 66.6 | % |
Alexey Kornya, President & CEO, commented on the results:
I am happy to report that in Q3 we successfully maintained our momentum and delivered another quarter of solid results. Total Group revenue was up 4.6% year-over-year, reaching 133.9 billion rubles, with a notable top-line contribution from MTS Bank. Moreover, we saw OIBDA growth accelerate to 5.9% year-over-year, with OIBDA standing at 62.8 billion rubles for the quarter.
Given our strong year-to-date results and improved visibility toward our full-year performance, we feel confident in raising our 2019 guidance to 6-7% growth in revenue and 4-5% growth in OIBDA.
Alongside continued solid operational performance, we also delivered meaningful progress on our strategic initiatives to expand beyond connectivity and strengthen our position as a leading provider of digital services. In August, we had multiple appointments to key roles within our re-aligned, matrix-based organizational structure, strengthening our business verticals and enabling functions, as well as attracting new talent into growth areas. Going forward, I have full confidence in both our team and our strategy.
Heading into the final stretch of the year, we are well-positioned to deliver a strong close to 2019 for the benefit of our shareholders.
in millions unless indicated otherwise
Mobile subscribers |
| Q3 2019 |
| Q2 2019 |
| QoQ Change, % |
| Q3 2018 |
| YoY Change, % |
|
Total |
| 106.5 |
| 105.4 |
| 1.0 | % | 105.5 |
| 1.0 | % |
Russia |
| 78.8 |
| 78.1 |
| 0.9 | % | 78.0 |
| 1.1 | % |
Ukraine (3) |
| 19.8 |
| 19.6 |
| 1.2 | % | 19.9 |
| -0.4 | % |
Armenia |
| 2.2 |
| 2.1 |
| 3.2 | % | 2.2 |
| 3.0 | % |
Belarus (4) |
| 5.6 |
| 5.6 |
| 1.6 | % | 5.4 |
| 4.1 | % |
(1) Excluding lease obligations
(2) Excluding the effects of new IFRS 15 and 16
(3) Including CDMA subscribers
(4) MTS owns a 49% stake in Mobile TeleSystems LLC, a mobile operator in Belarus, which is not consolidated
KEY CORPORATE DEVELOPMENTS
CORPORATE NEWS
In July, MTS announced an updated organizational structure that took effect on August 1, including the creation of two new First Vice President roles. Inessa Galaktionova was appointed First VP for Telecommunications and Vyacheslav Nikolaev was appointed First VP for Customer Experience & Marketing.
***
In August, MTS completed its dividend payments based on the company’s full-year 2018 financial results. The final dividend for FY 2018 amounted to RUB 19.98 per ordinary share (RUB 39.96 per ADR), or in total RUB 39.9 bln (RUB 39,927,292,380.36).
***
In September, Igor Mishin was appointed Vice President for Media to lead MTS’s content aggregation and distribution strategy across OTT, IPTV, mobile, and satellite.
***
In September, the EGM approved recommended semi-annual dividends of RUB 8.68 per ordinary MTS share (RUB 17.36 per ADR), or a total of RUB 17.3 bn (RUB 17,345,798,747.48) based on the Company’s H1 2019 financial results. The record date for shareholders entitled to receive dividends was set for October 14, 2019. The dividend payment will be completed on or before November 19, 2019.
***
In October, the MTS Board of Directors approved an updated Group strategy for the period 2020-2022, as well as confirmed the continued suitability of MTS’s current listing structure on the New York Stock Exchange (NYSE) and the Moscow Exchange (MOEX).
BONDS & LOANS
In July, MTS issued RUB 10 bn in exchange-traded bonds on the Moscow Exchange (MOEX) with a maturity of 7 years and a coupon rate of 7.90%.
***
In September, MTS announced the improvement of financing terms with Sberbank via the restructuring of an existing 70-billion-ruble credit facility and the opening of a new 50-billion-ruble credit line.
***
In September, MTS announced the improvement of financing terms with VTB Bank via the opening of a 55-billion-ruble credit line and full early repayment of an existing 50-billion-ruble loan.
***
In October, MTS issued RUB 15 billion in exchange-traded series 001P-12 bonds on MOEX with a maturity of 4 years and a coupon rate of 6.85%
5G
In September, MTS launched Russia’s first continuously operable mid-band (sub-6GHz) 5G pilot zones in Moscow and St. Petersburg.
***
In September, MTS achieved a data transfer rate of 2.1 Gbps on a preproduction Samsung S10 5G smartphone featuring the Snapdragon 855 platform and Qualcomm’s next-generation X50 modem with an MTS SIM card connected to Nokia AirScale mmWave Radio equipment.
***
In September, MTS together with Huawei and the Moscow Department of Information Technology showcased potential Smart City transportation technologies in a 5G pilot zone. The partners demonstrated multiple scenarios that highlighted how fifth-generation connectivity could help improve road safety.
4G NETWORK DEVELOPMENT
In September, MTS announced it has achieved full 4G coverage throughout all stations, interchanges, and train tunnels of the Moscow Metro system. In total, the Company invested RUB 1.7 bn in rolling out underground LTE coverage in the Moscow Metro, one of the world’s most heavily used mass transit systems. Over 2 million riders use the MTS network while riding the metro every day.
ENTERTAINMENT
In September, MTS signed a ten-year agreement to be the branding partner for a new entertainment venue in Moscow. Located near the Skolkovo Innovation Center, the new six-story MTS Live Arena complex will have an occupancy capacity of 11,500 people, with plans to eventually host more than 700,000 guests at over 130 events annually. The facility is planned to open its doors in 2020.
RETAIL
In August, MTS opened its first co-branded store with Russia’s largest electronics retailer, M.Video-Eldorado Group, on one of Moscow’s premier shopping streets. The new outlet features a wide array of cutting-edge digital devices, showcasing a full spectrum of MTS services and solutions, spanning mobile connectivity, TV, and banking.
B2G
In August, MTS announced the company won a RUB 4 bn government tender to connect some 5,000 regional and municipal facilities to the Internet under the Russian Digital Economy program. The project, which will run from 2019-2021, will improve the connectivity of schools, healthcare clinics, fire stations, and other socially important sites in nine Russian regions.
STARTUP HUB
In July, MTS announced ten promising project proposals will advance to the pilot phase of our StartUp Hub accelerator initiative. The projects were grouped into three categories: HR Tech, FinTech, and eSports.
***
In August, MTS launched the fourth intake cycle of its Startup Hub, calling for projects aimed at improving the productivity of the Company’s e-commerce, cloud, customer service, and e-ticketing platforms.
BRAND
In July, MTS was recognized as Russia’s most valuable TMT brand and the country’s ninth most valuable brand overall by Brand Finance. The company’s brand valuation was estimated to be RUB 121.5 bn, up 6% year-over-year.
PARTNERSHIPS
At Russia’s Eastern Economic Forum, MTS signed digital cooperation agreements with six Russian regions. Furthermore, MTS launched a digital startup partnership with Enterprise Singapore, the Asian country’s official business development agency.
AI
In November, MTS signed an agreement to become a founding member of the AI-Russia Alliance alongside Yandex, Mail.ru Group, Sberbank, Gazprom Neft, and the Russian Direct Investment Fund (RDIF).
SUSTAINABILITY
In September, MTS announced the company has joined a global GSMA-led initiative to develop a mobile industry climate action roadmap in line with the Paris Agreement. As part of the initiative, MTS has begun disclosing additional data about its environmental impact via the internationally recognized CDP disclosure system, including the Group’s energy consumption and greenhouse gas (GHG) emissions. This will enhance the transparency of the MTS’s climate impact, as well as enable customers and investors to more easily track and measure the Company’s progress.
THOUGHT LEADERSHIP
In October, President & CEO Alexey Kornya presented a the GSMA’s Mobile 360 Eurasia conference, the premier industry event in the region. His talk focused on the steps MTS is taking at the forefront of IoT and 5G innovation in Russia. Additionally, other top MTS leaders spoke about emerging opportunities in FinTech, AI, entertainment, and B2B solutions.
GROUP PERFORMANCE
in RUB bn unless indicated otherwise
MTS Group – Key figures |
| Q3 2019 |
| Q3 2018 |
| Change, % |
|
Revenue |
| 133.9 |
| 128.0 |
| 4.6 | % |
OIBDA |
| 62.8 |
| 59.3 |
| 5.9 | % |
margin |
| 46.9 | % | 46.3 | % | 0.6 | p.p. |
Profit/loss attributable to owners of the Company |
| 18.4 |
| -37.0 |
| n/a |
|
margin |
| 13.7 | % | n/a |
| n/a |
|
MTS continued to demonstrate solid performance in Q3 2019, with Group revenue increasing 4.6% year-over-year, reaching RUB 133.9 bn. The main drivers were mobile service revenue in Ukraine and Russia, as well as strong revenue dynamics on the part of MTS Bank.
In addition, Group OIBDA saw growth accelerate from previous quarter to 5.9% year-over-year, reaching RUB 62.8 bn in Q3.
Group net profit totaled RUB 18.4 bn supported by solid operational performance, which was offset by higher interest expenses that were partially affected by a one-off under IFRS 9.
Group OIBDA Factor Analysis (RUB bn) (5)
Group Net Profit Factor Analysis (RUB bn) (5)
*Excluding provision
(5) Totals may add up differently due to rounding
LIQUIDITY AND CASH FLOW
in RUB bn unless indicated otherwise
Debt & Liquidity (6) |
| As of |
| As of |
|
Current portion of LT debt |
| 98.7 |
| 68.8 |
|
LT debt |
| 277.3 |
| 308.4 |
|
Total debt |
| 376.0 |
| 377.2 |
|
less: |
|
|
|
|
|
Cash and cash equivalents |
| 52.5 |
| 51.2 |
|
ST investments |
| 15.7 |
| 15.2 |
|
LT deposits |
| 0.1 |
| 0.1 |
|
SWAPs |
| 0.6 |
| 1.0 |
|
Effects of hedging of non-ruble denominated debt |
| 0.1 |
| -0.5 |
|
Net debt |
| 307.0 |
| 310.1 |
|
At the end of Q3, total debt amounted to RUB 376.0 bn (excluding debt issuance costs). In the reporting period, MTS issued RUB 10 bn in exchange-traded bonds in July with a maturity of 7 years and a coupon rate of 7.90%.
In Q3, MTS also took active steps to further optimize its debt portfolio. The Group restructured credit facilities with Sberbank and VTB in the amount of RUB 70 bn and RUB 50 bn, respectively. In addition, MTS opened a RUB 50 bn credit line with Sberbank and a RUB 55 bn credit line with VTB of which RUB 25 bn was used to restructure the RUB 50 bn facility.
Net debt to LTM Adjusted OIBDA(7) ratio
The Net debt to LTM Adjusted OIBDA ratio stood at 1.6x at the end of Q3 2019, excluding the effects of IFRS 15, and 16 standards.
Weighted average interest rates (as of September 30, 2019)
As of September 30, 2019, the gross debt weighted average interest rate decreased to 7.8% as a result of MTS’s debt portfolio optimization.
Gross debt structure by currency (8)
Non-ruble debt comprises roughly 8% of gross debt, largely consisting of two outstanding Eurobonds due in 2020 and 2023.
MTS Group’s net debt currency composition remained unchanged (100% ruble-denominated).
(6) Excluding lease obligations
(7) Excluding the effect of IFRS 15 and 16
(8) Including FOREX hedging in the amount of USD 300.0m as of September 30, 2019
SHAREHOLDERS REMUNERATION
*Totals may add up differently due to rounding
In September, shareholders voting at the EGM approved semi-annual dividends of RUB 8.68 per ordinary MTS share (RUB 17.36 per ADR), or a total of RUB 17.3 bn (RUB 17,345,798,747.48), based on the Company’s H1 2019 financial results. In June, the AGM approved annual dividends of RUB 19.98 per ordinary MTS share (RUB 39.96 per ADR), or a total of RUB 39.9 bn (RUB 39,927,310,941.78), based on the full-year 2018 financial results.
in RUB bn unless indicated otherwise
Cash CAPEX |
| 9M 2019 |
| 9M 2018 |
|
Russia |
| 54.2 |
| 49.3 |
|
as % of revenue |
| 15.6 | % | 15.1 | % |
Ukraine (9) |
| 6.3 |
| 5.7 |
|
as % of revenue |
| 22.0 | % | 26.5 | % |
Armenia (10) |
| 0.6 |
| 0.4 |
|
as % of revenue |
| 10.9 | % | 8.0 | % |
Group (9),(10) |
| 61.1 |
| 55.4 |
|
as % of revenue |
| 16.2 | % | 15.8 | % |
Capital expenditures in 9M 2019 amounted to RUB 61.1 bn with a CAPEX/Sales ratio of 16.2%.
During the reporting period, MTS continued to improve network coverage and performance. In Russia, the number of active base stations grew by nearly 4,000, including an additional 2,860 4G base stations in 82 regions. As a result, LTE population coverage further increased to 74.5% by the end of Q3 2019.
in RUB bn unless indicated otherwise
Cash Flow |
| 9M 2019 |
| 9M 2018 |
|
Net cash provided by operating activities |
| 70.3 |
| 110.2 |
|
less: |
|
|
|
|
|
Purchases of property, plant and equipment |
| -45.0 |
| -44.7 |
|
Purchases of intangible assets(9),(10) |
| -16.1 |
| -10.8 |
|
Cost to obtain and fulfill contracts, paid |
| -3.7 |
| -3.5 |
|
Purchase of Avantage |
| — |
| -7.6 |
|
Proceeds from sale of property, plant and equipment |
| 5.1 |
| 3.9 |
|
Investments in associates |
| — |
| -3.9 |
|
Acquisition of subsidiaries |
| -2.1 |
| -3.5 |
|
Proceeds from sale of associates |
| 3.1 |
| — |
|
Free cash flow |
| 11.6 |
| 40.3 |
|
Free cash flow excluding SEC/DOJ payment |
| 67.2 |
| 40.3 |
|
(9) Excluding costs of RUB 5.5 bn related to the purchase of 4G licenses in Ukraine in 9M 2018
(10) Excluding costs of RUB 0.3 bn related to the purchase of 4G licenses in Armenia in 9M 2019
For the nine months ending September 30, 2019, free cash flow amounted to RUB 11.6 bn. Excluding the payment under the resolution with the DOJ and settlement with the SEC, MTS saw free cash flow of RUB 67.2 bn in 9M 2019, an increase of 66.6%.
The main factors were strong operating performance in 9M 2019 and the sale of a stake in Ozon in Q1 2019. Comparatively, in 9M 2018, free cash flow was negatively impacted by the acquisition of stakes in Ozon, Ponominalu, Ticketland, and Avantage.
RUSSIA
in RUB bn unless indicated otherwise
Russia highlights |
| Q3 2019 |
| Q3 2018 |
| Change, % |
|
Revenue |
| 121.9 |
| 119.1 |
| 2.4 | % |
mobile |
| 83.1 |
| 80.7 |
| 3.0 | % |
fixed |
| 15.0 |
| 14.9 |
| 0.7 | % |
bank |
| 7.6 |
| 5.6 |
| 37.7 | % |
integrated services |
| 2.7 |
| 1.8 |
| 47.1 | % |
other services |
| 0.2 |
| 0.2 |
| 4.8 | % |
sales of goods |
| 18.1 |
| 20.3 |
| -10.6 | % |
OIBDA |
| 57.3 |
| 55.5 |
| 3.2 | % |
margin |
| 47.0 | % | 46.6 | % | 0.4 | p.p. |
Net profit |
| 17.5 |
| 18.8 |
| -7.0 | % |
margin |
| 14.4 | % | 15.8 | % | -1.4 | p.p. |
In Q3 2019, revenue in Russia increased by 2.4% year-over-year, reaching RUB 121.9 bn. This growth was largely driven by rising mobile service revenues as well as the strong performance of MTS Bank.
Russia OIBDA growth accelerated to 3.2% year-over-year in Q3, reaching RUB 57.3 bn supported by solid top-line performance overall. For the reporting period, Russia OIBDA margin stood at 47.0%.
Against the backdrop of a rational competitive landscape and easing effect of internal roaming cancellation on an annual comparative basis, MTS’s revenue growth in its mobile business in Russia accelerated to 3.0% in Q3, totaling RUB 83.1 bn, with the company successfully growing its base of subscribers by 1.1% year-over-year to reach 78.8m at the end of Q3.
MTS’s fixed business demonstrated a slight increase in revenue to RUB 15.0 bn.
Revenue |
| Q3 2019 |
| Q3 2018 |
| Change, % |
|
Total |
| 15.0 |
| 14.9 |
| 0.7 | % |
B2C |
| 7.7 |
| 7.5 |
| 2.9 | % |
B2B+B2G+B2O |
| 7.3 |
| 7.4 |
| -1.6 | % |
According to internal estimates, in Moscow MTS’s B2C broadband market share grew to 41.5% and its pay-TV market share to 44.8% at the end of Q3 2019. Similarly, the number of subscribers on MGTS’s high-speed FTTH GPON network in Moscow continued to grow, surpassing 2.0 million for the first time.
Group revenue contribution from MTS Bank saw a significant 37.7% year-over-year increase to reach RUB 7.6 bn, reflecting rapid growth in gross retail loans of 85.1% year-over-year to reach RUB 79.7 bn.
Revenue from MTS’s integration business in Q3 2019 increased 47.1% to RUB 2.7 bn year-over-year. Revenue contribution from other services grew by 4.8% year-over-year.
MTS saw 10.6% year-over-year decrease in sales of goods, primarily impacted by diminishing software sales. Revenue from handsets and accessories saw a slight decline of 3.6% year-over-year, reflecting a general slowdown in growth on the Russian market.
According to MTS estimates, in Q3 2019, growth of the Russian smartphone market decelerated further to 3.4% year-over-year in monetary terms while unit volumes declined for the first time in three years totaling 8m devices (-2% year-over-year). As a result, the average smartphone price increased to RUB 15,900.
By the end of Q3 2019, smartphone penetration on MTS’s network reached 73.3% while mobile internet penetration increased to 62.2%.
MTS Retail (# of stores at the end of the period)(11)
MTS’s retail footprint saw a slight decrease, standing at 5,857 stores at the end of the quarter. In addition, revenue from online sales increased 1.5% year-over-year to RUB 2.1 bn in Q3 2019.
1-month active users of MyMTS app (m)
The MyMTS app continued to grow in popularity, reaching 19.5m monthly active users (MAU) by the end of Q3 2019.
UKRAINE
in UAH bn unless indicated otherwise
Ukraine highlights |
| Q3 2019 |
| Q3 2018 |
| Change, % |
|
Revenue |
| 4.3 |
| 3.3 |
| 29.7 | % |
OIBDA |
| 2.4 |
| 1.8 |
| 28.9 | % |
margin |
| 54.6 | % | 54.9 | % | -0.3 | p.p. |
Net profit |
| 0.9 |
| 0.4 |
| >100 | % |
margin |
| 20.5 | % | 11.8 | % | 8.7 | p.p. |
In Ukraine, revenue grew by 29.7% year-over-year, reaching UAH 4.3 bn supported by surging data consumption and increasing retail sales.
OIBDA was up 28.9% year-over-year and totaled UAH 2.4 bn as a result of the observed strong top-line performance. OIBDA margin stood at 54.6%.
In Q3 2019, the Group continued to expand its network in Ukraine. By the end of the reporting period, 4G and 3G coverage reached 66% and 86% of Ukraine’s population, respectively. The total number of subscribers using data services amounted to 10.0m.
In Q3 2019, the Group saw a slight increase in subscribers of 1.2% quarter-over-quarter to 19.8m.
(11) Including franchises
ARMENIA AND BELARUS
in AMD bn unless indicated otherwise
Armenia highlights |
| Q3 2019 |
| Q3 2018 |
| Change, % |
|
Revenue |
| 14.7 |
| 15.0 |
| -1.9 | % |
OIBDA |
| 7.6 |
| 7.4 |
| 1.7 | % |
margin |
| 51.3 | % | 49.5 | % | 1.8 | p.p. |
Net profit |
| 2.5 |
| 3.3 |
| -23.0 | % |
margin |
| 17.2 | % | 21.8 | % | -4.6 | p.p. |
In Armenia, revenue slightly decreased by 1.9% year-over-year in Q3 2019 to AMD 14.7 bn, with negative impacts from lower interconnect rates, as well as a continuing decline in voice service revenue. At the same time, OIBDA saw a positive dynamic, up 1.7% year-over-year to reach AMD 7.6 bn with OIBDA margin increasing to 51.3% mainly as a result of OPEX savings.
MTS’s subscriber base in Armenia was up 3.2% quarter-over-quarter totaling 2.2m.in
BYN m unless indicated otherwise
Belarus highlights |
| Q3 2019 |
| Q3 2018 |
| Change, % |
|
Revenue |
| 274.8 |
| 235.9 |
| 16.5 | % |
OIBDA |
| 148.4 |
| 137.3 |
| 8.1 | % |
margin |
| 54.0 | % | 58.2 | % | -4.2 | p.p. |
Net profit |
| 84.4 |
| 61.9 |
| 36.5 | % |
margin |
| 30.7 | % | 26.2 | % | 4.5 | p.p. |
In Belarus, which is not consolidated, the company’s operations continued to see strong top-line growth in Q3, with revenue increasing 16.5% year-over-year, totaling BYN 274.8 m. This was driven by rising data consumption, as well as solid performance in retail sales.
In Q3 2019, OIBDA grew by 8.1% year-over-year to reach BYN 148.4 m supported by increasing mobile service revenues, as well as growing retail margins. OIBDA margin stood at 54.0%.
The subscriber base in Belarus increased by 1.6% quarter-over-quarter, reaching 5.6m.
2019 AMENDED OUTLOOK
MTS has adopted IFRS 9, Financial Instruments; IFRS 15, Revenue from Contracts with Customers; and IFRS 16, Leases from January 1st 2018. Outlook includes the effect from IFRS 9, 15 and 16, and the effect from the consolidation of MTS Bank.
Group Revenue:
MTS revises its current 2019 guidance and now forecasts 6—7% revenue growth, based on the following factors:
· A stable competitive environment in Russia;
· The effect of the consolidation of MTS Bank;
· Rising data consumption and weaker voice usage;
· Regulatory changes, including the cancellation of internal roaming and VAT increase in Russia;
· The high base effect of 2018 in retail sales;
· Continued growth in UAH-denominated revenues in Ukraine; and
· Service revenues in other foreign subsidiaries and volatility in relation to the Russian ruble.
Group OIBDA:
MTS upgrades its outlook on Group OIBDA growth rate to 4-5% in consideration of the following factors:
· Market sentiment and the prospective growth in usage of high-value products;
· Reduced SIM card sales as a result of improved churn in the market;
· The high base effect of 2018 and positive one-off in Q1 2019;
· Changes in the regulatory environment;
· Increases in labor costs; and
· Macroeconomic developments and currency volatility throughout our markets of operation.
Group CAPEX:
FY2018 — FY 2019 CAPEX spending is estimated to be RUB 160 bn, due to a number of factors:
· Further incremental improvements and enhancements to LTE networks;
· Implementation of infrastructure and spectrum sharing projects within Russia;
· Roll-out of LTE services in Ukraine;
· Evolution of commercial 5G solutions and introduction into Russian market; and
· Continued investment in digital products and services.
Overall, for 2019 MTS expects its CAPEX spending to be up to RUB 90 bn (including investments required for the Yarovaya Law).
Yarovaya law
On April 12, 2018, the Russian Government adopted Federal Law No 374-FZ dated July 6, 2016, or the so-called “Yarovaya Law”, which governs data storage requirements. Telecom operators are now directed to store voice and SMS communications beginning from July 1, 2018 and are required to store data communications from October 1, 2018. Operators are required to store data for up to six months, all of which will require investments in storage capabilities. Current adjusted MTS estimate of the additional investment necessary to comply with the Yarovaya law stands at RUB 50 bn.
CONFERENCE CALL DETAILS
The management of Mobile TeleSystems (MTS) will be holding a conference call to discuss the Company’s Q3 2019 Financial and Operating Results on November 19, 2019.
The conference call will start at:
Moscow: 18:00
London: 15:00
New York: 10:00
To take part in the conference call, please dial one of the following telephone numbers and enter the confirmation code, 82115144#
From Russia:
+7 495 646 93 15 (Local access)
8 800 500 98 63 (Toll free)
From the UK:
+44 207 194 37 59 (Local access)
0800 376 61 83 (Toll free)
From the US:
+1 646 722 49 16 (Local access)
1 844 286 06 43 (Toll free)
The webcast will be available at: https://webcasts.eqs.com/mobiletele20191119
A replay of the conference call will be available for 10 days at the following telephone numbers:
From Russia: +7 495 249 16 71 (Local access)
From the UK: +44 203 364 51 47 (Local access)
From the US: +1 646 722 49 69 (Local access)
Replay pass code: 418883400#
This press release provides a summary of the key financial and operating indicators for the period ended September 30, 2019. For full disclosure materials, please visit http://ir.mts.ru/investors/financial-center/financial-results/
CONTACT INFORMATION
Investor Relations Department
Mobile TeleSystems PJSC
Tel: +7 495 223 2025
E-mail: ir@mts.ru
Learn more about MTS. Visit the official blog of the Investor Relations Department at http://ir.mts.ru/ir-blog/ and follow us on Twitter: @MTS_IR
ATTACHMENTS
Attachment A
Non-IFRS financial measures.
This presentation includes financial information prepared in accordance with International Financial Reporting Standards, or IFRS, as well as other financial measures referred to as non-IFRS. The non-IFRS financial measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with IFRS. Due to the rounding and translation practices, Russian ruble and functional currency margins, as well as other non-IFRS financial measures, may differ.
Operating Income Before Depreciation and Amortization (OIBDA) and OIBDA margin. OIBDA represents operating income before depreciation and amortization. OIBDA margin is defined as OIBDA as a percentage of our net revenues. OIBDA may not be similar to OIBDA measures of other companies, is not a measurement under IFRS and should be considered in addition to, but not as a substitute for, the information contained in our consolidated statement of profit or loss. We believe that OIBDA provides useful information to investors because it is an indicator of the strength and performance of our ongoing business operations, including our ability to fund discretionary spending such as capital expenditures, acquisitions of mobile operators and other investments and our ability to incur and service debt. While depreciation and amortization are considered operating costs under IFRS, these expenses primarily represent the non-cash current period allocation of costs associated with long-lived assets acquired or constructed in prior periods. Our OIBDA calculation is commonly used as one of the bases for investors, analysts and credit rating agencies to evaluate and compare the periodic and future operating performance and value of companies within the wireless telecommunications industry. We use the term Adjusted for OIBDA and operating profit where there were items that do not reflect underlying operations that were excluded.
OIBDA and Adjusted OIBDA can be reconciled to our consolidated statements of profit or loss as follows:
Group (RUB bn) |
| Q3’18 |
| Q4’18 |
| Q1’19 |
| Q2’19 |
| Q3’19 |
|
Operating profit |
| 32.8 |
| 28.9 |
| 28.8 |
| 29.1 |
| 35.9 |
|
Add: D&A |
| 26.5 |
| 26.5 |
| 26.4 |
| 27.0 |
| 26.9 |
|
Loss from impairment of non-current assets |
| — |
| 0.1 |
| — |
| — |
| — |
|
Adjusted OIBDA |
| 59.3 |
| 55.6 |
| 55.3 |
| 56.1 |
| 62.8 |
|
Russia (RUB bn) |
| Q3’18 |
| Q4’18 |
| Q1’19 |
| Q2’19 |
| Q3’19 |
|
Operating profit |
| 32.1 |
| 29.6 |
| 28.7 |
| 28.8 |
| 33.9 |
|
Add: D&A |
| 23.4 |
| 23.2 |
| 23.0 |
| 23.5 |
| 23.4 |
|
Loss from impairment of non-current assets |
| — |
| 0.2 |
| — |
| — |
| — |
|
Adjusted OIBDA |
| 55.5 |
| 53.0 |
| 51.7 |
| 52.3 |
| 57.3 |
|
Ukraine (RUB bn) |
| Q3’18 |
| Q4’18 |
| Q1’19 |
| Q2’19 |
| Q3’19 |
|
Operating profit |
| 2.0 |
| 1.7 |
| 1.5 |
| 1.9 |
| 3.1 |
|
Add: D&A |
| 2.4 |
| 2.6 |
| 2.9 |
| 2.9 |
| 2.9 |
|
OIBDA |
| 4.4 |
| 4.4 |
| 4.4 |
| 4.8 |
| 6.1 |
|
Armenia (RUB m) |
| Q3’18 |
| Q4’18 |
| Q1’19 |
| Q2’19 |
| Q3’19 |
|
Operating profit |
| 370 |
| 92 |
| 157 |
| 255 |
| 374 |
|
Add: D&A |
| 637 |
| 677 |
| 630 |
| 657 |
| 649 |
|
OIBDA |
| 1,006 |
| 769 |
| 788 |
| 911 |
| 1,023 |
|
OIBDA margin can be reconciled to our operating margin as follows:
Group |
| Q3’18 |
| Q4’18 |
| Q1’19 |
| Q2’19 |
| Q3’19 |
|
Operating margin |
| 25.7 | % | 22.2 | % | 24.4 | % | 23.3 | % | 26.8 | % |
Add: D&A |
| 20.7 | % | 20.4 | % | 22.4 | % | 21.6 | % | 20.1 | % |
Loss from impairment of non-current assets |
| — |
| 0.1 | % | — |
| — |
| — |
|
Adjusted OIBDA margin |
| 46.3 | % | 42.8 | % | 46.8 | % | 44.8 | % | 46.9 | % |
Russia |
| Q3’18 |
| Q4’18 |
| Q1’19 |
| Q2’19 |
| Q3’19 |
|
Operating margin |
| 27.0 | % | 24.4 | % | 26.3 | % | 24.9 | % | 27.8 | % |
Add: D&A |
| 19.7 | % | 19.1 | % | 21.1 | % | 20.4 | % | 19.2 | % |
Loss from impairment of non-current assets |
| — |
| 0.1 | % | — |
| — |
| — |
|
Adjusted OIBDA margin |
| 46.6 | % | 43.6 | % | 47.4 | % | 45.3 | % | 47.0 | % |
Ukraine |
| Q3’18 |
| Q4’18 |
| Q1’19 |
| Q2’19 |
| Q3’19 |
|
Operating margin |
| 24.5 | % | 20.8 | % | 18.5 | % | 20.5 | % | 28.2 | % |
Add: D&A |
| 30.5 | % | 31.9 | % | 34.3 | % | 31.2 | % | 26.4 | % |
OIBDA margin |
| 54.9 | % | 52.7 | % | 52.8 | % | 51.7 | % | 54.6 | % |
Armenia |
| Q3’18 |
| Q4’18 |
| Q1’19 |
| Q2’19 |
| Q3’19 |
|
Operating margin |
| 18.2 | % | 4.4 | % | 8.7 | % | 13.8 | % | 18.8 | % |
Add: D&A |
| 31.2 | % | 33.0 | % | 34.8 | % | 35.5 | % | 32.5 | % |
OIBDA margin |
| 49.4 | % | 37.4 | % | 43.5 | % | 49.2 | % | 51.3 | % |
Attachment B
Definitions
Total debt. Total debt represents short-term and long-term debt excluding lease obligations and debt issuance costs.
Net debt. Net debt represents total debt less cash and cash equivalents, short-term investments, long-term deposits, SWAP and currency hedging. Our net debt calculation is commonly used as one of the bases for investors, analysts and credit rating agencies to evaluate and compare our periodic and future liquidity within the wireless telecommunications industry. The non-IFRS financial measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with IFRS.
Free Cash Flow. Free cash flow is represented by net cash from operating activities less cash used for certain investing activities. Free cash flow is commonly used by investors, analysts and credit rating agencies to assess and evaluate our performance over time and within the wireless telecommunications industry. Because free cash flow is not based in IFRS and excludes certain sources and uses of cash, the calculation should not be looked upon as an alternative to our consolidated statement of cash flows or other information prepared in accordance with IFRS.
Subscriber. We define a “subscriber” as an organization or individual, whose SIM-card:
· shows traffic-generating activity or
· accrues a balance for services rendered or
· is replenished or topped off
over the course of any three-month period, inclusive within the reporting period, and was not blocked at the end of the period.
MOBILE TELESYSTEMS
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
As of September 30, 2019 and As of December 31, 2018
(Amounts in millions of RUB)
|
| As of September 30, |
| As of December 31, |
|
|
| 2019 |
| 2018 |
|
NON-CURRENT ASSETS: |
|
|
|
|
|
Property, plant and equipment |
| 281,187 |
| 276,443 |
|
Investment property |
| 3,433 |
| 2,177 |
|
Right-of-use assets |
| 148,095 |
| 149,007 |
|
Intangible assets |
| 134,782 |
| 135,069 |
|
Investments in associates |
| 6,632 |
| 10,735 |
|
Deferred tax assets |
| 13,237 |
| 11,190 |
|
Other non-current non-financial assets |
| 5,290 |
| 5,038 |
|
Bank deposits and loans |
| 47,025 |
| 30,653 |
|
Other investments |
| 14,534 |
| 16,873 |
|
Accounts receivable (related parties) |
| 11,854 |
| 2,545 |
|
Other non-current financial assets |
| 5,734 |
| 7,329 |
|
Total non-current assets |
| 671,803 |
| 647,059 |
|
|
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
|
Inventories |
| 16,499 |
| 18,654 |
|
Trade and other receivables |
| 37,984 |
| 34,543 |
|
Accounts receivable (related parties) |
| 8,315 |
| 6,385 |
|
Bank deposits and loans |
| 38,922 |
| 32,385 |
|
Short-term investments |
| 15,700 |
| 47,863 |
|
VAT receivable |
| 11,088 |
| 7,415 |
|
Income tax assets |
| 2,560 |
| 3,887 |
|
Assets held for sale |
| 623 |
| 2,694 |
|
Advances paid and prepaid expenses and other non financial current assets |
| 5,179 |
| 5,546 |
|
Other financial current assets |
| 21,068 |
| 25,487 |
|
Cash and cash equivalents |
| 52,518 |
| 84,075 |
|
Total current assets |
| 210,456 |
| 268,934 |
|
|
|
|
|
|
|
Total assets |
| 882,259 |
| 915,993 |
|
|
|
|
|
|
|
EQUITY: |
|
|
|
|
|
Equity attributable to owners of the Company |
| 43,574 |
| 65,274 |
|
Non-controlling interests |
| 4,073 |
| 12,291 |
|
Total equity |
| 47,647 |
| 77,565 |
|
|
|
|
|
|
|
NON-CURRENT LIABILITIES: |
|
|
|
|
|
Borrowings |
| 277,209 |
| 365,072 |
|
Lease obligations |
| 146,698 |
| 144,740 |
|
Deferred tax liabilities |
| 21,670 |
| 24,439 |
|
Provisions |
| 5,314 |
| 3,391 |
|
Bank deposits and liabilities |
| 1,910 |
| 2,633 |
|
Other non-current financial liabilities |
| 251 |
| 481 |
|
Other non-current non-financial and contract liabilities |
| 1,983 |
| 2,201 |
|
Total non-current liabilities |
| 455,035 |
| 542,957 |
|
|
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
|
Borrowings |
| 98,602 |
| 3,063 |
|
Lease obligations |
| 18,063 |
| 15,812 |
|
Provisions |
| 9,542 |
| 70,911 |
|
Trade and other payables |
| 65,622 |
| 53,623 |
|
Accounts payable (related parties) |
| 1,055 |
| 1,301 |
|
Bank deposits and liabilities |
| 137,318 |
| 108,821 |
|
Income tax liabilities |
| 1,841 |
| 1,792 |
|
Other current financial liabilities |
| 1,381 |
| 4,648 |
|
Other current non-financial and contract liabilities |
| 46,153 |
| 35,500 |
|
Total current liabilities |
| 379,577 |
| 295,471 |
|
|
|
|
|
|
|
Total equity and liabilities |
| 882,259 |
| 915,993 |
|
MOBILE TELESYSTEMS
CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
FOR THE THREE AND NINE MONTHS ENDED
SEPTEMBER 30, 2019 AND 2018
(Amounts in millions of RUB except per share amount)
|
| Nine months |
| Nine months |
| Three months |
| Three months |
|
|
| September 30, |
| September 30, |
| September 30, |
| September 30, |
|
Service revenue |
| 327,906 |
| 302,581 |
| 114,973 |
| 107,519 |
|
Sales of goods |
| 49,150 |
| 47,648 |
| 18,909 |
| 20,439 |
|
Revenue |
| 377,056 |
| 350,229 |
| 133,882 |
| 127,958 |
|
|
|
|
|
|
|
|
|
|
|
Cost of services |
| (92,310 | ) | (82,180 | ) | (31,435 | ) | (30,265 | ) |
Cost of goods |
| (45,943 | ) | (43,945 | ) | (17,626 | ) | (19,146 | ) |
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
| (70,223 | ) | (63,215 | ) | (24,189 | ) | (21,666 | ) |
Depreciation and amortization |
| (80,323 | ) | (78,063 | ) | (26,930 | ) | (26,455 | ) |
Other operating income |
| 2,080 |
| 1,613 |
| 884 |
| 1,443 |
|
Operating share of the profit of associates |
| 3,500 |
| 2,809 |
| 1,298 |
| 974 |
|
Operating profit |
| 93,837 |
| 87,248 |
| 35,884 |
| 32,843 |
|
|
|
|
|
|
|
|
|
|
|
Currency exchange gains / (loss) |
| 1,966 |
| (2,946 | ) | 63 |
| (1,849 | ) |
|
|
|
|
|
|
|
|
|
|
Other (expenses)/income: |
|
|
|
|
|
|
|
|
|
Finance income |
| 3,976 |
| 3,837 |
| 1,053 |
| 1,415 |
|
Finance costs |
| (36,695 | ) | (26,074 | ) | (12,959 | ) | (7,394 | ) |
Other (expenses) / income |
| (3,092 | ) | 2,107 |
| 1,086 |
| 607 |
|
Total other expenses, net |
| (35,811 | ) | (20,130 | ) | (10,820 | ) | (5,372 | ) |
|
|
|
|
|
|
|
|
|
|
Profit before tax from continuing operations |
| 59,992 |
| 64,172 |
| 25,127 |
| 25,622 |
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
| (14,076 | ) | (14,817 | ) | (6,461 | ) | (6,220 | ) |
|
|
|
|
|
|
|
|
|
|
Profit for the period from continuing operations |
| 45,916 |
| 49,355 |
| 18,666 |
| 19,402 |
|
|
|
|
|
|
|
|
|
|
|
Discontinued operation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain/(Loss) after tax for the period from discontinued operation* |
| 3,443 |
| (55,752 | ) | — |
| (55,752 | ) |
|
|
|
|
|
|
|
|
|
|
Profit/(Loss) for the period |
| 49,359 |
| (6,397 | ) | 18,666 |
| (36,350 | ) |
|
|
|
|
|
|
|
|
|
|
Profit for the period attributable to non-controlling interests |
| (664 | ) | (919 | ) | (272 | ) | (670 | ) |
|
|
|
|
|
|
|
|
|
|
Profit/(Loss) for the period attributable to owners of the Company |
| 48,695 |
| (7,316 | ) | 18,394 |
| (37,020 | ) |
|
|
|
|
|
|
|
|
|
|
Other comprehensive income/(loss) |
|
|
|
|
|
|
|
|
|
Items that will not be reclassified subsequently to profit or loss |
|
|
|
|
|
|
|
|
|
Unrecognised actuarial gain |
| — |
| 228 |
| — |
| — |
|
Items that may be reclassified subsequently to profit or loss |
|
|
|
|
|
|
|
|
|
Exchange differences on translating foreign operations |
| 944 |
| 4,920 |
| 3,734 |
| (630 | ) |
Net fair value (loss) / gain on financial instruments |
| (237 | ) | (554 | ) | (9 | ) | 25 |
|
Other comprehensive income / (loss) for the period |
| 707 |
| 4,594 |
| 3,725 |
| (605 | ) |
Total comprehensive income / (loss) for the period |
| 50,066 |
| (1,802 | ) | 22,392 |
| (36,955 | ) |
Less comprehensive income for the period attributable to the noncontrolling interests |
| (664 | ) | (931 | ) | (272 | ) | (682 | ) |
|
|
|
|
|
|
|
|
|
|
Comprehensive income / (loss) for the period attributable to owners of the Company |
| 49,402 |
| (2,733 | ) | 22,120 |
| (37,637 | ) |
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding, in thousands - basic |
| 1,783,665 |
| 1,885,741 |
| 1,772,885 |
| 1,876,421 |
|
Earnings per share attributable to the Group - basic: |
|
|
|
|
|
|
|
|
|
EPS from continuing operations |
| 25.37 |
| 25.69 |
| 10.38 |
| 9.98 |
|
EPS from discontinued operation |
| 1.93 |
| (29.57 | ) | — |
| (29.71 | ) |
Total EPS - basic |
| 27.30 |
| (3.88 | ) | 10.38 |
| (19.73 | ) |
Weighted average number of common shares outstanding, in thousands - diluted |
| 1,786,707 |
| 1,888,046 |
| 1,774,499 |
| 1,878,142 |
|
Earnings per share attributable to the Group - diluted: |
|
|
|
|
|
|
|
|
|
EPS from continuing operations |
| 25.33 |
| 25.65 |
| 10.37 |
| 9.97 |
|
EPS from discontinued operation |
| 1.93 |
| (29.53 | ) | — |
| (29.68 | ) |
Total EPS - diluted |
| 27.25 |
| (3.88 | ) | 10.37 |
| (19.71 | ) |
*Recognition of provision for liability with respect to SEC and DOJ investigation and related currency exchange gain
MOBILE TELESYSTEMS
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2019 AND 2018
(Amounts in millions of RUB)
|
| Nine months ended |
| Nine months ended |
|
|
| September 30, 2019 |
| September 30, 2018 |
|
Profit/(Loss) for the period |
| 49,359 |
| (6,397 | ) |
|
|
|
|
|
|
Adjustments for: |
|
|
|
|
|
Depreciation and amortization |
| 80,323 |
| 78,063 |
|
Finance income |
| (3,976 | ) | (3,837 | ) |
Finance costs |
| 36,695 |
| 26,074 |
|
Income tax expense |
| 14,076 |
| 14,817 |
|
Currency exchange (gain) / loss |
| (5,409 | ) | 2,946 |
|
Change in fair value of financial instruments |
| 5,239 |
| (3,554 | ) |
Share of the profit of associates |
| (6,966 | ) | (2,252 | ) |
Inventory obsolescence expense |
| 1,510 |
| 2,288 |
|
Allowance for doubtful accounts |
| 2,045 |
| 1,937 |
|
Bank reserves |
| 2,637 |
| 236 |
|
Change in provisions |
| 12,243 |
| 10,968 |
|
Provision for liability with respect to SEC and DOJ investigation |
| — |
| 55,752 |
|
Other non-cash items |
| (6,343 | ) | (2,036 | ) |
|
|
|
|
|
|
Movements in operating assets and liabilities: |
|
|
|
|
|
(Increase)/Decrease in trade and other receivables and contract assets |
| (6,476 | ) | 1,108 |
|
Increase in bank deposits and loans |
| (25,907 | ) | (6,686 | ) |
Decrease/(Increase) in inventory |
| 634 |
| (11,498 | ) |
Increase in VAT receivable |
| (3,637 | ) | (1,786 | ) |
Decrease in advances paid and prepaid expenses |
| 2,839 |
| 1,397 |
|
Decrease in trade and other payables, contract liabilities and other liabilities |
| (5,962 | ) | (16,620 | ) |
Increase in bank deposits and liabilities |
| 28,718 |
| 1,806 |
|
|
|
|
|
|
|
Payment of fines and penalties related to SEC investigation into former operations in Uzbekistan |
| (55,607 | ) | — |
|
Dividends received |
| 2,525 |
| 2,525 |
|
Income taxes paid |
| (17,667 | ) | (14,979 | ) |
Interest received |
| 4,238 |
| 7,052 |
|
Interest paid, net of interest capitalised |
| (34,879 | ) | (27,103 | ) |
Net cash provided by operating activities |
| 70,252 |
| 110,221 |
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
Acquisition of subsidiary, net of cash acquired |
| (2,052 | ) | (3,458 | ) |
Purchases of property, plant and equipment |
| (45,000 | ) | (44,660 | ) |
Purchases of other intangible assets |
| (16,087 | ) | (10,758 | ) |
Cost to obtain and fulfill contracts |
| (3,692 | ) | (3,524 | ) |
Purchases of 4G licenses in Ukraine and Armenia |
| (255 | ) | (5,527 | ) |
Purchase of Avantage |
| — |
| (7,559 | ) |
Proceeds from sale of property, plant and equipment and assets held for sale |
| 5,067 |
| 3,924 |
|
Purchases of short-term and other investments |
| (14,862 | ) | (16,389 | ) |
Proceeds from sale of short-term and other investments |
| 41,842 |
| 34,503 |
|
Investments in associates |
| — |
| (3,871 | ) |
Cash payments and proceeds related to SWAP contracts |
| (781 | ) | 6,001 |
|
Proceeds from sale of associates |
| 3,067 |
| — |
|
Other investing activities |
| 5 |
| — |
|
Net cash used in investing activities |
| (32,748 | ) | (51,318 | ) |
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
Cash flows from transactions under common control |
| (13,866 | ) | (6,872 | ) |
Repayment of loans |
| (90,704 | ) | (19,106 | ) |
Proceeds from loans |
| 52,872 |
| 95,000 |
|
Repayment of notes |
| (189 | ) | (17,225 | ) |
Proceeds from issuance of notes |
| 47,500 |
| 27,550 |
|
Notes and debt issuance cost paid |
| (71 | ) | (39 | ) |
Finance lease obligation principal paid |
| (11,240 | ) | (9,483 | ) |
Dividends paid |
| (36,541 | ) | (45,244 | ) |
Cash outflow under credit guarantee agreement related to foreign-currency hedge |
| — |
| (981 | ) |
Repurchase of own shares |
| (15,922 | ) | (14,583 | ) |
Other financing activities |
| 342 |
| 121 |
|
Net cash (used in) / provided by financing activities |
| (67,819 | ) | 9,138 |
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents |
| (1,242 | ) | 2,517 |
|
|
|
|
|
|
|
NET (DECREASE) / INCREASE IN CASH AND CASH EQUIVALENTS: |
| (31,557 | ) | 70,558 |
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS, at beginning of the period |
| 84,075 |
| 30,586 |
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS, at end of the period |
| 52,518 |
| 101,144 |
|