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MTS raises dividend forecast on Russian growth prospects
2014-02-04 15:55:00| Telecompaper Headlines
(Telecompaper) Russia and CIS operator MTS said it expects to pay more in dividends to shareholders in the coming years, as solid growth in its main markets supports on increase in cash flow. At an investor day in Moscow, MTS said it expects to pay out at least RUB 90 billion over 2014 and 2015, higher than previous years thanks to a rise in free cash flow and strong operating results. For 2014, MTS forecast 5 percent growth in its revenues and OIBDA growth of at least 6.5 percent. This is expected to slow in the following years, giving a CAGR of 3-5 percent for revenues and at least 2 percent in OIBDA over the period 2013-2016. MTS expects the overall Russian telecommunications market to grow at a CAGR of 3 percent during the forecast period, while the Moscow fixed-line market alone should reach 4 percent average annual growth. Revenues at its Moscow subsidiary, MGTS, are expected to grow as much as 10 percent per year through 2016, supported by the upgrade and expansion of its broadband services.
Tags: growth
russian
prospects
forecast
Category:Telecommunications