Mobile TeleSystems PJSC (MBT) 2021 Q1 法說會逐字稿

Dear ladies and gentlemen, welcome to the conference call of Mobile TeleSystems. At our customers' request, this conference will be recorded. (Operator Instructions)

May I now hand you over to Polina Ugryumova, Director of Investor Relations, who will lead you through this conference. Please go ahead.

Welcome, everybody, to today's event to discuss MTS's first quarter 2021 financial and operating results.

Before we start, I must remind you that, except historical information, any comments made during this call may constitute forward-looking statements. Important factors could cause our actual results to differ materially from those contained in our projections or forward-looking statements. This, in turn, imply certain risks, a more thorough discussion of which are available in our annual report and Form 20-F or the materials we have distributed today. MTS disavows any obligation to update any previously made forward-looking statements spoken on this conference call or make any adjustments to previously made statements to reflect changes in risks.

I also wanted to mention that following the sale of NVision, we have (inaudible) revenue into other services. For your convenience, we have retrospectively restated our profit and loss statement in our summary financial file, which is available on our IR website together with the press release and presentation for this call.

Today's presenters are Slava Nikolaev, President and Chief Executive Officer, Inessa Galaktionova, First Vice President for Telecommunications; Andrey Kamensky, Vice President for Finance; and Ilya Filatov, Vice President for Financial Services and CEO of MTS Bank, who will speak in Russian and I will translate.

So with that, let me turn it over to Slava to get us started.

Thank you, Polina, and thanks to everyone joining the call today.

This is my first call as CEO. I wanted to start with just a few words about where we're starting to begin and where we're headed going forward. Overall, our strategy remains unchanged. We are continuing to execute our two-pronged approach to build out an ecosystem of digital services while maintaining mobile market leadership.

Looking ahead, you can expect to see continued (inaudible) as we move forward (inaudible). At the same time, we are going to put a sharper focus on concentrating our firepower to rapidly reach commercial scale along promising growth vectors. Context matters. In Russia, consumers prefer local content and corporates prefer domestic solutions. As a telco, this is, frankly, a unique opportunity. We are going to take full advantage of it.

I am pleased to report we are off to an excellent start in 2021. Consolidated group revenue for the quarter was up 5.5% year-over-year, nearly RUB 124 billion, with solid contributions from all 4 of our verticals. Notably, areas beyond connectivity contributed more than 1/3 of the total upside with fintech leading the way, followed by cloud and digital solutions as well as media.

Turning to the OIBDA waterfall. For the quarter, group adjusted OIBDA was up 6.7% year-over-year, supported by solid contributions from core services, which more than offset headwinds from the loss of high-margin roaming revenue as well as the material contribution from MTS Bank and other factors.

A few words on this digital news. First, I'd like to welcome Olga Ziborova as Vice President of Ecosystem Development and Marketing. Going forward, Olga will be leading our efforts to further refine our ecosystem products, services and bundles.

Overall, we continue to see robust uptake and engagement across the ecosystem. Over the past 3 quarters, revenue from ecosystem clients has increased from around 19% to 23% of total B2C revenue. That's compared to ecosystem client penetration at less than 6% of where B2C was in Q1. So we still have a long runway for sustainable growth.

Turning to products. Users of our ecosystem subscription, MTS Premium, are up around 50% over the past 6 months. Earlier, we have made this available for free to high-end subscribers that met a minimum spending threshold. In Q1, we shifted to [paid] for new ads while also revamping the offer to a more generous benefit package that includes unlimited data and a half-year of video-on-demand content.

Our loyalty program, MTS Cashback, continues to draw in new users of 11.1 million registered subscription in Q1. On the app side, we've reached nearly 25 million active users of our self-care app, MyMTS, more than half of all smartphone users in our network. Another critical gateway into our ecosystem, which reached an all-time high in the ARPU of MyMTS users being more than 10% above average.

We are also seeing good traction with Netarif, our new tariff app that combines (inaudible) activity and digital services. Based on our forward tracking, we're seeing higher [uplift] than our previous flagship tariff called Tarifishche and more than 30% above the B2C average with the upside roughly evenly spread between ARPU and retention. We're also seeing high engagement with the majority of new adds [to Netarif] that are actively customizing their plan instead of opting for the default configuration.

In fintech, we reached 2.6 million bank clients with open accounts, deposits and loans. Encouragingly, year-over-year growth in daily banking clients outpaced total clients, which is in line with our focus on increasing the frequency of [restructuring].

Turning to media. At the end of Q1, we approached nearly 3 million OTT users, nearly tripling from just a year ago. Historically, our OTT offering was a mobile first app with smartphone users accounting for the vast majority of users. We are now seeing robust diversification across platforms. For example, active Smart TV users have increased more than 10x since last summer and today make up a significant share of the total.

In April, we reached a major media milestone with the launch of a radical design of our OTT platform, which has been rebranded as KION. This is a fully compelling and differentiated home entertainment experience. KION features hundreds of linear TV channels, thousands of licensed on-demand titles; and for the first time, a select slate of original content, which we are calling KION Originals.

To give a bit of color, it's not (inaudible), but a suite of stories across drama and comedy series as well as documentaries and feature films. We are also pioneering a new format, which we believe gives the viewer flexibility in choosing between episodes or full length stories.

As we execute on content, our top priority is managing our (inaudible) in a deliberate manner, keeping a laser focus on return on investment and business KPIs around engagement, retention and lifetime value. Being very active in showcasing and promoting the platform, we've launched a nationwide advertising [project] with leading celebrity artists and social media influencers. We estimate we reached 20 million subscribers. In just the first few weeks of launch, we're already seeing higher app installed. With that said, we're still less than a month out since launch, and we will hold off on sharing more details until we have a longer trend line.

Looking ahead, Q1 will be a foundational component of our ecosystem. The media market is poised to be disrupted as (inaudible). In the long term, we think we can be a top 3 player in Russia with users of 20 million.

On that positive note, let me hand it over to Inessa for telecom and B2B update.

Thank you, Slava.

In Q1, we continued to see robust dynamics in core communications. In mobile connectivity, service revenue in Russia was up 2.3% to RUB 82 billion on the back of solid domestic demand growth. (inaudible) largely reflected from relatively early tariff adjustments in 2020. There was also a negative impact on a comparable basis from the extra Leap day. In addition, we continue to see (inaudible) from the pandemic-related drop in international roaming [revenue].

Looking ahead, we expect strong (inaudible) or even (inaudible) beginning in Q2 on lower comparables. Although even in our worst-case scenarios, we expect the high-end roaming to remain well below prepandemic level. Our 3-month mobile subscribers in Russia dipped slightly downwards to 78.4 million. So (inaudible) in subscriber quality. And in Q1, we (inaudible) in our loyal customer base in the past 12 months or longer as well as our [end] users. We expect to continue to differentiate away from connectivity as a stand-alone service; instead, deepen engagement through complementary services and bundle offers.

In fixed line. In Q1, we successfully sustained our momentum in broadband. B2C revenue was up 7.5% year-over-year when excluding telephony. Residential broadband net adds also continued [and passed] 8 million. Subscribers is our top priority, and we continue to invest in our [backhaul] and [emphasis will be given] so they will be [B2B] in more than 30 cities. We'll also continue to execute in our B2G projects to build our connectivity to 5,000 socially important facilities, such as food and medical clinics. In March, we issued our first -- very first social bond to help fund the project.

Overall, we're on the schedule to achieve the goals we set last year, and we are now executing on the third and final phase. This is a further demonstration of our commitment to help build an exclusive digital future for all members of society.

In retail, we saw strong double-digit growth of 16.4% year-over-year in sales of handsets and accessories. This part likely reflects a spike in demand due to the timing of device upgrade cycle.

We also continue to execute on our channel diversification strategy with e-commerce sales doubling year-over-year. In Moscow, we have launched new showrooms in some of the city's most highly trafficked shopping districts. These showrooms provide a richer shopping experience with the dedicated launch of gaming wearable devices and smart home gadgets.

On the product side, we recently launched a new tariff plus devices, bundled together with Samsung, which are aimed at boosting our subscriber conversion rate from device sales. And across our network, we're making good progress on enhancing touch point quality with in-store transaction NPS topping 70.

Finally, a brief update on B2B. As you know, last year was unprecedented time for digital acceleration at the global level. Our customers are continuing to embrace digital transformation, and MTS is a trusted partner in that process. We were proud to recently be recognized in the customer experience world awards as providing the best B2B customer experience in telecom service in Russia. In Q1, our cloud and digital solutions vertical rolled rapid double-digit growth with revenue up nearly 30% year-over-year. We also continue to be a leader in the private LTE for enterprise clients, a promising indicator towards future 5G projects.

With that, let me hand it to Ilya for a fintech update.

[Interpreted] Thank you, Inessa.

I'm happy to present our strong Q1 results for fintech and MTS Bank. But first, I would like to note that based on full year data, MTS Bank was recognized as the 8th largest Russian bank by credit card portfolio and the #1 bank in terms of point-of-sale loan growth.

In 2021, we continue steadily executing on our strategy with a focus on developing digital channels. In Q1, for the first time we reached more than half of all loan product sales through [digital] channels (inaudible).

In the first quarter, we saw healthy dynamics in our retail loan portfolio, growing 35% year-over-year before provisions, which served as the key driver for our overall credit portfolio growth. On the back of this loan growth and the lack of additional provisions (inaudible) during last year, net interest income in the first three months of the year grew 14% year-over-year to RUB 4 billion.

Net fee and commission income increased 39% year-over-year, reaching over RUB 2 billion, contributing 35% of overall operating income before provisions. Moreover, fee and commission income accounted for more than half of total retail operating income before provisions. Net income increased to nearly RUB 1.5 billion and return on average reached double digits, 16% versus 5% in the year ago quarter.

Cost of risk for the retail loan portfolio declined to 5.2% from 5.4% a quarter ago. In the retail segment, cost of risk increased slightly to 8.3%, reflecting the active issuance of retail products and provisioning for the expanding loan portfolio. The share of nonperforming retail loans declined to 8.8% in Q1 versus 9.5% in Q4. Overall, the bank remains committed to a conservative approach to reserves with year-end NPL coverage standing at 130%.

We remain at comfortable level of capitalization. As of 1st of April, our N1.1 capital adequacy ratio of (inaudible), which reflects a safety margin above minimum regulatory environments of 10.5%.

Looking ahead, we see promising growth opportunities, and we are continuing to expand our customer base and realize ecosystem synergies with MTS.

Now let me give the floor to Andrey.

Thank you, Ilya.

In the first quarter, group net profit decreased 8.8% year-over-year to RUB 16.2 billion. Net profit was supported by (inaudible), including solid performance (inaudible) as well as the positive impact from a decline in cost of debt on a year-over-year basis. In addition, growth was constrained by a high base effect in the year ago quarter due to a significant noncash impact from FX effects and operations with derivatives. Excluding this last factor, group net profit increased 9.5% year-over-year.

Now a few words on CapEx. At our last call in March, we announced a higher CapEx planned for 2021. There are 3 factors driving that increase: first, a fixed drag in equipment procurement; the second, deliberate investments in new growth areas; and the third, short-term allocation for a major radio swap project in Moscow.

In line with the outlook we gave you, capital expenditures in the first quarter amounted to RUB 29.3 billion. We regard this higher CapEx intensity as a temporary ramp-up as we invest in our future, not a new run rate. In this context, group free cash flow, excluding MTS Bank and cash proceeds from the sale of Vodafone Ukraine, stood at RUB 11.3 billion for the first 3 months of the year.

Turning to the balance sheet. Our treasury team has made great progress in optimizing our debt portfolio amid the lower interest rate environment we have seen in the past few years.

As Inessa mentioned, we recently issued the company's debut social bonds, which are in line with the social bond principles of the International Capital Markets Association. We were happy to see very high (inaudible) during building, including from smaller institutions and retail vendors. [We had nearly 3,200] versus a few dozen or so large fixed income investors that we see in a typical issuance. At the end of first quarter, our gross weighted average interest rate stood at 6.5%.

We believe we timed our refinancing actions well, and we feel good about our debt position now that rates have begun to increase. Moreover, we continue to enjoy a healthy leverage, and our leverage remains at a very comfortable level of 1.5 net debt-to-EBITDA ratio.

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

Thank you, Andrey.

I'm very encouraged by our performance and results. We delivered a strong start in Q1, and we are on track to deliver solid results for the full year. At this time, we are reaffirming our existing full year outlook that we gave you back in March of at least 4% growth in revenue and OIBDA and CapEx of RUB 100 billion to RUB 110 billion. That said, there could be some potential to revise it later in the year, in particular, depending on how much travel and roaming resumes this summer.

Turning to shareholder returns. In March, the Board of Directors authorized a further RUB 15 billion of stock buyback. And we've already spent more than RUB 5 billion in the program. In addition, the Board has recommended a full year 2020 dividend of RUB 26.51 per ordinary share to be approved by shareholders at the AGM in June. We continue to target to raise dividend payout in 2021 above the RUB 29.5 we paid in calendar year 2020.

Finally, I'd also like to highlight that the Board recently set up a dedicated ESG Committee aimed at strengthening corporate governance, environmental initiatives and corporate social responsibility. We recognize ESG as an increasingly important factor for investors in their decision-making process, and we are committed to enhancing our transparency and disclosure around ESG.

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

Thank you, Slava. And thank you to the rest of the people. (Operator Instructions)

With this, let's open the line for questions.

(Operator Instructions) And the first question we've received is from Ivan Kim.

Three questions, if I may. First, you raised price at the end of February and March and I know that Tele2 raised price in January, too. Did you see other operators adjust their prices higher as well from the start of the year? That's the first question.

The second question is on factors influencing EBITDA. So can you please comment on RUB 1.5 billion of other was the factors influencing EBITDA year-on-year this quarter and whether we can expect anything similar in the remainder of the year? And just probably a technical question on your paid OTT subscribers.

Can you please repeat the third question, which related to paid OTT subscribers?

Yes. Just how many of those you have. Because you showed the total number of OTT subscribers, I was just wondering how many of those are parts -- are they open or some of them are eligible for the service within their subscription?

Okay, Ivan, I will take the first question. This is Inessa, I'm responsible for telecom. So usually, on the telecom market, there is a practice to make price indexation review tariffs beginning of the year. Actually, this is a common practice for all telecom operators to do that beginning of the year, so in the first quarter. We did it later this quarter. So as you mentioned correctly, end of February, beginning of March. So our colleagues on the market also review prices in the first quarter.

Yes. This is Andrey. The second question with regard to the factors on OIBDA. The positive impact on OIBDA from other factors primarily relates to the effect of one-off OpEx provision in Q1 2020 that resulted in a low pace in the first quarter on a year-over-year basis. So we expect that from the provision to be overall neutral in the first half of the year.

And the last question, I think it's the most difficult because the -- it's really difficult to define what is a paid OTT subscriber. I will explain why. Because if you look at the common market practice, you would, for example, see that there are users of younger class that have access to [info]. The big question is whether those guys are paid users or not. They are paying. And we have the similar -- very similar practice with the premium service and other possible service.

So in this instance, I can tell you that we are not looking for OTT users that will not bring any value to the company, including -- by the way, including the advertising revenues that could come. We don't have this system now, but I think any combined (inaudible) is looking into the system again. It's becoming (inaudible) because of the possibility to target this advertising, which makes it much more commercially viable. So the number of OTT subscribers we report, they usually include subscribers that get revenue to the company through different channels, but they're not free users, generally. So that's -- maybe it's a little long, but the question is not as easy as it looks.

May I just follow up on the provision. So did I understand correctly that you said that overall, it's going to be neutral for the first half. So there will be some -- yes. I'm not sure how to understand that. So there will be some negative impact on the second quarter? Or...

Yes. I mentioned that actually, if we compare this year to the previous year, that it would be neutral, yes, the comparison because it was the low base of 2020 when we made this provision. Therefore, you see now this positive impact. And if we compare the first half of the year of 2021 to 2022 -- 2020, it would be neutral. That's what I mentioned.

The next question is from Alexander Vengranovich of Renaissance Capital.

Yes. Three questions from my side. So first one, on the assumptions you used for your roaming revenue forecast for this year, can you remind us what sort of outlook you have for roaming revenues by the quarters, if possible, in order to understand what sort of a potential upside can we have if travel restrictions are more or less lifted because the core geographies for travels -- of actually tourists? That's the first question. Second question is on your mobile retail network. So I was a bit surprised to see the second quarter growth of the number of the stores, which I think is a bit contradicting to what you've been saying before as basically the long-term target of mobile retail network optimization remains intact. So I'm just wondering what was driving that, whether it was sort of a timing effect of the reopening of the new showrooms? Or do you feel that there might be some competitive situation which really prevents you to optimize your network further?

And the third question is again on KION. Can you please indicate the scale of the content investments related to KION this year, maybe and until '23? Which do you think is required to achieve your goals on the number of users and your top 3 position on the market? And related to that, what do you think could be the key issues for KION to achieve these targets?

Okay. I will take the first question. On roaming revenue forecast, of course, we never made any firm assumptions on that. We are generally assuming it rather conservatively, and that was reflected in my part of presentation. So nothing particular. It would be pure speculation to set a date when this go will -- or the limitations will be lifted.

Second question goes to Inessa.

Regarding retail network. So actually, we, Alexander, appreciate that you are very careful with all the figures we provide for retail. And so you have very carefully calculated. But I just want to address your attention that actually those small fluctuations, which is less than 2%, does not reflect any strategy behind that.

This is actually a normal operational business, which sometimes require -- make some shops to be closed because we are searching for new good locations. And in some regions, it requires to lower, for example, less quality channels like local dealers and local distribution and invest more in our own retail chain, which has more quality. That's why I ask you not just to pay such a huge attention to those small figures because, again, we'll repeat that right now, we are very stable in terms of number of our stores.

In the coming few -- I mean in the coming quarter or half a year, we don't plan any big optimization as it was announced 1 year ago. And we actually made that as we promised. In the coming months, we don't expect any optimization. As soon as we have in our plan, the strategy, we'll definitely share with you because that will be something behind that. I mean the strategy. Right now, this is just a small alteration of 2020 kind of changes from the strategy.

And then the third question on scale of content investment, we are not disclosing the particular -- the exact figure. But I can tell you that it's not groundbreaking. We are being very accurate with those investments. And at the same time, they are included in our overall cap spend. So it's all in there and it change -- doesn't change as much. So.

Yes. And regarding the issues or potential challenges for KION, maybe you can provide some more details on that will be great.

Well, I think challenges for KION's success could be only -- well, if we go into SWOT analysis, I would say that given the start -- the possibility that our own originals would be really bad is off the table now. It looks that it all goes very well. And of course, the competitive environment is there. We have a player that is able to spend a lot of money on that. We have another player, which is able to redirect a lot of search traffic into their platform.

So we are playing on this market with our own opportunities and I believe currently the best team of making originals and at the same time with a very strong product team, and you can see that in the product itself. So I'm pretty confident that we are set for growth in this market.

And we go to the next question, it is from Henrik Herbst of Morgan Stanley.

Yes. I had a few questions, actually. Firstly, I wanted to follow up on the price increases beginning of the year. Can you -- I mean you've been doing price increases now, I guess, for a few years. Can you talk a little bit about what you've seen in terms of customer perception on price increases? Any change in churn or anything different from last year?

And then I also wanted to follow up on KION, I guess, and your content investment. Firstly, when we think about the content investment, I realize you can't give us any explicit numbers, but is 2021 sort of the beginning and the content investment is ramping up from here? Or are you sort of investing quite a lot now to get operations going? And from here, the content investment should be stable to sort of coming down a little bit, so more directionally, I guess, than perhaps explicit numbers.

And then, I guess, a bigger picture question on content investment. I think if you look globally, most telcos that have tried to invest in content have sort of changed their minds. I guess, the latest one is AT&T who sort of now exited the Time Warner investment. Can you maybe talk a little bit about why -- I guess what do you think you're doing differently? Or what's different with MTS and why we shouldn't sort of be worried about the I guess lack of success from other telcos trying the same thing?

Okay. First of all, thank you for your interesting questions. The first question is easy to answer. I think we came -- quite a few years ago, we came to a model which allows us to do those price increases very -- in a very transparent way. And we see that our subscribers appreciate this way. They always have time and suggestions of how they can change tariff, if they would. They don't want to stay on the tariff that is being increased. And therefore, in the last 2 or 3 years, we don't see any reflection on NPS after our price increases. So we are confident that we're doing that very accurately, and we monitor all changes afterwards. So I'm pretty confident we are okay here.

On KION content investment, I would say that in comparison with 2020 and 2021, the investment could go higher, maybe by a notch, but not much. And then if we see this going well, it will pretty much continue on the same level because we have model of how often, how many originals we have to get on the market to keep the interest of the new subscribers and the interest of existing subscribers. And it seems working so far.

And going into the last question on AT&T, Time Warner and this dilemma that everybody has. I would say that our situation is very different from the situation when telecom is purchasing an existing content provider because the idea behind content provider is to have the most -- the widest distribution possible. So limiting this distribution to one operator will really decrease its value. And this is the basic problem behind us. Our case is very different because we are not planning to conquer the world with that.

We are making very specific investment into enough local content to constantly increase number of subscribers on the platform. And then we are keeping them there both with the product excellency and existence of our libraries. And the libraries, of course, include libraries that we purchase from majors and libraries that are created with our own content. And I think that this difference is the most important and we see this model can really work out. So that's pretty much it.

Okay. Can you also -- can I perhaps follow up? In terms of the investment, is there any significant sort of OpEx investment as well? Is your content strategy a drag on your EBITDA margin? So is it mainly on CapEx?

No. Not really. It's being very, very moderate. Now the application is being done by our own teams. We have core of the platform from a big vendor, but then we -- again, we create all the systems around it by ourselves. And there will be some OpEx, but only when the subscriber base will grow. So it's all dynamic and only positive impact, I would say.

Thank you. At this moment, there are no further questions. (Operator Instructions) We have received another question. It is from Ondrej Cabejšek of UBS.

I have a couple of questions, if I may. One is a follow-up on Ivan's OIBDA question. So maybe I completely misunderstand the answer. But when you kind of look at the semiannual numbers, if I look at the one-offs from last year, then in the second quarter of '21, you had even more one-offs in the base than in 1Q '21. So when you say flat impact year-over-year on a semiannual basis, does that indicate that we're expecting some kind of negative one-offs in the second quarter of '21? Or is that understanding that's not correct, and maybe there's something else? So any clarification would be appreciated.

Second question, if I may. On MTS Bank, so very good numbers this quarter. Are you kind of confident that you can maybe keep your return on equity at maybe double digits this year before you get to your 20% target in 2023? And is that the target that you still think is achievable without any capital increase?

And maybe finally, in terms of Net Promoter Score, you mentioned the progress on there. But one of your competitors on the -- on their Capital Markets Day recently was saying that their Net Promoter Score is going up while the Net Promoter Score of the entire market, and that would mean you as well, is going down. So can you clarify, is that something that you are also seeing on the way that you perhaps measure Net Promoter Score differently? Or what the trajectory is currently for MTS?

Andre, thank you very much. Let me start with the first one. However, actually, there's not much I can add that I've already said that based on our assumption for the first half of the year, actually, the effect of 2021 to 2020 would be neutral on this specific other item. So that's actually it.

[Interpreted] Andre, thank you very much on your specific question on the bank. Yes, I'm really very happy to answer this. We do expect the return on equity for the bank will remain in the double-digit area by the end of this year, which could be taken as 15% or around like 12%.

As for the 2023 targets, we have recently reannounced them. So we remain on track.

As for the potential capital injections -- so additional capital injections, a lot will really depend on the regulators' initiatives as currently, we see the regulators -- some of the regulators' initiatives are made towards potential cooling down of the retail market. So for this year, we do not have any further specific plans to increase the bank's capital. And for the next year, we still do not have enough clear certainty or enough clarity on what the regulator will do.

I just wanted to add on that, that we really hope that the fintech is going to grow, and we see that it's growing really fast. And if we see that the growth continues and at a really healthy rate, we are ready to support it with some additional financing. Not -- again, nothing that would really make a drastic change in our figures, but given that ROI is growing, I think there is a possibility. So...

NPS...

So go ahead. Yes.

Yes. So I'll take that question on NPS. So actually, we don't comment information which was mentioned by a competitor, especially then we don't know on which materials or report it's referring to. That's why it's difficult to comment.

And on the overall, we see that NPS on the market is pretty modest mostly due to pandemic mood, which has happened for the last year, but this is the only trend we see. So that's why we don't comment on the comment of our competitor.

Maybe if I may, one follow-up because there were no other questions in the line. Can I just clarify, I believe there was a comment during the presentation about CapEx being temporarily higher. Is this a way to say that 2021 is a kind of one-off year? Or is this a multiyear thing you think? Any clarity would be appreciated.

Yes. Ondrej, thank you very much. That actually was part of my speech that -- what I wanted to mention is that it's not going to be a new run rate for the future. And yes, we expect that for the next years, that might be lower. It's too early actually to give any guidance or whatever, but that's our understanding at the moment.

So the 1-year spike would be your current working assumption?

This is what Andrey said, I'm sorry.

We've received another question. It comes from Anna Kupriyanova of Gazprombank.

I will have a couple of questions. Coming back to your OIBDA margin, if I correctly estimate that if we exclude effects from provision last year, we get to the OIBDA margin for Russia to be flat roughly year-on-year, if I correctly understood your comments. And what could we expect in terms of year-on-year margin trend going into the next 9 months of this year? This is my first question.

And now my second question will be regarding your music subscribers. I see that they're slightly down. Just to understand how this direction develops and what do you expect in the future, should we consider this as a promising part of your media division going forward?

And my final question, I think I missed the number of your multiproduct users. If you could repeat that, please?

Yes, Anna, thank you very much. I'll take the first question, this is Andrey. In terms of OIBDA margin, actually, we do not provide any guidance on the OIBDA margin. And frankly speaking, on our business, we are not so much focused on the margin itself. We are more focused on the numbers. And therefore, actually, you can refer to the guidance that we are giving for OIBDA plus 4% growth on the year that we stick to. So that's the answer to your first question.

Frankly speaking, on music subscribers, it's really -- I didn't see any major changes there. I can follow up on this later, but nothing drastic change there. And this is not a core to MTS Media. MTS Media is currently focused on online movie part. But on music subscribers, we have several directions working with music. One direction is partnership with Spotify that you know of, and it's probably not included in this number. We also have -- we still have partnership with Apple Music, and we have our own application, which is also a partnership application.

So I will -- again, I will check on that, but nothing major on this business happened in the last year. We did not disclose a multiproduct users number this quarter. So no, it's growing, but we didn't have this exact number.

And may please ask a bit more on your major revenues? In terms of share of TV revenues and fixed line revenues, I mean which share in fixed line revenue growth came from TV? How does it compare to the overall segment increase, not in terms of users, but in...

I understand the question, but we cannot answer it now. And going forward, it will be more and more difficult to diversify revenues coming from different business lines because everything is coming in bundles. And the way you attach revenue for this bundle to different business is very artificial.

So it's really impossible to say which part goes -- which comes from fixed line, which part comes from TV. Sorry, but everybody would want that because -- to realize your cost efficiency, but unfortunately, it doesn't work this way.

And then final question. When can we expect a new disclosure in terms of your results by new business segments?

Well, could you please specify? What do you mean by results of this new business segment?

The disclosure of your business segments in terms of results presentation by new direction as media, fintech, digital?

We're a little bit puzzled here at this table because we are giving the results of our business lines. So that's why I asked you to specify the question.

What I mean, for example, your media revenues, your digital revenues. Given it's your major 4 new directions, I would be interested to understand when we can see the revenues by these directions. At this stage, you don't disclose your media revenues. Sorry, if I missed something.

We will process your request and come out with some solution. But I think that again, given that most of the services are given in bundles, this was all pretty much artificial. But we will try to help you. So we'll consider it. Thank you.

This is Polina. As we have given this message for quite already a long time to the market, the whole paradigm and idea behind the ecosystem is that you're building a specific ecosystem surrounding a route specific around each client, let's say. And you are selling the services in the bundle. While some of the services can be absolutely profitable, other services, which do increase the life of our clients or increase the NPS, which NPS, which is associated with this client, can be OIBDA 0, for example, even into negative.

What is really very important for us is that, that type of bundling provides the longer life of our clients and in the end, results in the higher CLV, which is customer lifetime value. From that perspective, going forward in implementation, our strategy, it would make less and less sense to give you a breakdown between the division especially at the level of the profits which are generated by this or that division.

But anyway, as you might see, we keep increasing the transparency and the fulfillment of our disclosure to better understand you how our business evolves and to make you understanding of how the whole ecosystem paradigm develops here as a kind of more friendly and more transparent in terms of understanding.

The next question is from Slava Degtyarev of Goldman Sachs.

One general question from me. There is quite a large spike in inflation across the globe, and it looks like Russia is not an exclusion here. Do you see any inflationary effect putting pressure on either CapEx or the OpEx side in the medium term that we should be aware of and which lines can be most affected?

Since you're mentioning that this is a global effect, of course, it has influence on every company and probably every person. But I would say that with the specific terms of CapEx and everything, we have long-term relationships with our vendors and I don't think that we have something specific to our company with this regard. No. Just as everyone else.

And the next question is from Ondrej Cabejšek of UBS.

I have a follow-up. Following your last quarter results, there were press reports that you may be spinning off your towers into a separate company. And we have one of your competitors, especially being very vocal about trying to do something, especially in maybe the more remote regions of Russia and when it comes to network sharing, et cetera. Is this something that you're kind of ready to comment on and what potential paths would you be most interested in when it comes to some kind of infrastructure sharing or deals, et cetera?

Yes. Very, very easy answer. We are looking into all opportunities and very closely about what's happening in the market. Nothing happened yet. We realize there are a lot of negotiations in this area. And of course, we are on top, but we're not ready to disclose anything yet.

But can you maybe say in the past, MTS has been very much opposed to this? Is the situation a bit different now from your perspective? Now maybe that the market is kind of on more level-playing field when it comes to coverage, network quality, et cetera, is it something you would consider as compared to 5 years ago?

I can only repeat what I've already said. Of course, life is going on. And we are -- yes, life is going on. We are looking at opportunities. And whenever we are ready to disclose any news for you, we will do that, believe me.

As there are no further questions, I would like to hand back to you.

Ladies and gentlemen, thank you very much for listening.

As usual, we will make a replay of this call available on our IR website in the near future. If you have any further questions, please do not hesitate to reach out to MTS Investor Relations at any time. Our inboxes and phone lines are open. In the meantime, we appreciate your interest in MTS and we wish everyone a pleasant day.

Ladies and gentlemen, thank you for your attendance. This call has been concluded. You may disconnect.