Russia’s biggest mobile operator MTS reported a 36.4% drop in second-quarter net profit from the same period last year; as higher financing costs and provisions at its banking business outweighed slightly higher revenues.
The company also pointed to higher levels of depreciation and amortisation; reflecting recent capital expenditure (CAPEX).
Net profit came in at 10.9 billion roubles ($185.5 million) on revenues of 127.8 billion roubles.
Group CAPEX fell 14.6% year-on-year to 22 billion roubles, “largely due to the restrictions imposed on purchases of network equipment in 2022.”
Russian businesses are adapting to challenges caused by sanctions against Moscow over the conflict in Ukraine and the subsequent impact on supply chains.