Q4 2020 Mobil'nye Telesistemy PAO Earnings Call
[music].
Dear, ladies and gentlemen, and welcome to the conference call on mobile and it systems and our customers' request this conference about the record it.
As a reminder, all participants will be in a listen only mode.
After the presentation, there would be and opportunity to ask questions.
If any participant has difficulty hearing on the conference. Please press star followed by the zero on your telephone for operator assistance.
May I now hand, you over to Paulino grew more director of Investor Relations, who really just from this conference sheets go ahead.
Welcome everybody.
And are discussing first quarter and a true here trying to trains you financial and <unk>.
And before the start on my second mind, you that except for historical information and your comments made during the school and they cause he says Protiviti Lucas.
Important factors could cause our actual results could differ materially from those contained in our projections or forward looking statements.
Central and imply certain risks and more total discussion.
And in our annual reports and form 20-F or the materials distributed today.
MTS Disavows senior obligation to update any previously made sort of a click and statements spoken on this conference call or make any adjustments to previously made statements to reflect changes in risks I also want to mention that's going to sales and the reason in Q4 'twenty two and you will have retrospectively restate that the group profit and the low statements will compare.
On a like for like basis.
And as always you can find our press release and presentation from her school and all the IR website.
On today's presenters on.
And you can see Gordon President and Chief Executive Officer, Slava, Nikolaj Appeals to vice President and for customer experience marketing and ecosystem development.
And that's the Galaxy, one and what's supposed to vice President for Telecommunications, Andrey Kamensky, Vice President and from my notes and India and lots of Vice Presidents for financial services and C of MTS Bank, who will speak in Russia, and I won't go on fleet.
So with that let me turn it over to Alex Chi and to get Us started.
Thank you, Paul and and welcome to everyone joining us.
And the global level.
2020 was a year of unprecedented challenges.
Before we begin and I'd like to thank the entire MTS steam from the fourth deviation and professionalism over the past year on.
<unk> continues to play vs, a little and keeping our customers and communities engaged informed and and touch.
It gives the droplet and she has performed admirably in wait and see we proved the agility of our team did a liability will fall and network and that is something that if youre a long term growth strategy.
Overall I'm happy to report that Tim and she is close to fourth quarter and the position of strength, we fall through on our full year guidance started gets to our group revenue and adjusted EBITDA.
Capex was also in line with guidance when including the effect from the day rates in Australia.
Let me walk you through the headline results for the year group revenue was up five 2% year over year to reach nearly 500 million rubles once.
And what telecom services were the key driver, but we saw and additional and substantial voices from Buck from you. It is beyond connectivity.
Rollout three non core verticals contributed nearly a third of group top line growth.
The quarter on the revenue growth accelerated from third quarter to seven 4% year over year in part, reflecting easier roaming comparable due to travel system and let's see.
Group adjusted to be deemed winter, which increased from one.
One 7%.
Year over year to around 215 billion rubles.
Growth was driven by core telecom services as well as the positive impact in retail, which reflected was our long term optimization measures as well as the temporary cost savings related to COVID-19 at the same time adjusted EBITDA growth constrained by multiple factors prime.
And we really did decline of relatively high margin and the roaming revenue as well as the other one offs and provisions at MTS and MTS Bank.
And what our group adjusted EBITDA grew one 3% year over year to $52 5 billion rubles.
And to the earnings waterfall full year group net profit increased two <unk> year over year, 13% to 61 billion on the back of service growth and improved cost of debt and the impact from realized derivative contracts used to mitigate forex exposure.
At the same time net profit growth was constrained by high base from sales of associates in 2019.
And E ticketing assets change in discontinued operations and the negative impact from MTS Bank and the group level.
For the quarter gross net profit amounted to $13 1 billion rubles.
<unk> and we moved forward at the pace of our digital transformation Expunging Inthe, Jason segments scaling, our digital ecosystem and modernizing our brands for the future.
And silicon with solid top line growth and worthwhile and violent and Sigma strategically, we continue to invest and capacity and coverage drive fixed mobile convergence and position ourselves at the leading edge of five G and it seem to you from knowledge.
And the retail we optimized our footprint by over 400 stores and more than doubled ecommerce sales and cloud and digital solutions, we expanded our customer base and so double digit revenue growth.
And future net interest income at MTS bank grew by nearly filled despite the marketable agility and challenges amid the pandemic and media. We added one 5 million new OTT users more than the total was set at the beginning of the year and the cross our ecosystem with quotes.
On the extra digital T and wins in 2020 driving.
Looking at 'twenty 'twenty, one will be the last year or for our current dividend policy.
As you know our policy is based around an absolute share minimum payout well. This provides predictable base line. We appreciate that it can also limit market expectations on the dividend upside on the back of strong operational performance.
We understand the decision will take into consideration when formulating our new dividend policy that will take effect in 'twenty 'twenty. One. Moreover, falling on buybacks there are fewer empty as shares outstanding which provides additional flexibility in increasing the payout per share in this.
Text and given our strong results cash position in 'twenty 'twenty, one outlook MTS management blends to recommend an increase you know per share the dividend payout in 'twenty 'twenty, one above the level in 'twenty to 'twenty two.
Two years ago, we embarked on a journey to become more than it's illegal. We are now well underway. We have mapped out their old affordable we have put a strong team in place and we have gained momentum towards becoming Russia's Crimea network native ecosystem of digital products and services.
So with that let me hand, it back to Polina for Q&A.
Okay.
Thank you Keith and thank you for the rest of the speakers yeah is it take questions. So please be aware that there may be a slight delay for cancellation.
With that let's open the line for questions.
Yeah.
Thank you, ladies and gentlemen, we will now begin our question and answer session.
If you have a question for us because just a general one on your telephone keypad now turning to the Q1.
One day name has been announced you can ask a question.
A question scientist professor tend to speak you can dial zone. So to answer your question.
If you are using speaker equipment today, she's less than that before making your selection.
One moment please for the first question.
The first question. We received is from Ivan Kim of ex tireless capital. Your line is now I'll just go ahead.
Hi, Good evening two questions from my side. Please first on Capex.
I was wondering the capex guidance is fairly wide.
So what would prompt you to spend.
Hundreds down let's say over 100, so what's.
Either is it kind of higher spending.
This will be driven by.
And then also longer term.
Is it safe to assume that Capex will be now above 100 billion Mark.
For the next few years that's.
That's my first question and then the second question on.
Just the trends that you're seeing in January or February on mobile service revenue growth than the exit growth was pretty good.
Strong didn't decelerate in the domestic business. So are you seeing the same kind of 6%.
Growth in January February thank you.
Okay.
Ivan Thank you for the question.
Capex range will be defined the pace at which we'll embark our digital investment project.
Forex a forex day.
Dynamics.
And debt is basically where we see where the weather there will be new initiatives from investments in new projects and the ideas, which will take in next year. So that they will affect the overall capex. This year actually so three factors.
And now with the mobile service that hitting your ill pass it over to Dennis.
So I'm on my answer will be pretty short. So we do expect net positive growth dynamics in Q1.
This year.
As you know it will be some slight price.
This increase which price yeah.
Which was actually in.
Okay.
Per previous cost legal Lisa yes, so we do expect the positive trend in Q1 in mobile revenue growth.
But not on the land.
For Q4.
Okay. Thank you for this and that makes it can I just follow up on the longer term Capex and do you think the longer term capex will stay above 100 billion, Oh, yes, I'm, saying for even longer.
Yeah.
Not necessarily I think it will depend on a number of factors including.
Need for five G investments and for knowing that mix.
Okay. Thank you.
Okay.
The next question received is from Slava <unk> from Goldman Sachs. Your line is open. Please go ahead.
Yes. Thank you very much for the presentation couple of questions. Firstly can you comment on the scope of the <unk> Capex investments in 2021 and also the use cases.
Youre deploying that Capex for now.
And also what's the economics there do you recover those investments are in a short period of time.
And my second one would be if you can provide a few details for on the benefits of the partnership with Yandex on the premium subscribers since whether there are any early results Neil Thank you.
On the Capex, there will be no material <unk> capex.
21, since there is still a remains uncertain so you're all frequencies as well as the local equipment a requirement for fiber network rollout, nor my CTO, all five geographic since moving to point to them and the <unk>.
For the second line crossing too slow.
It's very simple.
MTS.
Customers of <unk>.
MTF premium.
Could get.
Unexplored.
At a cheaper price on Covid, yet also a free free month free of charge and it works for <unk>. So we are reached.
Mutually expanding the number of customers who use our <unk>.
Services of two ecosystems at a discount and we believe of course, we are selecting the.
Partners in this initiative and we think this is definitely for the benefit of MTS customers.
Current results or is it too early to speak about current results we.
We see a good response to that.
When we were <unk>.
Delivering the message to subscriber base, but.
It's still at the very early stage of this curve debt.
I think well.
We'll show significant results for its not going to be 1% 2% of.
Day as premium it's up I expect it to be closer to from 10% to 20%.
Okay.
Thank you very much.
The next question we received is from <unk> <unk>.
<unk> capital. Your line is now open go ahead.
Yeah.
Mr. <unk>. Your line is now open.
On mute maybe.
Yeah.
So we go onto the next question.
Anna <unk>.
From <unk> Bank. Your line is now open. Please go ahead.
Good evening. Thank you very much for taking my question.
First question, Ladies also follow up on the Capex guidance.
I wonder.
For tomorrow.
Within this guidance.
It presumes may be rollover of projects, which were not.
<unk> completed last year.
The second question for you.
Give us some updates on your media media vertical.
So because you established.
Thank you tier one year ago more or less.
So it's interesting in terms of the progress there in terms of your plans for that.
<unk> gone from development and also if you could provide some update on what's going on the lead the MTS arena.
Wang Li will be go operational thank you.
Well the Capex guidance.
Historically easier.
It is a high portion or for a low projects because this is infrastructure time consuming investments.
Usually about 30% of our capex through higher comps is a low.
Over.
But of course the.
Decisions on.
No.
<unk> to 'twenty, one capex are you really thinking.
Late.
Duane Duane to early 'twenty 'twenty, one so you kept for a fool.
Keep ability to define the level of Capex.
Itchy.
And then for some media vertical update.
First of all we see up upon.
From the figures that I.
I told you earlier, which are up I think impressive by themself.
We can also we can also say that.
We see a major improvement in the product itself we have.
Application that has from a much higher marks in all stores given by our customers. This is a great thing second we have a better retention of customers.
Because we have a better libraries.
In the in the application.
And most importantly, I think.
Is that a later this year or pretty soon.
For the day for us and you're going to see a major.
And the relaunch of MTS.
M T S T V with original content and a lot of new features so.
But as I say stay tuned it's going to be interesting and it's going to be soon.
On the MTS arena.
We expect at launch.
In the middle of this year.
It will be technically ready and before that but the the main point is.
And ability to create the appropriate lineup for offline.
<unk>, which is not an easy task because international travel is still restricted in there is still I know some concerns about how it's gone.
Match the.
With flow of.
Pandemic. So it's still unclear. The exact date is still unclear it's definitely this year.
I would my suggestions that it's going to be closer to two awesome, but but.
It has still has to be determined.
Yes.
Thank you very much for that.
A quick follow up on Capex for you.
Well other vessel operators.
It's too.
Let's say to say.
Say something.
In terms of Europe I relate to project last year. So the government has allowed us to.
But for some oh, okay. Thank you for expansion, yes. Two later, yes, I mean, the Covid pandemic.
So could you.
Detail on what's going on there. So if you let's say on the Sam Sam saw something Lafayette from here what does it mean debt. This year you will have you.
We'll need to invest for what was initially projected for the year 'twenty, one and plus what was understood for last year.
It's more b.
It'll be a some kind of softer.
<unk> sales.
Thank you.
Yes. Thank you.
Uh huh.
Limitations or ease as well now.
This plan does not relate to the first phase of Uruguay infrastructure buildup. So effectively we'll have to built a what was initially planned. So there are the easy in this future capex after the initial infrastructure.
I have it by by those adjustments you just mentioned.
However, the initial infrastructure needs to be built at the initial kind of for.
Initial design and initial cut price it too.
That's.
The commitment, which we identified or for.
50 billion over the five year period.
It is still intact.
Thank you very much.
And the next question is from money market margin. So pavan <unk> from <unk>. Your line is now open channel perhaps.
Yes, good afternoon.
I have three questions. So first one you've mentioned price increase for yeah, Kristen customers, what do you listen correctly, what's the average.
A nice percentage.
Second Joseph mentioned that you see low which one.
Convention. Okay is there any number that you could share with us.
Just for a better understanding.
Apparently.
There was an article in cornerstone index.
You have this experiment.
For free access to sites and there was an article saying that it might be expanded into <unk> or is this true.
Scott talks and discussions.
Happening with caris.
How significant do you think.
That's it.
Yeah. So I will answer the first a question on net debt adjustments actually it's very limited one for sure.
Well, we don't it's not even more.
Material in them.
The level of increase.
On the second question I can answer that.
Different conversion tell for us and when we're talking about mobile plus six.
It is usually.
The churn rate is less by one 507 times so its already significant when it would have more products and one conversion flow for line yet.
If the client get three in more.
Services than it is slower to up to three times.
And only accessible Internet project discussions.
Now in place. So it is too early to say what will be the final installation or for this initiative for from the government.
Thank you.
Before we take the next question just a reminder, if you would like to ask a question. Please press <unk> one on the telephone keypad.
And the next one is a follow up off even Kim your line.
Yes, Hi, Dan.
Two quick questions.
On the buyback so do you foresee.
Conduction buyback this year.
And then secondly on them Jeff.
Capital injection that you mentioned before.
So what sort of range shall we expect there thoughts I have been on mobile soar.
If you can give us any.
Guidance for that thank you.
Yes. Thank you I'll take both questions on the buyback program.
Actually beat from the very good results of 2020, I think that.
We are going to use two very soon announce another buyback program, it's not defined yet that would most probably it will come.
In terms of MTS bank capital injection actually it will depend on the dynamic of the bank. So far we see that it's growing quite rapidly based on the first months of this year. So of course, it will depends on debt, but it would be.
So far the estimation is a bit less than $5 billion.
Great. Thank you Raj for this.
The next question is from Andrew accounts of Morgan Stanley.
Go ahead.
Yes.
Thank you so in Russia key questions, Jason I mean, the first one just if you can help us a little bit for the cash flow for.
For expectations for 2020 one.
I mean can you help us with EBITDA and on top of that I spoke to that at all.
Is there anything in particular, we should be.
And maybe you can help us at least with how we should think about working capital.
Going into 2021, and then secondly.
When do you think about the investments in content. How do you think about that business just trying to think about it as a standalone business.
Content investment and.
For the TV business generating some standalone.
So is it part of that.
So returns essentially coming from low churn.
Sean et cetera in the mobile business or how do we think about the investments in the non.
Thanks very much.
Yes.
So.
Henri Thank you very much in terms of the cash flow for 2021, I think you have other components actually we gave a guidance from the EBITDA and Capex.
In terms of the working capital usually the it's not the debt material on the on the cash flow, although we constantly working from one year to another to optimize it. So I think it would be more or less comparable with this year.
As far as the content MBS loans concerns we are not looking at our children in particular Camden for production of course, we are falling and doing all the analytics. So for what is a what is it.
Activity on.
Yeah with this specific campaign being at our own production or partners or acquired and so on so forth. However of course, we are considering it in the more complex.
We are chasing effectiveness, but as far as the return on investments we are looking at these.
Convergent offers the bundling of these products into our.
Packages and the effectiveness of overall our means yeah.
Media business, which includes also a satellite TV IP TV cable TV. So it is not only online media platform. It's all the complexity with our content will be delivered and we kept for wip scheme, which allows us to do those kind of investments.
Because right now, we're having more than 5 million of.
Customers.
In our media business that includes all all means or for delivering content, which as Jeff mentioned mobile.
For OTT.
The light the I P T V M cable.
Alright. Thank you. Thank you very much.
And the next one is from Mikes and Ken. Your line is now just go ahead.
So most of the thing is we still cannot hear you.
Yeah.
So let me take the next one it's from net kind of meat.
HSBC Your line open. Please go ahead.
Hi, Thank you for the presentation just one question.
Integration day Windows.
The strong in Q4 can you give a little bit of a loved one.
Keith I was then.
So somehow look for free with housing.
So.
We apologize could you repeat the question we didn't get it forward.
Yes.
So I think they shouldn't be ready meals.
Quite belonging Q4.
So can you give us a bit of color on what the key drivers and also any outlook for 2021.
You mean, leaving you with what were the drivers of revenue growth and what isn't.
Sure.
Integration day venues.
Integration revenue okay.
Yeah.
Well, if you're speaking not fully getting which line you referring because this year this quarter.
Deconsolidation of envision.
We are showing the figures for what is it without integration services. The revenue. So what do you mind three for is the cloud.
Business, where we've had.
Some growth in positive for strong dynamics.
Also for quite a good dynamics on sale of equipment.
Uh huh.
We will check I suggest to take it offline, we will check what particular M. You you kind of like with L Y seem to specify what exactly a line of our email <unk>. So that we can specify.
Okay.
Sure. Thank you.
Okay. So Neal I think we can get there.
We've kept for check in Czech Republic the business.
The plant with some equipment.
Production.
Because of Forex dynamics in.
Quite a good growth even in a chip kronos.
We've had the positive strong force at different bucket from this yeah from our chip business.
But it wasn't that material.
Alright, alright, thank you.
And the next question is from Alex <unk>. Your line is now please go ahead.
Yes. Good afternoon, two questions from my side. So first one on you.
For mobile retail so we've seen that work for.
There was some slight increase in the number of the stores.
Which kind of contradicts the previous trends, we've seen for the whole year. So I'm just wondering how should you look about your store count this year, whether you continue to plan on.
A day reduction in the number of the stores and how the your competitors reacting in that.
Back on market trend, which continues.
This year.
And second question is.
One you're from.
The M&A strategy might be garbage business. So recently.
There was an article in.
In the press net.
<unk> been looking at potential acquisition.
Yes, you're focusing on.
And different types of day to be province.
Deborah.
Just wondering whether these type of services.
Our focus will you for you our b to B segment.
Do you continue to plan to indeed shield product offering.
For me to be clients.
And whether you have any.
Aggressive plans, maybe werent in the development of your cloud business. Because obviously you are a number two player on the cloud market. You also have quite strong presence.
In times of day data.
Data storage capacities.
So can you also please provide some more color on what are your plans.
And for that development.
This segment this year and going forward. Thank you.
Okay.
Okay I will take the first question regarding retail so first of all.
We are we have the stabilization from the non profit on storage. So we optimize in 2026 hundreds of stores and in Q4 were 90 increased or decreased.
Stuart.
In 2020, and actually we are not.
Already taken into our consideration and your father.
Optimization footprint optimization, because we don't see it.
The number of total already is that a.
A big factor for Amy.
Distribution.
Uh huh.
So any kind of became for <unk> for the sales distribution, yes. So.
In the in the current fleet as well, we don't see any competitive dynamics that happened in India.
Print optimization.
Well, we don't plan to do any steps in the index Adrian.
And instead of volume in the strength that you can soon yes, we do look at nonorganic opportunities or expanding our business as you know existing 50 golf as well as beyond those vehicles.
And speaking about our existing businesses, yes, where we see interesting technological opportunities, we are considering them, which they need to be complementary they.
They need to be positive business case or.
For internal development, the VSO small not a guidance or no no not organic growth.
Growth and also debt we need to have we are poised to be reported.
For two for perspectives for the market the growth in particular segments.
If we talk about the <unk> segment, which is slightly different for big yes.
We believe that we could have a very good and strong potential and b to b segments, especially with the development of <unk>.
Actually I think will be even more important because it is the internet of things and those things will be very much a de levered to customer and no will be brought to the market through our corporate segment. So <unk> is becoming a more for our focus.
Important and in this call index, we think of developing our b to b ecosystem for their three is the reason we build a separate digital.
Digital will be to be in the cloud vertical and that's helped US already as you rightly mentioned to become number two cloud E. L F.
Provider in Russia old or two or three years ago, we were mobile.
Not visible in this market and the cloud is one of the most promising segments.
Including buttons through potentially H block, which we are in a in and cloud businesses will be investing and this is one of the most interesting.
Idiots for incorporate.
Segments, which are which we see and we will accept from negative for our investments.
Thank you.
Yeah.
The next question is from Ana.
Good luck.
Your line is now open. Please go ahead.
Thank you very much for taking.
Thank you my follow ups.
Basically the first one is just a clarification you mentioned in the introductory speech for that.
Q4, EBITDA was a.
Impacted by provisioning, so easily possible to share with us or force to me, it's a rough number for the amount of provision and the second question also too.
Hum like double check.
Oh timeline with the new dividend policy, So we would be no.
Would it be correct to assume that the board of directors will make a decision Lady M. E. Pill, yes. It May April may and the other thing you dividend policy will be applied from 'twenty two into 'twenty, one so the interim dividend.
Which for you normally see.
So in October November already we will be glad to do that does that amount in line with the new policy I am I correct.
The question. Thank you.
Thank you very much I will take the first question in terms of.
We'll leave the dynamic in the fourth quarter as our as we mentioned actually.
Besides the positive factors that we saw in the fourth quarter. It was constrained by the number of factors from provisions.
The bank caused by the pandemic and pandemic and also some provisions that we made.
And we booked that in.
Judgments were prudent to make and the biggest part of them are relief to operational provision concerning specific business activities.
So there's not something specific in debt, that's a kind of a.
Regular business that the core business that we're actually making.
And speaking about the dividend policy.
I mentioned in my speech.
Yeah.
I will note that he buys this year.
It Didnt policy.
So the timing when you dividend policy will be the next year spring next year.
And we will take into consideration that the current dividend policy is limiting and understanding of upside.
Or following the good and strong results, which we are.
But traditionally delivering.
And taking this into consideration this year, we will let economy and a higher <unk>.
Then our than our fixed figure of dividend you know dividend policy, we will let you come in through the board of the high figure so demonstrating that the reason upside if there are strong results and good for you know a good guidance.
Thank you.
And the next is a follow up I'll tender Katz. Your line is now please go ahead.
Well, thanks, very much every nice strength.
So just a quick follow up.
I think last call you are expressing some concern around mobile competition.
I guess I just wanted to check whether anything changed I mean arguably your.
Decision to raise pricing would suggest you're not too concerned about competition, but I just wanted to double check. Thank you.
You know, we see that our pricing environment in Russia is pretty healthy now.
Yes, I agree we've seen some movements.
From a different operators.
Yeah.
The fourth quarter, but it seems that.
Especially given that our new propositions for most of the convergent they are as I said that.
Some of them are really couldn't be compared to those of our competitors. We saw no real impact on our figures, but by those movements and and the fourth in the first quarter.
We don't see any continuation of that so.
We strongly believe that pricing environment is going to be healthy in 2021.
Great. Thank you very much.
Yeah.
And again as a reminder, if you would like.
So I'll ask a question please press star zero.
One on the telephone keypad.
And the next question is a follow up off line.
In Ghana, which your line is now open again. Please go ahead.
Thank you for taking the follow up just one question on MTS Bank. So if you look at the number of the customers on Julian from Fanny Agostini, There was no big increase in that number.
We haven't seen any visible impact and are improving.
Number one ecosystem customers on MTS bank. So can you please.
Share with us your plans warm maybe whether this number kind of line stable number of the customers is a concern for you and you want to accelerate customer acquisitions. This year. So you mentioned plans for launch and youth impact rather than.
And also provides an indication that the bank might cause it why do you smoke optimization.
These things connected with each other from the main idea is actually to drive the number of being new customers for the bank. Thank you.
Yeah.
Okay.
Yeah.
Okay.
Okay.
Especially but for the price.
Okay.
Can you just talk to you in the Korean come down a few days.
Got you no other video moniker.
Thank you for your question.
Obviously as the number of active clients.
MTS Bank please.
Most critical method for the bank development.
Well that's good for them.
Thank you my muscle stem from mobile.
Really true Nisha bundle you buy it from <unk>.
Net clients go above them just traditionally because its thing.
Not greenfield for the only plant.
Looking back on.
For 2024 months and then thank you for it environments.
Uh huh.
I can confirm that day.
<unk> sales growth was below what we expected in the beginning of last year. That's why are the current dynamics of the ex U.
If a customer for MTS bank looks more or less looking for.
Net.
Got it I'm Gonna go ideally producers mainly on the floor.
Good O'shea from Laguardia correctly and per month, it leaves us to you.
When we address our achievement.
To get to 10 million.
<unk> clients.
Back in November 2019 at our strategy day.
Blue for them.
Referencing from the overall number of clients switch sales.
As well as Fintech Glenn.
And with almost all Mccann you sort of look theater room all day.
College totally uncle from out of nine months equally total anemia bankruptcy simple from a part of it so thank.
For this particularly video all Democrats enough for that they gave the okay. That's it for Liberty in Wuxi.
Any stimulus.
Okay.
Hmm.
Looking at our expectation by the end of 'twenty or 'twenty one.
Is that.
We are targeting to achieve.
Close to 10 million Clive if accounts together.
Ex U M. T has been clients as well as fintech clients, which are non <unk> clients using financial services income kimco.
He took them wingo items better competitive that's a tissue growth.
For.
Plus we can nominally up could you.
Good day.
During Q.
Tissue that from store per diem capital.
But can get Iranian tempo for sure.
Sure.
Shifting the bush items.
Yes for the first mobile it cannot be able to ship most of iniquitous, but.
For our Union Western Caribbean, obviously put out simple.
Okay.
A couple of hours ago any loans, there's a bunch of political.
Nothing that's it.
Good day, Thank you use a theme for us.
This is not what it was.
Capital deployment and.
And when we talk about the potential capital injections into MTS Bank.
We first of all I thinking about.
This injection as a support to maintain MTS bank growth above the market average growth rather than thinking about a deemed compliant with regulations for regulation, which is not a problem. So the main goal for the capital injection system simply to maintain the Ah <unk>.
Both rate above market average as an example last year the overall industry and the retail loans segment grew.
Eight to 10, 8% to 12%.
This is significantly below 30%, which was performed by MTS Bank.
Yeah.
Okay.
That answer your question, Yes, I think yes, so yeah more or less models again, I think the key issues that it's probably difficult to define a standard nieland with clients.
In terms of the usage of the service obviously, the client, which has a bank account and the client.
Which just use whatever one money transfer service during the months obviously the value of this clients might be dramatically different for the overall ecosystem right.
So this is just my concern on this yeah. So.
So I can't add more to that so we'll be looking at for your dynamics non business segment. Thank you.
Thank you Sasha we have taken.
So what's your Consumptions will definitely get back to your off line.
From my side.
Okay.
Yeah.
As we received no further questions I hand back to the speakers for closing remarks.
Ladies and gentlemen, thank you very much Melissa as usual, we will make a replay of this call available on our IR web page in the near future. It does have any further questions. Please give us dissipate for the shell Sanchez Investor Relations, if anything our inbox system for life.
In the meantime, we appreciate your interest in MTS and wish everyone a pleasant day.
Ladies and gentlemen, thank you for your attendance. This call has been concluded you may disconnect.
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