Business
Mobile TeleSystems : MTS Continues Corporate Transformation
Mobile TeleSystems : MTS Continues Corporate
About this update from Mts
MOSCOW, Russia - Mobile TeleSystems Public Joint Stock Company ("MTS" or "the Company") (MOEX: MTSS), a digital ecosystem, announces its transformation into a holding company, with its businesses being spun off into separate legal entities. MTS's non-telecom businesses now account for almost half (45%) of the Group's revenue. The establishment of separate legal entities will enhance transparency of the Company's operations, enable faster decision-making in individual businesses and drive a sharper investment focus in a high-key-rate environment. While MTS will focus on the telecom business, non-telecom businesses will be structured as separate companies under the management of a new legal entity, MTS Ecosystem, which will be a 100% subsidiary of MTS, although it will have a great deal of operational independence. In order to reflect the ongoing changes, Inessa Galaktionova, former First Vice President for the telecom business, has been appointed as the CEO to lead MTS. Rovshan Aliyev, who has extensive experience in establishing effective corporate governance systems and taking assets public, will be appointed as the CEO of MTS Ecosystem. To harmonize the operations of all Group businesses and manage the transformation process, the Board of Directors will be granted new powers and will take on a more active role in the Company's operations. In this regard, the President of MTS, Vyacheslav Nikolaev, will take over as Chairman of the Board of Directors, and the position of MTS President will be abolished. A transformation committee was formed under the Board of Directors that consists of members of the Board of Directors along with the heads of Group businesses. "MTS's key objective in the context of tight monetary policy will be to reduce its debt position over the coming year. In 2025, we plan to stay away from cost-intensive M&A deals. In order to unlock shareholder value, we will continue with the ecosystem transformation that began with the IPO of our banking business and the establishment of a media holding company. We can see the effectiveness of this approach and intend to structure other business verticals in a similar way, creating separate legal entities that will interact with each other on market terms and will be able to raise external capital. In particular, we plan to combine all the Group's IT businesses (MTS Digital, MTS AI, MTS Big Da...