Let us recall that in previous reporting periods,

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Investors traditionally closely follow the publications of MTS (MTSS, the key asset of AFK Sistema), since this stock is considered a "quasi-bond" due to one of the highest dividend yields on the market, above 14%.

However, 2022 presented MTS in a new guise: thanks to the rapid and multifaceted development of its own ecosystem, covering many everyday areas of customers' lives, making the MTS application on their smartphones something like "seven troubles - one answer", MTS appears before us as a growth story, which makes this promotion interesting for those who are waiting for good ideas for the exchange rate increase of their investments. This year, this course has strengthened and proven its worth.

So, MTS presented its financial honduras whatsapp resource report for the 2nd quarter and the first half of 2023. The Group's revenue for the second quarter of 2023 increased by 14.8% year-on-year and amounted to 146.7 billion rubles. According to the results of the reporting period, the Group's OIBDA increased by almost 23% compared to the same period last year to 63.7 billion rubles. And now the main surprise: net profit jumped by 53.5% year-on-year to 16.8 billion rubles, and net debt decreased by 0.7%.

MTS OIBDA showed some barely noticeable decrease, which, in my opinion, looked transient and was associated precisely with the costs of forming an ecosystem approach to MTS business development. In fact, this is what happened. As MTS President Vyacheslav Nikolaev noted, almost half of MTS's B2C revenue in the second quarter of this year was provided by ecosystem clients. The company expects their number to grow faster due to the launch of new products in the second half of 2023, as well as the expansion of the MTS Premium subscription and its integration with the MTS Cashback loyalty service."

In addition to the dynamic development of the B2C segment, the reporting period also saw unexpectedly strong growth in the B2B segment, which, in my opinion, will allow the company to increase not only profitability, but also revenue growth rates, which will ultimately improve its investment multipliers.

At the same time, it is important that in the process of developing new development areas, MTS consistently maintains the loyalty of its 80 million subscribers, while increasing the volume of billable traffic: according to the results of the reporting period, it grew by 15%, which significantly exceeds similar indicators of competitors. Within its framework, the growth of the main digital areas continues - KION, MTS Entertainment, MTS Music, "MTS Stroki". According to the press release, "The issue of further network optimization will be decided based on the situation, since the retail market remains volatile."

MTS plans to maintain the pace of capital investments, which provides a good prospect for maintaining leadership due to the dynamic expansion of the ecosystem with an emphasis on its highly profitable branches. Thus, the reduction in capital expenditures mentioned in the first half of 2022 was indeed transient and was associated, according to the company's management, with the mass purchase of equipment. As a result, MTS became the leader among mobile operators in the communications services market by the number of clients, increasing its market share to 34%.

Also interesting as an additional driver of profitability is the active growth of revenues in the AdTech segment, which amounted to more than 46% year-on-year, rising to 8.5 billion rubles.

Let us recall that in June, at the annual general meeting of shareholders, MTS shareholders approved annual dividends in the amount of 34.29 rubles per ordinary share, ensuring a dividend yield at current quotes of more than 15% and securing the issuer's status as one of the most well-known dividend chips on the domestic market.

Bottom line: MTS in its latest report once again pleased not only with a significant increase in the number of users of the MTS Premium ecosystem subscription and the MTS Cashback loyalty service, but also with a significant acceleration of the B2B segment, which gives a new impetus to revise the investment assessment upwards.

Based on the presented results, MTS shares remain investment attractive for both income-oriented investors and growth investors. The company remains undervalued in many respects. In particular, the P/S ratio fell below 1 following the updated data, which for an issuer of this quality can be considered a signal for price growth in the foreseeable future.