MTS announced the transformation of its corporate structure
MTS announced the transformation of its corporate structure with the separation of business verticals into separate legal entities. This will ensure transparency of activities, fast decision-making in certain areas and clear focus of investments in the conditions of the increased key rate, the company's press service explained. Telecom business will be concentrated in MTS PJSC, non-telecom businesses - in the new legal entity "MTS Ecosystem".
MTS' non-telecom businesses now account for almost half (45%) of the group's revenue. They will be structured into separate companies under the management of a new legal entity Ecosystem MTS. Legally, it will be a 100% subsidiary of MTS, but with greater independence.
Rovshan Aliyev will be appointed CEO of Ecosystem MTS, while Inessa Galaktionova will head MTS. The current head of the company, Vyacheslav Nikolaev, will move to the position of chairman of the board of directors.
"The key task of MTS in the conditions of tight monetary policy will be to reduce the debt load during the next year. In 2025, we will abandon high-cost M&A. To unlock the company's shareholder value, we continue ecosystem transformation, the first steps of which were the IPO of the banking business and the creation of a media holding," Nikolaev said.
He added that the group's IT businesses (MTS Digital, MTS AI, MTS Big Data and CloudMTS) will be united into a single vertical under the MTC Web Services (MWS) brand. In addition, the company will abandon the development of inefficient businesses, such as MTS Auto and MTS Smart Home, whose profitability and growth potential do not meet the overall strategy.
At the same time, MTS continues to carry out digitalization and improve the efficiency of its business processes.
The company predicts that the measures taken will reduce general and administrative expenses through more efficient cost management. At the same time, MTS' debt burden will not grow, and its dividend policy will be maintained.
