Nowadays, it is almost impossible to imagine our lives without a smartphone. Its memory keeps dozens of phone numbers, allowing us to communicate with our relatives, colleagues, friends, etc. In addition, in a mobile browser, we can find the answer to any question.
Our life is concentrated in this rectangular glowing gadget. When we leave it at home, we feel rather uncomfortable.
We can say a lot about the benefits and indispensability of smartphones in the life of every person. Today, we will focus on the largest mobile network operator in Russia, MTS. The company provides its clients with immediate access to the international mobile network. It is time to learn more about the company’s products, prospects, and shares.
Past and future of company
Mobile TeleSystems (MTS) is a telecommunication company that offers mobile and local telephone services, access to the Net, digital services, voice communication, and Internet roaming in Russia and the CIS.
The company’s history dates back to October 1993. Then, several Russian and German companies created a closed joint stock company. MTS became the first company in Russia that received a license to provide communication services in the GSM-900 range.
A year later, the company started offering its services on the territory of Moscow and the Moscow region.
In 1997, MTS decided to promote its services in Russian regions and in early 2000, its client base exceeded 1 million.
In the same year, Open Joint Stock Company Mobile TeleSystems appeared as a result of merging MTS and Russian Telephone Company. In the summer of 2002, the company began offering its services in Belarus. In autumn of the same year, MTS started selling tariffs without a subscription fee. Thanks to this fact, in 2003, the company’s client base totaled 15 million clients.
In addition, in 2003, the company expanded its cellular communication service to the territory of Ukraine, in 2004 – to Uzbekistan, and in 2005 – to Turkmenistan.
In general, the early 2000s were memorable for MTS due to rising competitiveness of such operators as PJSC VimpelCom and MegaFon. At the same time, MTS was merging regional mobile phone operators and developing new networks, thus gaining popularity in Russian regions and the CIS. Shortly after, such an aggressive approach started bearing fruit.
Thus, in 2008, the corporation launched the operation of its networks in 82 Russian regions. In addition, that year, the 3G network became available in Saint Petersburg, Kazan, Ekaterinburg, and Sochi. In 2009, the number of users surpassed 100 million. The MTS brand became the most expensive one in Russia, whereas the number of offices totaled 2,000. In the spring of 2012, the company provided 150 Russian regions with digital television. As a result, its clients received access to the content in HD format.
In 2011, MTS signed an agreement with the international producer of electronics, Samsung Electronics, on the further development of Samsung branded stores in Russia.
In the following year, the corporation launched the active development of the 4G network. By the end of the year, the network was available in 76 Russian regions.
Today, MTS is one of the leaders in the mobile market in Russia and the CIS. The corporation’s client base exceeds 120 million people worldwide. Its subsidiaries provide GSM services on the territory of Russia as well as in Belarus, Armenia, Turkmenistan, Ukraine, and Uzbekistan.
The company is actively developing high-speed mobile networks, navigation and telematics services, its own transport infrastructure, as well as mastering new areas of business and financial services (electronic document management and cloud computing solutions).
In 2006, MTS presented its new brand in the form of an egg. According to the company’s management, the egg reflects “external simplicity that hides the striking complexity of what is inside.”
MTS stock
The IPO of the company's shares took place in the summer of 2000 at the New York Stock Exchange under the ticker of MBT. In 2004, the company’s shares entered the Russian stock market. Today, more than 10% of the overall share volume is traded there.
AFK Sistema PAO is the largest holder of MTS shares. It owns 53.5%, whereas the remaining 46.5% of shares are in free circulation. Today, the stock of Mobile TeleSystems is traded at the New York, Frankfurt, Berlin, Munich, London, and Moscow stock exchanges.
Analysts suppose that the company’s shares are underestimated. This means that they have a strong potential to rise.
An individual can also trade the company’s shares. To do so, he/she should open a trading account with a broker that provides access to the world’s largest stock markets, including the NYSE. The registration process will take just several minutes. For example, to register with InstaForex, you need just 3 minutes.
The minimum trade size is 1 lot that equals one company’s share. Use Forex Calculator on InstaForex website to calculate your possible income.
Then, you can enter the market, buying and selling shares of MTS or other popular companies. The MT4 trading platform from InstaForex will become your best assistant in trading.
To create a profitable trading strategy, investors should undergo online training and receive knowledge about the key methods of market analysis.
For this purpose, InstaForex has developed an InstaForex course for beginners that includes the main information about peculiarities and secrets of successful trading in global markets.
*A ticker is a short name for trading instruments listed on the exchange.
Factors that affect MTS stock
The share price of Mobile TeleSystems could be influenced by the following factors:
• Territorial expansion of the company's services and rising demand for them. Every innovation, competitive advantage, and a decline in the price of a product boost the growth and profit of the company.
• Important events in the global economy. Thus, a slump in global markets may result in a lower share price, whereas the opposite situation may support the company’s stock.
• Company’s internal statistics. As a rule, MTS shares advance amid the publication of quarterly reports on a higher revenue.
• Main clients of the company and the popularity of the trademark. Large contracts with other companies also support the share price.
• Seasonal demand for the company’s services as well as political risks caused by the location of the company’s offices in foreign countries.
You can get the real time information about the latest events in the life of the company and the state of the global telecommunication segment in the FOREX ANALYSIS&REVIEWS section on the InstaForex website.
MTS dividend policy
MTS has always been known for paying high dividends to its shareholders. The company has never disappointed holders of its shares. In 2019, MTS implemented a new dividend policy that made the company’s stock even more attractive for investors.
According to the new corporate document, payments to the company's shareholders depend on the free cash flow and not on the net profit. The payout amounts to at least 28 Russian rubles per share in 2019-2022. The previous policy presupposes the payout of 25-26 Russian rubles per share.
In 2019, when the company sold its Ukrainian department, a part of the received income was used to pay special dividends in January 2020.
Conclusion
Judging by the history of MTS stock, we can see that the share price almost never drops. Constantly mounting demand for the services of mobile communication on the territory of Russian and other countries is the main driver of the firm’s growth.
Since the telecommunication market is actively developing and long-term forecasts encourage traders to invest in MTS, its shares have every reason for a further rise. In addition, analysts recommend including MTS shares in investors’ portfolios with a long-term perspective.
If the above-mentioned information is a strong argument to become a part of MTS by investing funds in its shares, visit InstaForex website and open a trading account in a jiffy.