Telecommunications operator MTS, as part of the restructuring of its own assets, will move its IT divisions into an independent structure with the prospect of an initial public offering (IPO), Kommersant reports citing a source familiar with the situation at the company.
Author:
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According to the publication, the structure will be MWS (MTS Web Services), which was created in 2021. This will include cloud services, big data, artificial intelligence, cybersecurity and innovation divisions, such as MTS Digital, MTS AI, MTS Cloud, Big Data, as well as VisionLabs (which deals with intelligent vision systems).
According to the newspaper’s interlocutor, the revenue of the new company until 2030 could reach 230 billion rubles. At the same time, the revenue of the entire MTS group in 2023 amounted to 422 billion rubles, a year-on-year increase of 7%. MWS JSC (MWS) revenue is not disclosed, while in the third quarter of 2024 the parent company reported that its cloud division grew by 42%.
The company could launch an initial public offering in the future, allowing it to attract investment and reduce its debt load, one of the newspaper’s sources said. The position of head of the new structure may be filled by MTS’s first vice president of technology, Pavel Voronin, the source added.
Earlier this week Frank Media reportedthat the president of the company, Vyacheslav Nikolaev, who has worked for the operator since 2004, will soon leave this position. According to one of the publication’s interlocutors, Nikolaev could begin to restructure the corporate governance system and the company’s ecosystem as a whole, appointing a separate general director from among the vice presidents of each party.
“Now the company cannot withstand competition due to the internal limitations of the ecosystem, it needs to develop according to market rules,” telecommunications analyst Alexey Slukin told Kommersant. In his opinion, moving the group’s information technology business to a separate company will give it “more freedom to implement internal development tasks and support ecosystem services.”
According to Pavel Okhonin, partner at investment company Kama Flow, the possible launch of an MTS subsidiary for an initial public offering could reduce the company’s overall debt load and open the possibility of increasing dividends.
Author:
Mikhail Zelenin
Source: RB
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
