MTS will separate the non-telecommunications businesses of MTS PJSC into separate legal entities under the management of the MTS Ecosystem. The solution will ensure transparency of the company’s activities, faster decision-making and a clearer focus on investments in an environment of high key rates. This is stated in a press release on the MTS website.
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“The telecommunications business will be concentrated in MTS PJSC. Non-telecom companies will be structured into independent companies under the direction of a new legal entity, MTS Ecosystem. Legally, MTS Ecosystem will be a 100% subsidiary of MTS PJSC, but will have greater independence in its activities,” the statement reads.
All of the group’s IT businesses (MTS Digital, MTS AI, MTS Big Data and CloudMTS) will be combined into a single vertical under the MTC Web Services brand. This will eliminate some duplicate functions and will allow, among other things, to increase the efficiency of IT costs, as well as receive additional income from the sale of IT solutions to the external market, MTS noted.
In addition, the company will reduce investments and abandon the development of ineffective areas, for example, MTS Auto and MTS Smart Home, since their profitability and growth potential “do not correspond to the group’s strategy,” the press service said. They specified that they would reduce the number of experimental and high-risk investments “until a more favorable macroeconomic environment.”
The position of president of MTS PJSC will be abolished. Vyacheslav Nikolaev, who held this position, will become chairman of the board of directors. Inessa Galaktionova, who was previously first vice president of telecommunications business, will be appointed general director of MTS PJSC. The MTS ecosystem will be led by Rovshan Aliyev.
MTS also said it is not planning massive job cuts and expects the optimization of business processes to affect less than 2% of the group’s employees.
Previously, on December 20, the board of directors of the Central Bank, after a meeting, decided to maintain the key interest rate at 21% per year. The Central Bank explained this decision by saying that the tightening of monetary conditions in Russia turned out to be more significant than expected in the October decision.
Most analysts and experts surveyed by RB.RU predicted that the regulator would increase the interest rate to 23%, and Alfa Bank’s chief economist Natalia Orlova allowed the rate to immediately increase to 25%.
Author:
Bogdan Muzychenko
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.
