Industry leader Viva-MTS summarizes 2023 financial results

Subscribers:

As of December 31, 2023, the Viva-MTS subscriber base was 2.3 million subscribers, an increase of 2.2 percent compared to 2022. The majority of subscribers, 1.87 million, use the Internet. Compared to the previous year, the number of subscribers using the Internet increased by 4.4%.

New activations increased by 6.2% compared to the previous year, making 650 thousand. subscriber: In 2023, the company's subscribers mostly preferred the Unlim tariff plan with an activation fee of AMD 4,500. It is also widely popular among tourists visiting Armenia, thanks to the better coverage of the company's network in the country.

2022 2023 2023/ 2022

Number of active subscribers (as of the end of the reporting period) 2,266,979 2,316,656 2.2%

Subscribers using Internet services 1,796,289 1,874,430 4.4%

New activations 612,791 650,741 6.2%

"Viva-MTS continues to record steady growth. this is the result of innovation, effective corporate governance, investment and teamwork. It is noteworthy that in a highly competitive market, Viva-MTS always emerged as the winner in a situation where it was the only operator that did not provide households with a fixed connection. Now that we have launched the RED tariff plan, with the efforts of our and partner teams, we can provide them with a competitive tool and provide the population with mobile communication, fixed Internet and TV services. Opportunities for further progress have opened up. "Viva-MTS continues to expand the 5G network it has invested in, the only one in Armenia, and to improve the 3G and 4G networks," said Armen Avetisyan, the general director of the company.

Revenues

According to the results of 2023, the company records a stable high financial growth. Operating revenues increased by 5% compared to 2022, making 53.52 billion drams, and revenues from Internet services increased by 6.5%, making 27.21 billion drams.

2022 2023 2023/2022

Operating revenues 50.98 billion AMD 53.52 billion AMD 5%

Income from internet services 25.56 billion drams 27.21 billion drams 6.5%

Revenues from roaming services 1.13 billion AMD 1.59 billion AMD 40%

OIBDA 25.07 billion AMD 26.46 billion AMD 6%

OIBDA 49.18% 49.43% 0.25%

Capital expenditure CAPEX 10.34 billion AMD 11.02 billion AMD 7%

The main indicators were improved by the increase in revenues from communication services, which was facilitated by many initiatives implemented within the framework of the company's literate strategy aimed at creating additional value for subscribers;

in particular, for users of Internet services

* Unlim tariff plan has been launched

* Subscribers of tariff plans X and Y received 2 times more Internet and voice packages

* Yandex+ subscription has become available to subscribers of tariff plans X and Y without additional fees, giving the opportunity to enjoy a number of Yandex+ digital services, including watching movies, listening to music, and getting more affordable trips when ordering a taxi.

* Litq+ service was improved, which allowed subscribers to use communication services up to AMD 3000 and pay for them later

Compared to the previous year, an unprecedented 40% increase in revenues from roaming services was recorded, which is due to the convenience of the "VOYAGE" service. subscribers in 2023 had the opportunity to use up to five times more Internet within the "VOYAGE" service.

Cloud services

2022 2023 2023/2022

Cloud services 50.4 million AMD 96.4 million AMD 91.4%

The income from cloud services in 2023 amounted to 96.4 million drams, the increase compared to 2022 was 91.4%.

Capital Expenditure/Investment

The company's capital expenditures in 2023 amounted to 11.02 billion drams, increasing by 7% compared to the previous year, as a result of which the company made the first investment in Armenia in 2023.

* The 5G network, which is currently operating in the small center of Yerevan, the central part of Gyumri and several other settlements. The company plans to expand the availability of the 5G network both in Yerevan and in the regions in the coming years.

* Innovative VoLTE and VoWiFi (Wi-Fi Calling) services, which are available only in the Viva-MTS network and are used by more than half of the company's subscribers. Subscribers use the VoWiFi service both in Armenia and abroad, and local tariffs are applied for such calls.

Also, during 2023, Viva-MTS carried out large-scale re-equipment works aimed at upgrading the 4G/LTE network. By the end of 2023, more than 170 base stations operating with 4G/4G+ technology have been built by Viva-MTS. As a result, 4G/4G+ coverage became available to 99.6% of the population.

* 2G - available to 99.5 percent of the population

* 3G - available to 99.8 percent of the population

* 4G/LTE - available to 99.6 percent of the population

* 13 solar powered stations

Corporate social responsibility

In 2023, in total, Viva-MTS allocated 221 million 230 thousand drams for social investments in 2023. Support to the National Autism Foundation, cooperation with the "SORS" Foundation, support to the field of ICT education, environmental programs, as well as the use of new technologies contribute to reducing the burdens of villages and mitigating the capital-provincial development gap (FPWC). The company continues its support to the "Paros" choir operating under the "Unison" NGO. As a leader in the field, Viva-MTS supports ICT projects that contribute to increasing Armenia's competitive advantage. The volume of social investments made since the day of establishment is AMD 28,000,221,230. More details here

Taxes:

Viva-MTS, which has always ranked highest among all operators in the list of large taxpayers, is also leading the list of operators this year with the highest figure, occupying the 13th position in the list of large taxpayers. In 2023, the company paid AMD 13,034,433,600 in taxes, the most among companies in the sector.