26. SEGMENT INFORMATION
Management (chief operating decision maker) analyzes and reviews results of the Company's operating segments separately based on the nature of products and services, regulatory environments and geographic areas. MTS Group's management evaluates the segments' performance based on revenue and operating profit, excluding depreciation and amortization. Management does not analyze assets or liabilities by reportable segments.
The Group identified the following reportable segments:
Russia convergent: represents the results of mobile and fixed line operations, which encompasses services rendered to customers across regions of Russia, including voice and data services, transmission, broadband, pay-TV and various value-added services and retail operations.
Moscow fixed line: represents the results of fixed line operations carried out in Moscow by the Group's subsidiary MGTS. MGTS is the only licensed public switched telephone network ("PSTN") operator in Moscow and is considered a natural monopoly under Russian antimonopoly regulations. Consequently, substantial part of services provided by MGTS are subject to governmental regulation.
Ukraine: represents the results of mobile and fixed line operations carried out across multiple regions of Ukraine.
The "Other" category does not constitute a reportable segment. It includes the results of a number of other operating segments that do not meet the quantitative thresholds for separate reporting, such as Turkmenistan, Armenia, System Integrator, Satellite TV, Navigation Information Systems, Metro-Telecom, Stream, NVision Czech Republic, Litebox, eSports and Belarus.
In 2017, management has started internally assess Russia convergent and NVision Czech Republic, Stream, Navigation Information Systems and Metro-Telecom separately in order to monitor the results and make funding decisions on this basis, and thus has presented them separately. Related financial information was, retrospectively, restated.
The results of operations of UMS are reported as discontinued operations in the accompanying consolidated statements of profit or loss. The segment reporting for the year ended December 31, 2015 was restated accordingly. The consolidated statement of financial position is not required to be retrospectively restated with respect to discontinued operations and therefore as of December 31, 2015 statement of financial position captions in the "Other" category of the following presentation includes UMS.
The intercompany eliminations presented below primarily consist of sales transactions between segments conducted under the normal course of operations.
Financial information by reportable segments is presented below:
Year ended December 31, 2017:
|
|
|
Russia |
|
Moscow |
|
Ukraine |
|
Total |
|
Other |
|
HQ and |
|
Consolidated |
|
|||||||
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External customers |
|
|
365,846 |
|
|
34,350 |
|
|
24,992 |
|
|
425,188 |
|
|
17,618 |
|
|
105 |
|
|
442,911 |
|
|
Intersegment |
|
|
5,136 |
|
|
4,683 |
|
|
1,111 |
|
|
10,930 |
|
|
12,785 |
|
|
(23,715 |
) |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue |
|
|
370,982 |
|
|
39,033 |
|
|
26,103 |
|
|
436,118 |
|
|
30,403 |
|
|
(23,610 |
) |
|
442,911 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit |
|
|
93,821 |
|
|
8,801 |
|
|
5,258 |
|
|
107,880 |
|
|
(871 |
|
|
(10,909 |
|
|
96,100 |
|
|
Depreciation and amortization |
|
|
59,942 |
|
|
10,642 |
|
|
6,106 |
|
|
76,690 |
|
|
3,481 |
|
|
(259 |
) |
|
79,912 |
|
|
Other disclosure: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
|
65,790 |
|
|
7,403 |
|
|
10,573 |
|
|
83,766 |
|
|
2,392 |
|
|
— |
|
|
86,158 |
|
Year ended December 31, 2016:
|
|
|
Russia |
|
Moscow |
|
Ukraine |
|
Total |
|
Other |
|
HQ and |
|
Consolidated |
|
|||||||
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External customers |
|
|
355,056 |
|
|
34,796 |
|
|
27,026 |
|
|
416,878 |
|
|
18,689 |
|
|
125 |
|
|
435,692 |
|
|
Intersegment |
|
|
4,849 |
|
|
4,871 |
|
|
2,161 |
|
|
11,881 |
|
|
14,423 |
|
|
(26,304 |
) |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue |
|
|
359,905 |
|
|
39,667 |
|
|
29,187 |
|
|
428,759 |
|
|
33,112 |
|
|
(26,179 |
) |
|
435,692 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit |
|
|
81,484 |
|
|
10,850 |
|
|
3,599 |
|
|
95,933 |
|
|
3,523 |
|
|
(11,787 |
) |
|
87,669 |
|
|
Depreciation and amortization |
|
|
60,087 |
|
|
10,900 |
|
|
6,304 |
|
|
77,291 |
|
|
4,395 |
|
|
(104 |
) |
|
81,582 |
|
|
Other disclosure: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
|
61,208 |
|
|
7,316 |
|
|
7,666 |
|
|
76,190 |
|
|
3,995 |
|
|
— |
|
|
80,185 |
|
Year ended December 31, 2015:
|
|
|
Russia |
|
Moscow |
|
Ukraine |
|
Total |
|
Other |
|
HQ and |
|
Consolidated |
|
|||||||
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External customers |
|
|
351,406 |
|
|
34,770 |
|
|
25,590 |
|
|
411,766 |
|
|
14,718 |
|
|
155 |
|
|
426,639 |
|
|
Intersegment |
|
|
4,370 |
|
|
4,836 |
|
|
2,604 |
|
|
11,810 |
|
|
4,456 |
|
|
(16,266 |
) |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue |
|
|
355,776 |
|
|
39,606 |
|
|
28,194 |
|
|
423,576 |
|
|
19,174 |
|
|
(16,111 |
) |
|
426,639 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit |
|
|
82,788 |
|
|
13,737 |
|
|
4,715 |
|
|
101,240 |
|
|
2,180 |
|
|
(9,497 |
|
|
93,923 |
|
|
Depreciation and amortization |
|
|
61,202 |
|
|
7,715 |
|
|
5,199 |
|
|
74,116 |
|
|
3,800 |
|
|
(73 |
) |
|
77,843 |
|
|
Other disclosure: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
|
64,194 |
|
|
9,303 |
|
|
19,955 |
|
|
93,452 |
|
|
5,269 |
|
|
— |
|
|
98,721 |
|
The consolidated operating profit is reconciled to the consolidated profit before tax on the face of the consolidated statement of profit or loss.
Financial information by geographic areas is presented below:
|
|
|
For the year ended December 31, |
|
|||||||
|
Revenue |
|
2017 |
|
2016 |
|
2015 |
|
|||
|
Russia |
|
|
405,365 |
|
|
392,764 |
|
|
387,456 |
|
|
Other |
|
|
37,546 |
|
|
42,928 |
|
|
39,183 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue |
|
|
442,911 |
|
|
435,692 |
|
|
426,639 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets(1) |
|
As of |
|
As of |
|
||
|
Russia |
|
|
339,693 |
|
|
340,944 |
|
|
Other |
|
|
37,048 |
|
|
40,710 |
|
|
|
|
|
|
|
|
|
|
|
Total non-current assets: |
|
|
376,741 |
|
|
381,654 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Comprises property, plant and equipment, goodwill and other intangible assets. |
|
Revenues from external customers and non-current assets are allocated to individual countries based on location of operations. No single customer represents 10% or more of the consolidated revenue.