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International Cannabrands Provides Update on Strategy and Corporate Matters

International Cannabrands Provides Update on Strategy and Corporate Matters

Calgary, Alberta (FSCwire)International Cannabrands Inc. (CSE:JUJU.A) (the “Company” or “ICI”). On August 18, 2018, the Board of Directors of ICI held its quarterly Board of Directors meeting. The full Board attended in person as well as select independent advisors and contributors. The agenda was a fulsome one with the main items being discussion of 2nd quarter results, recent expense reduction initiatives, the refresh and relaunch of the Julian Marley JuJu Royal™ brand and the current acquisition pipeline.

After reviewing strategic alternatives and discussing the cannabis market evolution, the Board formally approved ICI’s strategy of aggregating emerging brands, regional distribution companies and select, highly profitable value chain investments.

“This was my first official Board Meeting as CEO. It was truly gratifying and energizing to have the Board so engaged, so supportive and ready to contribute in all aspects of our journey. I believe we have a unique strategy and the spirit and people to make it happen.” – Steve Gormley, CEO.

The Board unanimously approved the JuJu Royal brand strategy and first generation actions to aggressively expand distribution and consumer sales. Travis Belcher, President of JuJu Royal, led a detailed review of the compliant packaging refresh, specific activities to expand sales and distribution and a heavy fall/winter promotions schedule in key product lines.

“The team is excited about the opportunity to capitalize on our recent momentum. Having a live Julian Marley tour and several new, energetic distributors provide us an amazing foundation to make a huge impact with consumers over the remainder of the year and into 2019.” – Travis Belcher, President JuJu Royal.

ICI’s Board engaged in an update on the La Vida Verde transaction status, which ICI fully intends to close in the near future, and a detailed discussion around the potential to fully exploit the Riotus LLC investment, both in terms of valuable earnings contributions in 2019 and potential leverage into new state distribution relationships. The Board unanimously approved employing all efforts to get both opportunities closed and to continue to expand the investment pipeline.

“ICI has long had a vision of being a home to entrepreneurial brands and distributors. Sometimes it takes a little longer than you’d like to get the traction a business needs. It really feels like we have that now in full.” – Jeff Britz, Chairman.

The Board was updated on two important financial initiatives: reducing corporate expenses as a percentage of sales to increase available investment to brand performance and tightening inventory controls to increase turnover and enhance return on assets.

“As ICI continues to expand its businesses, having solid transparency in financial performance and strong procedures will help us manage and report to investors.” Steve Gormley, CEO.

The Board expects to increase its investor and business community communications going forward and looks forward to the anticipated success of the numerous efforts underway.

About International Cannabrands (ICI)

ICI acquired the exclusive rights to Julian Marley’s JuJu Royal brand. ICI currently generates revenue from licensing brands to growers, edible manufacturers, oil extractors, producers of ancillary products and apparel in the United States where cannabis has been legalized at the state level, as well as products containing CBD in the US and internationally. ICI intends on acquiring micro brands with highly profitable operations in the cannabis space. The Company believes as the market becomes saturated with products varying in potency and quality, that the branded products will rise to the top and ICI intends to exploit all opportunities available to realize the full value of the Julian Marley brand and other brands.

About JuJu Royal

Julian Marley conveys his message of legalization, freedom, and love through the JuJu Royal brand, a line of naturally produced medicinal herbs using the best solventless technology. One percent of proceeds are distributed for the benefit of veterans using cannabis through the Weed for Warriors Project. More information about the brand and various products can be obtained at International Cannabrands is continuing to work with Julian Marley to identify and develop future strains of marijuana that meet Julian’s exacting standards. The intent is to make these strains available to dispensaries and caregivers on a worldwide basis where it is legal.

International Cannabrands Contact:

Steve Gormley CFN Media Contact:

Chief Executive Officer Frank Lane (206) 369-7050

1045 Lincoln Street, #106

Denver, Colorado 80203

Ph (323) 828-4321 or

Media Inquiries:


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Fifth Corner Acquires Popular Retail Center in Garden Oaks Neighborhood in Houston

By Fifth Corner

HOUSTON, TX / ACCESSWIRE / August 21, 2018 / Fifth Corner ( announces that it has completed the acquisition of the Garden Oaks Center in Houston, Texas. This 100% occupied property is located in the Garden Oaks neighborhood of Houston at the traffic lighted intersection of the northeast corner of 34th Street and North Shepherd Drive. This is the fourth property investment for Fifth Corner Property Fund I, LP (“the Fund”) since the closing of its initial capital commitments in February 2018.

The Garden Oaks Center is comprised of approximately 14,000 square feet of improvements situated on 0.80 acres in an infill, community-oriented neighborhood directly adjacent to Graham Park and within close proximity to Loop 610, The Heights neighborhood and a 10-minute drive from Downtown Houston. The area has experienced tremendous growth and revitalization over the last 10 years and continues to improve given its proximity to major roads and employment centers.

“With the addition of the Garden Oaks Center, we are excited to grow the Fifth Corner footprint with the consistent quality of our Irreplaceable Corners™,” says Tenel Tayar, Co-Founder and Managing Partner at Fifth Corner. “With fundamentals that fulfill all of our “5D” investment framework, we are enthusiastic about the potential of this property and the opportunity to create value for our investors.”

The Fund has a fifth property under contract in one of Fifth Corner’s target markets. The anticipated closing date for the property is scheduled for the third quarter 2018.


Fifth Corner is a Houston-based real estate company comprised of local sharpshooters investing and creating value on Irreplaceable CornersTM – retail and mixed-use properties in targeted urban and emerging urban submarkets. For more information, please visit their website at or contact Chad Braun at

Forward-Looking Statements

Statements included herein that state the Company’s or management’s intentions, hopes, beliefs, expectations or predictions of the future are “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbors created thereby. Such statements, by their nature, involve known and unknown risks and uncertainties. The Company’s actual results, performance or achievements could differ materially from those expressed or implied by these statements.


Chad Braun: 281-251-5550

SOURCE: Fifth Corner

ReleaseID: 510410

Cannabis Consortium Is Merging All Operations Under Bahamas Development Corporation

By Bahamas Development Corp

  • Approximately Asset Value $38,400,000
  • Estimated Revenue for 2018 $5,000,000
  • Estimated Revenue for 2019 $100,000,000

COCONUT CREEK, FL / ACCESSWIRE / / August 21, 2018 / Bahamas Development Corporation (OTC PINK: BDCI) affiliate company Global Consortium, Inc. dba Cannabis Consortium and its partners have all agreed to merge all of the operations and assets under Bahamas Development Corporation.

BDCI filed its 2nd Quarter financial report last night and within the report, it details all of the assets and operations that will be merged into Bahamas Development as wholly owned divisions.

The group has also agreed to change the name of the Company to Global Consortium, Inc.

The operations of Global Consortium will merge in first, which includes the Hemp farm in CO, Infused Edibles, and Indulge Oils. These operations will be merged effective as of July 1, 2018, and will file consolidated financials beginning September 30, 2018.

Once Global’s operations have merged in then the Partnership company ToMarRa, LLC a Nevada corporation will merge its assets into the Company.

Upon complete consolidation of all operations, the conservative estimated value of the assets will be $38,400,000 as explained within the 2nd Quarter financial report.

The conservative estimate of revenue for 2018 is $5,000,000 and the conservative estimated revenue for 2019 is $100,000,000.

Further in-depth details have been explained within the June Quarterly financials as posted to

Bahamas Development Corporation, in compliance with SEC regulations, may in the future use social media outlets like Facebook or Twitter and its own website to announce key information in compliance with Reg FD.

Forward-Looking Statements

This news release contains “forward-looking statements” as that term is defined in Section 27(a) of the United States Securities Act of 1933, as amended and Section 21(e) of the Securities Exchange Act of 1934, as amended. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, estimates of services and equipment markets, release of corporate apps, growth of platform, target markets, product releases, product demand and, business strategy. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects and development stage companies. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also consider that any investment in securities is at risk.

Details of the Company’s business, finances, appointments and agreements can be found as part of the Company’s continuous public disclosure on
For additional information about this release please contact:

Investor Relations:
Matt Dwyer

SOURCE: Bahamas Development Corporation

ReleaseID: 510459

Palamina’s Commences Heliborne Geophysical Survey Over Three Gold Projects in Peru

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Toronto, Ontario–(Newsfile Corp. – August 21, 2018) – Palamina Corp. (TSXV: PA) reports that New-Sense Geophysics Limited has commenced a 3,083 line kilometer heliborne geophysical survey over its Coasa, Gaban and Cori gold projects in the Puno Orogenic Gold Belt (“POGB”) in south-eastern Peru. In the POGB, gold mineralization frequently has an association with magnetic pyrrhotite within swarms of orogenic quartz veins and veinlets restricted to discrete, continuous packages in shear zone structures hosted by fine-grained sedimentary units. Palamina believes results from the heliborne survey will outline regional structures and help focus follow up ground exploration on identifying the most prospective sectors for possible drill testing.

Andrew Thomson, President of Palamina stated, “The heliborne geophysical surveys should rapidly advance our understanding of the structural and geological attributes of the Gaban, Coasa and Cori gold projects. Palamina is the first company to conduct airborne geophysics over these areas and continues to advance its understanding of the structures in the POGB. Given the success to date of our mapping and prospecting efforts we believe this additional information will accelerate our pace of discovery.”

Coasa Gold Project:

At Coasa, the heliborne geophysical survey will target the extension of the regional shear-zone hosting GoldMining’s Crucero gold deposit and the recent gold discoveries by the Company along the projection of the same structure near Phusca. The survey will also look to expand on the recently identified Veta Zone discoveries where gold values up to 39.2 g/t gold and 7 m of 4.2 g/t gold were returned from chip sampling (see July 5, 2018 NR21).

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The three programmed heliborne geophysical surveys are being flown at a constant terrain clearance altitude of approximately 40 metres measuring magnetic and radiometric data. Survey flight lines will total approximately 3,083 line-kilometres and be flown approximately perpendicular to the dominant structural trends and depending on Palamina objectives, on parallel line-spacing’s of 125 metre, 250 metre and 500 metre intervals. Magnetic and radiometric data will be downloaded at frequent intervals so that target identification can commence immediately, rather than on completion of the survey.

Palamina has secured 5 gold projects in south-eastern Peru in the POGB based on the undertakings of an exploration team having a cumulative 35 years’ experience in the POGB. The POGB is one of the world’s least formally explored orogenic gold belts. Palamina’s five district scale gold projects now cover 78,500 hectares in the POGB. All have previously been to some extent “ground-truthed” by artisanal, small-scale and informal miners who are generally limited to mining gold from the top 50—100 metres below surface. Mineralized orogenic systems can extend down dip to over 1,000 metres in depth. Palamina continues to drive shareholder value through discovery.

Mr. Donald McIver, M,Sc Exploration and Economic Geology, a Fellow of the Australian Institute of Mining and Metallurgy (FAusIMM), as well as the Society of Economic Geologists (FSEG), is Vice President Exploration for Palamina Corp. He is a Qualified Person as defined by National Instrument 43-101 and has supervised the preparation, compilation and review of the geological and technical contents of this press release.

About Palamina Corp.

Palamina has acquired the application and mining rights to five gold projects in south-eastern Peru in the Puno Orogenic Gold Belt (POGB), one copper-gold project in the coastal I.O.C.G. belt in Southern Peru and holds 100% interest in one exploration project in Mexico. Palamina’s Peruvian based exploration team have a cumulative 35 years’ experience in the POGB and are supported by a board of directors and advisors who are proven mine finders, deal makers and financiers. Palamina has 29,621,381 shares outstanding and trades on the TSX Venture Exchange under the symbol PA.


Andrew Thomson, President
Phone: (416) 987-0722 or visit

This news release contains certain “forward-looking statements” within the meaning of such statements under applicable securities law. Forward-looking statements are frequently characterized by words such as “plan”, “continue”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “potential”, “proposed” and other similar words, or statements that certain events or conditions “may” or “will” occur. These statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. Forward-looking statements include, but are not limited to, the use of proceeds of the Offering and the Company’s future business plans. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. A more complete discussion of the risks and uncertainties facing the Company appears in the Company’s continuous disclosure filings, which are available at Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Seahawk Ventures Inc. Significantly Increases Urban-Barry Holdings

Vancouver, British Columbia–(Newsfile Corp. – August 21, 2018) – Seahawk Ventures Inc. (CSE: SHV) (Seahawk) announces that it has entered into a property purchase agreement with Mitchell E. Lavery to acquire the Blitz Property, comprised of 67 claims covering 6,624 hectares in Quebec’s Urban-Barry Greenstone Belt (the “Agreement“). With this latest acquisition, Seahawk’s holdings in the Urban-Barry Greenstone Belt have grown to 25,225 hectares.

In the Urban-Barry Area, only Osisko’s land package is significantly larger than Seahawks. With the acquisition of the Blitz claims, Seahawk continues to grow its holdings in Urban-Barry with a view to increasing future returns to its shareholders,” commented John Gasbarro, President and CEO of Seahawk.

The Blitz property is located in the Urban-Barry Greenstone Belt, approximately 30 kilometres north of Lebel-Sur-Quevillon and 150 km north-east of Val-d’Or in the Abitibi region of Quebec, and is accessible by existing roads. The Blitz Property is comprised of two blocks of claims- the eastern block is adjacent to Oskisko’s property, and the western block is adjacent to the Grevet mine owned by Nyrstar.

Under the terms of the Agreement, Seahawk will pay Mr. Lavery $8,000 in cash and issue 1,650,000 shares for 100% interest in Blitz Property, subject to a 2.5% net smelter return royalty. Seahawk will have the right of first refusal on the royalty in whole or in part. Mr. Lavery is a director of Seahawk, and declared his interest and abstained from voting in respect of the approval of the agreement. The value of the consideration paid to Mr. Lavery is less than 25% of the market capitalization of Seahawk, and as a result, the transactions contemplated by the Agreement are exempt from the minority approval and valuation requirements of Multilateral Instrument 61-101.

For more information please contact:

Seahawk Ventures Inc.

John Gasbarro,
President, CEO at 1-604-939-1848

Mitchell E. Lavery P.Geo.,
Vice-President Exploration, Corporate Development, Director at 1-613-298-1596

Excelsior Mining Welcomes Stephen Axcell to the Board of Directors

Phoenix, Arizona–(Newsfile Corp. – August 21, 2018) – Excelsior Mining Corp. (TSX: MIN) (OTCQX: EXMGF) (FSE: 3XS) (“Excelsior” or the “Company”) is pleased to announce that Mr. Stephen Axcell has joined the Board of Directors. The new appointment is in keeping with Excelsior’s continuing effort to add additional team members with production experience as the Gunnison Copper Project targets commercial production in 2019. Mr. Axcell will also join the Company’s Project Steering Committee.

Mr. Axcell is an executive leader with 38 years of experience with strengths in mining operations management and project management execution, including process plant design and construction management; with industry expertise in mining and minerals, pharmaceutical, and hydrocarbon projects. He has vast experience in international design and construction projects. Experience includes management and oversight of large and small projects, complex process facilities in both green-fields and retro-fit (brown fields) environments.

Mr. Axcell is currently an Independent Consultant providing services to the Mining Industry and large capital projects with an emphasis on achieving project delivery excellence. He was until recently a Senior Vice President for Jacobs Engineering Group. At Jacobs his role included operational responsibilities for the Americas Mining and Minerals group and latterly the Asia Pacific region. The role included resourcing all projects, striving for ‘flawless’ project execution and growing the business. Prior to rejoining Jacobs, Stephen worked for the largest diamond mining company in the world by value, initially charged with managing and executing a large multi-billion-dollar capital project portfolio and subsequently as Deputy Managing Director responsible for all the technical functions within the company. Mr. Axcell holds a BSc (Eng) Minerals Processing from the University of the Witwatersrand, South Africa.

Mark J. Morabito, Chair of the Board of the Company states “I am pleased to welcome Steve Axcell to the Board of Excelsior. His vast array of experience in project management, process plant design, and construction management will bring valuable input to the team and we look forward to his contributions as our world class management team drives the Company forward to production targeted for 2019.”

About Excelsior

Excelsior Mining “The Copper Solution Company” is a mineral exploration and development company that is advancing the Gunnison Copper Project in Cochise County, Arizona. The project is an advanced staged, low cost, environmentally friendly in-situ recovery copper extraction project. The Feasibility Study projected an after-tax NPV of US$807 million and an IRR of 40% using a US$2.75 per pound copper price and a 7.5% discount rate.

Excelsior’s technical work on the Gunnison Copper Project is supervised by Stephen Twyerould, Fellow of AUSIMM, President & CEO of Excelsior and a Qualified Person as defined by National Instrument 43-101. Mr. Twyerould has reviewed and approved the technical information contained in this news release.

Further information about the Gunnison Copper Project can be found in the technical report filed on SEDAR at entitled: “Gunnison Copper Project, NI 43-101 Technical Report, Prefeasibility Study Update” dated effective January 28, 2016.

For more information on Excelsior, please visit our website at


“Stephen Twyerould”
President & CEO

For further information regarding this press release please contact:

Excelsior Mining Corp.
JJ Jennex, Vice President, Corporate Affairs
T: 604-681-8030 x240

Cautionary Note Regarding Forward-Looking Information

This news release contains “forward-looking information” concerning anticipated developments and events that may occur in the future. Forward looking information contained in this news release includes, but is not limited to, statements with respect to: (i) the timeline for commercial production from the Gunnison Project; (ii) the results of the Feasibility Study; and (iii) the ability to mine the Gunnison Project using in-situ recovery mining techniques.

In certain cases, forward-looking information can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved” suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. Forward-looking information contained in this news release is based on certain factors and assumptions regarding, among other things, the estimation of mineral resources and mineral reserves, the realization of resource and reserve estimates, copper and other metal prices, the timing and amount of future exploration and development expenditures, the estimation of initial and sustaining capital requirements, the estimation of labour and operating costs, the availability of necessary financing and materials to continue to explore and develop the Gunnison Project in the short and long-term, the progress of exploration and development activities, the receipt of necessary regulatory approvals, the completion of the permitting process (including the resolution of any filed appeals), the estimation of insurance coverage, and assumptions with respect to currency fluctuations, environmental risks, title disputes or claims, and other similar matters. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.

Forward looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include risks inherent in the exploration and development of mineral deposits, including risks relating to changes in project parameters as plans continue to be redefined including the possibility that mining operations may not commence at the Gunnison Project, risks relating to variations in mineral resources and reserves, grade or recovery rates resulting from current exploration and development activities, risks relating to the ability to access infrastructure, risks relating to changes in copper and other commodity prices and the worldwide demand for and supply of copper and related products, risks related to increased competition in the market for copper and related products and in the mining industry generally, risks related to current global financial conditions, uncertainties inherent in the estimation of mineral resources, access and supply risks, reliance on key personnel, operational risks inherent in the conduct of mining activities, including the risk of accidents, labour disputes, increases in capital and operating costs and the risk of delays or increased costs that might be encountered during the development process, regulatory risks, including risks relating to the acquisition of the necessary licenses and permits, financing, capitalization and liquidity risks, including the risk that the financing necessary to fund the exploration and development activities at the Gunnison Project may not be available on satisfactory terms, or at all, risks related to disputes concerning property titles and interest, environmental risks and the additional risks identified in the “Risk Factors” section of the Company’s reports and filings with applicable Canadian securities regulators.

Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information is made as of the date of this news release. Except as required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward-looking information.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release, and no securities regulatory authority has either approved or disapproved of the contents of this release.

MorphoSys to Present at Upcoming Investor Conferences

By MorphoSys AG

PLANEGG and MUNICH, GERMANY / ACCESSWIRE / August 21, 2018 / MorphoSys AG (FSE: MOR; Prime Standard Segment, TecDAX; NASDAQ: MOR) will present at the following conferences:

Commerzbank Sector Conference

Date: August 28, 2018
Venue: Frankfurt, Germany
Presenter: Jens Holstein, Chief Financial Officer of MorphoSys AG
Alexandra Goller, Associate Director Corporate Communications & IR

Goldman Sachs Eighth Annual Biotech Symposium

Date: September 7, 2018
Venue: London, UK
Presenter: Dr. Simon Moroney, Chief Executive Officer of MorphoSys AG
Jochen Orlowski, Associate Director Corporate Communications & IR

Baader Investment Conference

Date: September 24, 2018
Venue: Munich, Germany
Presenter: Alexandra Goller, Associate Director Corporate Communications & IR
Dr. Claudia Gutjahr-Löser, Investor Relations Officer

Berenberg and Goldman Sachs Seventh German Corporate Conference

Date: September 25, 2018
Venue: Munich, Germany
Presenter: Jens Holstein, Chief Financial Officer of MorphoSys AG
Dr. Malte Peters, Chief Development Officer of MorphoSys AG

PDF versions of the presentations will be provided at The link to the webcasts, if available, will be filed under

About MorphoSys

MorphoSys is a late-stage, biopharmaceutical company devoted to the development of innovative and differentiated therapies for patients suffering from serious diseases. Based on its technological leadership in generating antibodies, MorphoSys, together with its partners, has developed and contributed to the development of more than 100 product candidates, of which 29 are currently in clinical development. This broad pipeline spans MorphoSys’s two business segments: Proprietary Development, in which the Company invests in product candidates for its own account, and Partnered Discovery, in which product candidates are developed exclusively for a variety of Pharma and Biotech partners. In 2017, Tremfya(R) (guselkumab), marketed by Janssen, became the first therapeutic antibody based on MorphoSys’s proprietary technology to receive marketing approval for the treatment of moderate to severe plaque psoriasis in the United States, the European Union and Canada. MorphoSys is listed on the Frankfurt Stock Exchange and on the U.S. stock exchange Nasdaq, under the symbol MOR. For regular updates about MorphoSys, visit

HuCAL(R), HuCAL GOLD(R), HuCAL PLATINUM(R), CysDisplay(R), RapMAT(R), arYla(R), Ylanthia(R), 100 billion high potentials(R), Slonomics(R), Lanthio Pharma(R) and LanthioPep(R) are registered trademarks of the MorphoSys Group. Tremfya(R) is a trademark of Janssen Biotech, Inc.

MorphoSys forward looking statements

This communication contains certain forward-looking statements concerning the MorphoSys group of companies, including the transition of MorphoSys to a fully integrated biopharmaceutical company. The forward-looking statements contained herein represent the judgment of MorphoSys as of the date of this release and involve known and unknown risks and uncertainties, which might cause the actual results, financial condition and liquidity, performance or achievements of MorphoSys, or industry results, to be materially different from any historic or future results, financial conditions and liquidity, performance or achievements expressed or implied by such forward-looking statements. In addition, even if MorphoSys’ results, performance, financial condition and liquidity, and the development of the industry in which it operates are consistent with such forward-looking statements, they may not be predictive of results or developments in future periods. Among the factors that may result in differences are that MorphoSys’ expectations regarding its 2018 results of operations may be incorrect, MorphoSys’ expectations regarding its development programs may be incorrect, the inherent uncertainties associated with competitive developments, clinical trial and product development activities and regulatory approval requirements (including that MorphoSys may fail to obtain regulatory approval for MOR208 and that data from MorphoSys’ ongoing clinical research programs may not support registration or further development of its product candidates due to safety, efficacy or other reasons), MorphoSys’ reliance on collaborations with third parties, estimating the commercial potential of its development programs and other risks indicated in the risk factors included in MorphoSys’s Registration Statement on Form F-1 and other filings with the US Securities and Exchange Commission. Given these uncertainties, the reader is advised not to place any undue reliance on such forward-looking statements. These forward-looking statements speak only as of the date of publication of this document. MorphoSys expressly disclaims any obligation to update any such forward-looking statements in this document to reflect any change in its expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements, unless specifically required by law or regulation.

For more information, please contact:

MorphoSys AG
Alexandra Goller
Associate Director Corporate Communications & IR

Jochen Orlowski
Associate Director Corporate Communications & IR

Dr. Claudia Gutjahr-Löser
Investor Relations Officer

Tel: +49 (0) 89 / 899 27-404

SOURCE: MorphoSys AG

ReleaseID: 510460

MGX Minerals Commences UL Certification of ZincNyx 20kW / 120kWh Zinc-Air Fuel Cell Battery for Use in North America

By MGX Minerals Inc.

VANCOUVER, BC / ACCESSWIRE / August 21, 2018 / MGX Minerals Inc. (“MGX” or the “Company”) (CSE: XMG / FKT: 1MG / OTCQB: MGXMF) is pleased to announce that its wholly owned subsidiary ZincNyx Energy Solutions, Inc. (“ZincNyx”) has engaged the CSA Group for testing, inspection and certification with respect to obtaining regulatory approval under the UL 1973 standard for its 20kW output / 120kWh storage Zinc-Air Fuel Cell Battery. The UL (Underwriters Laboratories) standard applicable to this mass storage battery is titled “Standard for Batteries for Use in Light Electric Rail (LER) Applications and Stationary Applications” and provides the basis on which flow-batteries may obtain approval for deployment in North America and abroad.

The modularity and consistency of the ZincNyx product is beneficial to the regulatory approvals process. The separation of functions into fuel regeneration, fuel storage and power generation subsystems simplifies the approvals process by allowing each function to be evaluated individually without the complication of interaction with other subsystems. It also enables common components and materials to be evaluated only once and the results applied system-wide. The scalability of the system further enables testing to be performed at small scale and then applied to large scale modular deployments.

Figure 1. Typical 5kW Modular System

About ZincNyx Energy Solutions

ZincNyx has developed a patented regenerative zinc-air flow battery that efficiently stores energy in the form of zinc particles and contains none of the traditional high cost battery commodities such as lithium, vanadium, or cobalt. The technology allows for low cost mass storage of energy and can be deployed into a wide range of applications.

Unlike conventional batteries, which have a fixed energy/power ratio, ZincNyx’s technology uses a fuel tank system that offers flexible energy/power ratios and scalability. The storage capacity is directly tied to the size of the fuel tank and the quantity of recharged zinc fuel, making scalability a major advantage of the flow battery system. In addition, a further major advantage of the zinc-air flow battery is the ability to charge and discharge simultaneously and at different maximum charge or discharge rates since each of the charge and discharge circuits is separate and independent. Other types of standard and flow batteries are limited to a maximum charge and discharge by the total number of cells as there is no separation of the charge, discharge and storage components.

The ZincNyx mission is to provide the lowest cost, longest duration and most reliable energy storage system for markets involving renewables firming, peak shaving, diesel generator replacement, telecom facility back-up, electrification of ferries and tug boats and electric vehicle charging support.

With a portfolio of 20 granted patents and an experienced management team, ZincNyx has begun mass production (see press release August 9, 2018).

To learn more about ZincNyx technology visit

About MGX Minerals

MGX Minerals is a diversified Canadian resource company with interests in lithium, magnesium and silicon assets throughout North America. Learn more at

Contact Information

Jared Lazerson
President and CEO
Telephone: 1.604.681.7735

Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

This press release contains forward-looking information or forward-looking statements (collectively “forward-looking information”) within the meaning of applicable securities laws. Forward-looking information is typically identified by words such as: “believe”, “expect”, “anticipate”, “intend”, “estimate”, “potentially” and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking information provided by the Company is not a guarantee of future results or performance, and that actual results may differ materially from those in forward-looking information as a result of various factors. The reader is referred to the Company’s public filings for a more complete discussion of such risk factors and their potential effects which may be accessed through the Company’s profile on SEDAR at

SOURCE: MGX Minerals Inc.

ReleaseID: 510424

SeeThruEquity Issues Update on Innovus Pharmaceuticals (INNV) and Raises Target Price to $0.75

By SeeThruEquity

NEW YORK, NY / ACCESSWIRE / August 21, 2018 / SeeThruEquity, a leading independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced it has issued an update on Innovus Pharmaceuticals, Inc. (OTCQB: INNV) and has raised its target price to $0.75.

The report is available here: August 2018 Update Note.

Innovus Pharmaceuticals, Inc. (OTCQB: INNV, “Innovus”) is a fast-growing commercial-stage pharmaceutical company that delivers safe, innovative and effective over-the-counter (OTC) medicine and consumer care products to improve men and women’s health, respiratory disease and vitality. Led by CEO Dr. Bassam Damaj, Innovus is based in San Diego, CA and has demonstrated robust growth in its product offerings and annual revenues since we initiated coverage on the company in September 2014. Innovus revenues have grown from approximately $1.0mn in 2014 to $8.8mn in 2017 and guidance for more than $20mn in revenues in 2018.

Innovus reported another quarter of record in 2Q18 on August 14, 2018. In 2Q18, the company continued to generate strong top-line growth from solid execution in its proprietary Beyond Human™ sales and marketing platform, marking the fourth consecutive quarter of record revenue growth. Highlights include:

  • Record quarterly revenues in 2Q18. INNV 2Q18 revenues increased by 258.7% YoY to reach $7.3mn, versus $2.0mn in 2Q17.
  • Revenues rise 60.9% sequentially. Sequentially, revenues grew by an impressive 60.9% from $4.5mn in 1Q18, due to the impact of new products, execution in sales and marketing efforts on the company’s Beyond Human platform, and international expansion.
  • 1H18 topline well ahead of full-year 2017. Impressively, INNV generated $11.9mn in revenues during the first half of 2018 – more than $3mn above full-year 2017 revenues of $8.8mn.
  • Innovus raises guidance. Innovus CEO Bassam Damaj announced that the company was increasing its full-year outlook to $23mn – a significant increase from the company’s guidance of “greater than $18mn” at the end of the last quarter.
  • INNV now markets 32 products in the US and 12 products in multiple countries through international commercial distribution partners. The company has experienced success in the Canadian market, which represented 14% of total revenues in the quarter.
  • Gross margins in 2Q18 remained healthy, coming in at 81%, consistent with 1Q18 and above 2017 levels of 79%.
  • Net loss was flat at in 2Q18 at ($1.8mn), or ($0.01) per share, matching 1Q18.
  • INNV ended the quarter with $1.6mn in cash on the balance sheet and financial debt of $2.0mn. The company had 207.2mn shares outstanding as of August 9, 2018.

Increasing target to $0.75 for Innovus

We are increasing our 2018E revenue estimate to $23mn following guidance from management. Our price target moves to $0.75 per share. We view INNV as a high growth company with several catalysts ahead as the company increases the number of products in its pipeline and expands its sales channels and geographic presence.

Please review important disclosures in the report and on our website at

About Innovus Pharmaceuticals, Inc.

Headquartered in San Diego, Innovus Pharma is an emerging OTC consumer goods and specialty pharmaceutical company engaged in the commercialization, licensing and development of safe and effective non-prescription medicine and consumer care products to improve men’s and women’s health and vitality and respiratory diseases. Innovus Pharma delivers innovative and uniquely presented and packaged health solutions through its (a) OTC medicines and consumer and health products, which we market directly, (b) commercial partners to primary care physicians, urologists, gynecologists and therapists, and (c) directly to consumers through our on-line channels, retailers and wholesalers. The Company is dedicated to being a leader in developing and marketing new OTC and branded Abbreviated New Drug Application (“ANDA”) products. The Company is actively pursuing opportunities where existing prescription drugs have recently, or are expected to, change from prescription (or Rx) to OTC.

About SeeThruEquity

Since its founding in 2011, SeeThruEquity has been committed to its core mission: providing impactful, high-quality research on underfollowed smallcap and microcap equities. SeeThruEquity has pioneered an innovative approach to deliver equity research of microcap and smallcap companies. SeeThruEquity has also been the host of acclaimed investor conferences that are the ultimate event for publicly traded companies with market capitalizations less than $1 billion since 2012.

SeeThruEquity is approved to contribute its research reports and estimates to Thomson One Analytics (First Call), the leading estimates platform on Wall Street, as well as Capital IQ and FactSet. SeeThruEquity maintains one of the industry’s most extensive databases of opt-in institutional and high net worth investors. The firm is headquartered in Midtown Manhattan in New York City.

For more information visit



SOURCE: SeeThruEquity

ReleaseID: 510462

Mobile TeleSystems PJSC: Q2 2018 Financial & Operating Results

By Mobile TeleSystems PJSC

MOSCOW, RUSSIA / ACCESSWIRE / August 21, 2018 / Mobile TeleSystems PJSC (NYSE: MBT, MOEX: MTSS) Q2 2018 Financial & Operating Results:


Excl. impact of new standards [1]
MTS Group – Key figures (RUB bln) Q2 2018 Q2 2017 Y-o-Y Change % Q2
Y-o-Y Change %
Revenue 114.3 106.8 7.0% 114.9 7.6%
of which: Russia 106.4 99.0 7.4% 106.9 7.9%
OIBDA 53.9 44.0 22.5% 46.2 5.1%
of which: Russia 51.1 42.1 21.4% 44.2 5.1%
Operating profit 27.6 23.9 15.7% 25.9 8.4%
Profit attributable to owners of the Company 14.3 14.7 -3.0% 15.0 2.1%
Cash CAPEX [2] 17.6 15.3 14.7% 17.6 14.7%
Net debt [3] 194.5 175.4 10.9% 197.6 12.7%
Net debt / LTM Adjusted OIBDA[4] n/a x1.0 x1.1 n/a
Operating cash flow (for 6 months) 70.1 64.9 8.0% 61.6 -5.1%
Free cash flow (for 6 months) 30.8 40.6 -24.0% 24.4 -39.8%
Mobile subscribers (mln) Q2 2018 Q1 2018 Q-o-Q Change % Q2
Y-o-Y Change %
Total 105.9 106.2 -0.3% 107.8 -1.8%
Russia 78.1 78.1 stable 78.0 0.1%
Ukraine [5] 20.3 20.7 -2.0% 20.8 -2.6%
Armenia 2.1 2.1 0.4% 2.1 stable
Turkmenistan 1.7 n/a
Belarus [6] 5.3 5.3 1.2% 5.1 3.8%

Alexey Kornya, President and Chief Executive Officer, commented on the results:

“In the second quarter of 2018, MTS continued to demonstrate positive trends in each market with particularly strong growth in Russia in the mobile segment. Group revenue increased 7.0% year-over-year to RUB 114.3 bln, while OIBDA grew 22.5% year-over-year to RUB 53.9 bln including the impact of new IFRS standards. On a like-for-like basis, OIBDA grew a solid 5.1% year-over-year. We delivered ahead of our targets and maintained our position as the leading telco in Russia. The Russian competitive environment improved during the reporting period and we benefited from better pricing environment, growing data consumption and encouraging sales of goods.

MTS is on track to further diversify its business and expand its digital product portfolio for retail and corporate customers. We took a number of strategic initiatives to enhance the Group’s potential for innovation. We opened a new R&D Center in Tatarstan to create innovative solutions based on 5G, IoT and Big Data technologies and signed agreements with the municipalities of ten Russia’s regions to stimulate their digital development. We also introduced an innovative telemedicine service using MTS cloud solutions and consolidated a controlling stake at MTS Bank to accelerate the launch of new financial services through streamlined operations and create digital mobile banking. We are in the process of integrating the recently acquired assets into the Group to realize significant synergies from our combined digital capabilities. All these steps are helping to build a solid basis for the Company’s further growth and strategic digital evolution.

We maintain our commitment to providing attractive shareholder returns. In 2018, we intend to pay RUB 26 per share of dividend. On top of that, In July, we launched a new share repurchase program for RUB 30 bln over two years.

While challenges lie ahead related to macro-economic factors, the competitive environment, regulatory changes and uncertainty over distribution, we are confident enough about our outlook for this year to increase our full-year guidance. Now, we forecast a 2-4% increase in revenue and about 2% increase in OIBDA, excluding the impact of new IFRS standards.”



In May, MTS increased its stake in the authorized capital of Ozon Holdings Ltd (OZON) from 13.7% to 16.7% through a series of transactions with minority shareholders Bernard Lukey (0.35% for USD 1.75 mln) and Index Ventures fund (2.65% for EUR 10.83 mln).


In July, MTS’s wholly-owned subsidiary Mobile TeleSystems B.V. acquired a 28.63% stake in MTS Bank PJSC from Sistema PJSFC for RUB 8.27 bln. As a result of the deal, MTS’s share in MTS Bank increased from 26.61% to 55.24%. Greater integration simplifies interaction between MTS and MTS Bank, speeds up the decision-making process, reduces time-to-market for digital financial products and allows better utilizing MTS’s retail networks to expand the bank’s reach.


On June 28, MTS held its AGM. Shareholders approved a final annual dividend of RUB 23.4 per ordinary share (RUB 46.8 per ADR), or in total RUB 46.8 bln (RUB 46,762,117,225) based on the full-year 2017 financial results. The dividend payment was executed by August 13, 2018. AGM elected nine members to the MTS Board of Directors, four of which are independent.


MTS Board of Directors set the date for the Company’s EGM for September 28, 2018 with the record date to participate in the AGM on September 4, 2018. The Board recommended that the EGM approve semi-annual dividends of RUB 2.6 per ordinary MTS share (RUB 5.2 per ADR), or a total of RUB 5.2 billion (RUB 5,195,790,802.80), based on H1 2018 financial results. The Board recommended that the EGM set the record date for shareholders and ADR-holders entitled to receive dividends for the H1 2018 for October 9, 2018.


In April, MTS issued RUB 6.8 bln exchange-traded series BO-01 bond through a secondary placement with a coupon rate of 6.85%. The bond was issued on April 3, 2013 with the initial coupon rate of 8.25%. On April 2, 2018, MTS repurchased RUB 7.4 bln.


In May, MTS placed commercial bonds in the amount of RUB 750 mln using blockchain smart contracts, making it the first transaction of its kind in Russia. For the transaction, the National Settlement Depository (NSD) provided its proprietary blockchain platform based on Hyperledger Fabric 1.1. The primary bond buyer was Sberbank CIS.


In May, MTS restructured two existing loans from Sberbank of Russia for a total amount of RUB 35 bln and signed two loan agreements with PJSC VTB Bank for a total amount of RUB 50 bln.


On July 2, MTS launched a program to repurchase shares of common stock and ADSs under authorization of the Board of Directors for an amount of up to RUB 30 bln, which includes funds used for purchasing the Company’s shares from Sistema Finance over two years. The Company may execute repurchases under the Repurchase Plan pursuant to Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. The repurchases are carried out by the Company’s wholly-owned subsidiary Bastion LLC.


In July, MTS filed a Request for Arbitration against the Sovereign State of Turkmenistan with the World Bank’s International Center for Settlement of Investments Disputes (“ICSID”) in order to protect its legal rights and investments in Turkmenistan. The Company’s total losses are estimated to be at least USD 750 mln.


In June, at Startup Village 2018, MTS and Skolkovo signed a partnership agreement on cooperation in developing Smart City technologies. As the first step under the agreement, the partners launched an IoT pilot zone based on NB-IoT networks at the Skolkovo technopark.


In June, MTS and MTS Bank launched MTS Money Zero, a new credit card offering no fee cash withdrawal available for use at any ATM all over the world.


In July, MTS launched the first tariff plan adaptive for different IoT devices, which includes seven ready-made solutions to suit different types of smart equipment and industry features characteristic to business customers.


In July, MTS and Sistema Capital Asset Management launched MTS Investments, a new investment vehicle, aimed at attracting a wider range of retail investors. The financial portfolio includes four well-diversified mutual investment funds, denominated in ruble and foreign currency, that hold shares and bonds issued by Russian and international companies.


In July, MTS has become the leading partner for Asus in the Russian smartphone market. Our cooperation will include promoting Asus mobile devices and developing new products, as well as exchanging information on technological trends in Russia. The agreement also sets a framework for joint marketing activities, offering our customers the opportunity to acquire Asus devices at even better price.


In July, MTS and MEGOGO, the world’s largest video service for Russian-speaking audiences, launched a new content model for mobile TV users, with single subscription to varied TV and video menu, affordable price and unlimited data traffic delivered across multiple devices.


In August, MTS and Microsoft launched cloud services based on the integrated Microsoft Azure Stack system to offer to corporate clients in Russia. Clients will get access to IaaS and PaaS services as well as unified tools for application development. They will be able to create modern hybrid applications using the capacities of MTS’s local data centers and Microsoft’s global infrastructure.


In August, MTS entered the IT outsourcing market to provide corporate clients with systems integration solutions, network infrastructure and IT systems maintenance, business applications management and other services. MTS will use the expertise of its systems integrator NVision Group and over 5,000 IT specialists across Russia. The services will be provided under SLA (Service Level Agreement) lasting from one to five years.


Excl. impact of new standards
Group Highlights (RUB bln) Q2 2018 Q2 2017 Y-o-Y Change % Q2
Y-o-Y Change %
Revenue 114.3 106.8 7.0% 114.9 7.6%
OIBDA 53.9 44.0 22.5% 46.2 5.1%
margin 47.1% 41.2% 5.9pp 40.2% -1.0pp
Profit attributable to owners of the Company 14.3 14.7 -3.0% 15.0 2.1%
margin 12.5% 13.8% -1.3pp 13.1% -0.7pp


MTS delivered a strong set of Q2 2018 results. Group revenue showed exceptional growth of 7.0% year-over-year and reached RUB 114.3 bln, while Group OIBDA increased by 22.5% year-over-year to RUB 53.9 bln.

Group revenue trends were supported by solid performance in the core Russian market, where MTS continued to benefit from stable competitive environment and price rationality as well as positive trends in data consumption and digital service adoption.

The Group delivered solid results in all markets of operations, and their stronger contribution to consolidated revenue. Sales of goods also continue to support overall Group revenue performance, as sales were particularly robust in Q2 due to increasing demand for advanced smartphones.

The adoption of new IFRS standards had a slightly negative effect on revenue, but boosted OIBDA improvement by an additional RUB 7.7 bln. Meanwhile, on a relative basis, OIBDA showed an impressive 5.1% year-over-year increase driven by strong top-line performance in Russia and Ukraine. OIBDA performance was suppressed mostly by higher advertising and marketing expenses in the reporting period.

The Group OIBDA margin rose to 47.1% under new IFRS standards.

MTS finished Q2 2018 with slightly lower Group net profit compared to Q2 2017. The year-over-year decrease of 3.0% was mostly attributable to the adoption of new IFRS standards.

Group OIBDA Factor Analysis (RUB bln) [7]
(see the graph at PDF doc attached)

Group Net Profit Factor Analysis (RUB bln) [7]
(see the graph at PDF doc attached)


Debt & Liquidity (RUB bln) [8] As of
June 30, 2018
As of
March 31, 2018
Current portion of LT debt 60.2 72.5
LT debt 250.3 218.9
Total debt 310.5 291.5
Cash and cash equivalents 57.3 56.9
ST investments 53.0 26.4
LT deposits 0.1
SWAPs 5.0 2.9
Effects of hedging of non-ruble denominated debt 0.7 1.2
Net debt 194.5 204.1

By the end of Q2, total debt stood at RUB 310.5 bln (excluding debt issuance costs). During the reporting period, MTS issued RUB 6.8 bln exchange-traded bond through a secondary placement with a coupon rate of 6.85%; repurchased RUB 7.4 bln and placed commercial bonds in the amount of RUB 750 mln using blockchain smart contracts.

MTS continued to further optimize its debt portfolio. In Q2 2018, the Group signed two loan agreements for a total amount of RUB 50 bln with VTB Bank, as well as reduced interest rates and increased maturity of two existing loans for a total amount of RUB 35 bln with Sberbank.

MTS’s maturity profile is consistent with its aim to maintain sufficient resources to handle its financial obligations, while simultaneously investing in its business, realizing potential M&A opportunities as ensuring a stable return to shareholders.

Debt Repayment Schedule (RUB bln)
(see the graph at PDF doc attached)

The Net debt to LTM Adjusted OIBDA ratio [9] remained unchanged at a comfortable level of 1.1x.

Net debt to LTM Adjusted OIBDA ratio
(see the graph at PDF doc attached)

Non-ruble debt comprised roughly 15% of the Group’s gross debt, which largely consisted of two outstanding Eurobonds due in 2020 and 2023. MTS executes a prudent approach to hedging against a weaker ruble with all bilateral loans almost fully hedged.

Gross/Net debt structure by currency [10]
(see the graph at PDF doc attached)

Weighted average interest rates (as of June 30, 2018)
(see the graph at PDF doc attached)

As of June 30, 2018, the weighted average interest rate decreased to 8.1% since the end of Q1 as a result of MTS’s debt portfolio optimization.

(see the graph at PDF doc attached)

In June, the AGM approved a payment of dividends in the amount of RUB 23.4 per ordinary share (RUB 46.8 per ADS), or in total RUB 46.8 bln (RUB 46,762,117,225) based on the full-year 2017 financial results.

In July, the Board of Directors proposed a payment of semi-annual dividends of RUB 2.6 per ordinary share (RUB 5.2 per ADS), or in total of RUB 5.2 billion (RUB 5,195,790,802.80), based on H1 2018 financial results with a record date of October 9, 2018.

In total, in calendar year of 2018, MTS intends to pay RUB 26.0 per ordinary share (RUB 52 per ADS), in line with the last couple of years.

On July 2, 2018, MTS launched a new program to repurchase its shares and ADSs for an amount of up to RUB 30 bln over two years. This includes funds, which may be used for purchasing shares from Sistema Finance in accordance with previous repurchase programs.

Cash CAPEX Breakdown (RUB bln) For the quarter ending June 30, 2018 For the quarter ending June 30, 2017
Russia 15.5 12.5
as % of revenue 14.6% 12.7%
Ukraine [11] 2.0 2.5
as % of revenue 26.8% 40.4%
Armenia 0.1 0.2
as % of revenue 4.4% 11.7%
Turkmenistan 0.05
as % of revenue 4.5%
Group CAPEX 11 17.6 15.3
as % of revenue 15.4% 14.3%

In Q2 2018, capital expenditures reached RUB 17.6 bln with CAPEX/Revenue ratio 15.4%. In total, the Company spent RUB 34.2 bln in H1 2018, excluding purchases of licenses. Investments grew in Russia as the Company continued its network construction with focus on better 4G coverage. In total, in Q2 2018, the Group built over 6,000 base stations, more than half of which were 4G base stations. The network construction was carried out throughout the territory of Russia, most actively in Moscow and Moscow region, Primorsky krai, Saint-Petersburg and Leningrad region, Tatarstan and Novosibirsky region.

MTS’ well-balanced investment approach allows the Company to maintain the most capable networks in all of its markets of operation.

Cash Flow (RUB bln) For the first half of 2018 For the first half of 2017
Net cash provided by operating activities 70.1 64.9
Purchases of property, plant and equipment (27.8) (19.6)
Purchases of intangible assets[12] (6.5) (6.9)
Cost to obtain and fulfill contracts (2.1)
Proceeds from sale of property, plant and equipment 2.3 2.5
Investments in associates (2.1) (0.3)
Acquisition of subsidiaries (3.1)
Free cash flow 30.8 40.6

Free cash flow decreased to RUB 30.8 bln in H1 2018 from RUB 40.6 bln in H1 2017. The acquisition of several subsidiaries (RUB 3.1 bln), investments in OZON (RUB 2.1 bln) and higher CAPEX related to network construction resulted in a 24% downgrade to free cash flow.


Excl. impact of new standards
Russia Highlights (RUB bln) Q2 2018 Q2 2017 Y-o-Y Change % Q2
Y-o-Y Change %
Revenue [13] 106.4 99.0 7.4% 106.9 7.9%
mobile 78.4 75.1 4.4% 78.8 5.0%
fixed 15.2 15.2 0.2% 15.2 0.2%
integrated services 1.5 1.3 20.3% 1.5 20.3%
other services 0.2 n/a 0.2 n/a
sales of goods 14.1 10.1 40.2% 14.1 40.2%
OIBDA 51.1 42.1 21.4% 44.2 5.1%
margin 48.0% 42.5% 5.5pp 41.4% -1.1pp
Net profit 14.7 14.8 -0.6% 15.5 5.0%
margin 13.8% 14.9% -1.1pp 14.5% -0.4pp

MTS continued its strong performance in Q2 2018, as Russia Revenue increased by 7.4% year-over-year to RUB 106.4 bln driven by an increase in mobile service revenue and a growth in sales of goods of 40.2% year-over-year. All other segments – fixed-line and integrated services – also demonstrated positive dynamics.

Russia OIBDA grew 21.4% in Q2 2018 to RUB 51.1 bln mainly driven by revenue growth. Strong consumption of data and other higher-margin products drove profitability, leading to Russia OIBDA margin of 48.0%.

MTS’ mobile business delivered a strong performance with a 4.4% year-over-year revenue growth, reflecting growing data usage and overall continuous strong trends in Russian home market.

By the end of June 2018, the number of subscribers in Russia stabilized at 78.1 mln.

MTS’ fixed business showed a modest revenue growth of 0.2% year-over-year as a decrease in the fixed-telephony segment was offset by an increase in fixed broadband and pay-TV segments supported by customer growth.

Fixed-line revenue
(RUB bln)
Q2 2018 Q2 2017 Change
Total 15.2 15.2 0.2%
B2C 7.7 7.5 2.5%
B2B+B2G+B2O 7.5 7.7 -2.1%

According to internal estimates, the Company’s B2C broadband and pay-tv market shares in Moscow continued to grow and reached 36.0% and 40.9% respectively by the end of Q2 2018. The number of GPON users also grew to 1.89 mln as MGTS continued to benefit from its market-leading FTTH GPON network.

Revenue from MTS’ integration business in Q2 2018 increased to RUB 1.5 bln.

Revenue contribution from other services – e-ticketing operators and cybersport club – was mainly in line with the previous quarter.

Compared with Q2 2017, sales of goods rose by 40.2% year-over-year driven by encouraging sales of handsets and accessories. Overall, Russian smartphone market continued to grow supported by sustained demand on advanced smartphones with high quality camera, contactless payment and user recognition functions. According to MTS estimates, in total, 6.2 mln smartphones for RUB 95 bln were sold in Russia in Q2 2018. Apple, Samsung and Huawei continued to dominate in the market.

In MTS Retail, sales were in line with the overall market trends. Smartphones priced between RUB 30,000 – 40,000 continued to be the fastest growing category. Sales growth was supported by the increased product range, in particular, a more diverse offering from Chinese brands. Available credits, installment payment option, trade-in and MTS cashback program also stimulated mobile handsets sales, which increased by 32.7% year-over-year to RUB 12.3 bln. Device gross margin reached 10.5%.

Handsets and Accessories Sales (RUB bln) and Gross Margin (%)
(see the graph at PDF doc attached)

In Q2 2018, the number of stores in MTS Retail remained unchanged.

MTS Retail (# of stores at the end of the period) [14]
(see the graph at PDF doc attached)

MTS maintained its leadership in e-commerce in Russia in 2017. According to Data Insight E-Commerce Index TOP-100 2017, was the largest among operator’s online shops in terms of online sales. In Q2 2018, MTS online sales reached RUB 1.8 bln, up 27.5% year-over-year.

The key indicators of the telecom industry development – smartphone penetration and mobile internet penetration – continued to grow at MTS and reached 67.4% and 55.4% respectively by the end of Q2 2018.

In cooperation with MTS Bank, the Group further improved its financial services. In June, MTS and MTS Bank presented a new joint credit card MTS Money Zero, featuring no fee cash withdrawal available for use at any ATM all over the world. As a result, the joint portfolio of bank cards currently includes MTS Money Zero, MTS Smart Money and MTS Money Weekend. By the end of Q2, the number of total MTS Money customers reached 4.8 mln, while total credit portfolio exceeded RUB 18.5 bln.

MTS continued to witness the growing popularity of its My MTS self-care app. The number of 1-month users reached 12.0 mln. The recent improvement of My MTS functionality includes costs online monitoring and integration of the services such as MTS Money, MTS Cashback and e-ticketing.

1-month active users of My MTS app (mln)
(see the graph at PDF doc attached)


Excl. impact of new standards
Ukraine Highlights (UAH bln) Q2 2018 Q2 2017 Y-o-Y Change % Q2
Y-o-Y Change %
Revenue 3.1 2.9 7.5% 3.2 8.7%
OIBDA 1.7 1.3 35.8% 1.5 16.5%
margin 54.9% 43.5% 11.4pp 46.6% 3.1pp
Net profit 0.5 0.5 3.2% 0.6 12.0%
margin 17.3% 18.0% -0.7pp 18.6% 0.6pp

In Ukraine, the Group continued to witness positive revenue trend (7.5% year-over-year) mainly driven by data consumption growth supported by the 3G and 4G network roll-out as well as subscriber migration to Voice & Data tariff plans.

New IFRS standards positively impacted OIBDA, which increased to UAH 1.7 bln in Q2 2018. On like-for-like basis, excluding the impact of new accounting standards, OIBDA increased by 16.5% year-over-year on the back of the top-line growth. OIBDA margin improved to 54.9% vs. 43.5% in Q2 2017.

By the end of the reporting quarter, 3G coverage reached 82% by population. Following the acquisition of 4G licensees in H1 2018, the Group introduced 4G network in 2.6 GHz bandwidth in April and in 1.8 GHz bandwidth in July. By the end of Q2 2018, 4G network covered 13 cities and 35 smaller residential areas in Ukraine.

In Q2 2018, Group witnessed a decrease in subscribers by 2.6% year-over-year to 20.3 mln.


Excl. impact of new standards
Armenia Highlights (AMD bln) Q2 2018 Q2 2017 Y-o-Y Change % Q2
Y-o-Y Change %
Revenue 14.3 14.0 1.8% 14.3 1.8%
OIBDA 6.4 6.3 0.9% 5.8 -8.3%
margin 44.8% 45.3% -0.5pp 40.8% -4.5pp
Net loss -1.9 -0.1 n/a -1.9 n/a
margin n/a n/a n/a n/a n/a

In Armenia, in Q2 2018, revenue accelerated slightly, to 1.8% year-over-year, which was underpinned primarily by data consumption growth on the back of growing penetration of Voice & Data tariff plans and strong sales of handsets.

OIBDA increased by 0.9% year-over-year to AMD

6.4 bln as a result of adoption of new IFRS standards. On like-for-like basis, excluding the impact of new accounting standards, OIBDA showed a negative dynamics due to additional bonuses accrued in the reporting period. The OIBDA margin reached 44.8%.

Armenia maintained its subscriber base at 2.1 mln.

Excl. impact of new standards
Belarus Highlights (BYN mln) Q2 2018 Q2 2017 Y-o-Y Change % Q2
Y-o-Y Change %
Revenue 212.9 183.8 15.9% 216.5 17.8%
OIBDA 119.8 87.1 37.6% 101.3 16.4%
margin 56.3% 47.4% 8.9pp 46.8% -0.6pp
Net profit 71.7 48.0 49.4% 71.3 48.7%
margin 33.7% 26.1% 7.6pp 32.9% 6.8pp

In Belarus, the Group continued to strengthen its leadership position in terms of revenue and subscribers. In Q2 2018, Revenue grew by 15.9% year-over-year to BYN 212.9 mln, driven by continued growth in usage of data and value-added services. In May, tariff prices in Belarus increased on average by 3%. Strong sales of handsets and accessories were also supported by the launch of a two-year installment payment option.

OIBDA showed a solid double-digit year-over-year growth to BYN 119.8 mln on the back of revenue increase which in turn led to an OIBDA margin of 56.3%.

The subscriber base grew to 5.3 mln, supported by further 4G rollout in Belarus.


MTS’s financial performance will be impacted by new IFRS standards in 2018:

– In January 2014, IFRS 9 and 15 were issued to respectively address accounting for financial instruments and establish principles in recognizing revenue from contracts with customers. These standards came into effect from January 1st, 2018.

– In January 2016, IFRS 16 was issued to provide investors with greater clarity regarding the accounting for leases. Although this new standard is effective from January 1st, 2019, MTS has elected to adopt this standard early.

– Subsequently in 2018, MTS applied these new standards to its FY 2018 results beginning with Q1 2018 and provide the market 2018 results excluding the impact of IFRS standards for the sake of transparency and comparability with the prior periods.

Group Revenue:

For FY 2018, MTS forecasts 2-4% revenue growth, based on the following factors:

– Rising data consumption and weaker voice usage, due to voice-data substitution and data adoption;

– Competitive dynamics in distribution and reduced SIM-card sales in Russia;

– Expected impact of internal roaming cancellation in Russia;

– Increased sales of handsets in Russia;

– Continued growth in UAH-denominated revenues in Ukraine; and

– Service revenues in other foreign subsidiaries and currency volatility in relation to the Russian ruble.

Group OIBDA:

MTS anticipates that the adoption of new IFRS standards will increase OIBDA by an estimated at least RUB 25 bln in 2018. Excluding the impact of new IFRS standards, MTS anticipates ~ 2% increase for FY 2018 Group OIBDA due to the following factors:

– Competitive factors and on-going uncertainty over potential optimization of retail distribution;

– Anticipated increases in labor costs;

– Expected rise in spectrum costs in Russia;

– Market sentiment and the prospective growth in usage of high-value products like roaming;

– Developments in foreign subsidiaries; and

– Macroeconomic developments and currency volatility throughout our markets of operation.

Group CAPEX:

FY2018 – FY 2019 CAPEX spending estimated to be RUB 160 bln, due to a number of factors:

– Partial investments to comply with anti-terror law in Russia;

– Further incremental improvements and enhancements to LTE networks;

– Implementation of infrastructure and spectrum sharing projects within Russia;

– Roll-out of LTE services in Ukraine;

– Evolution of commercial 5G solutions and introduction into Russian market; and

– Continued investments in digital products and services.


IFRS 9, Financial Instruments.

IFRS 9 regulates the classification and measurement of financial assets and liabilities and requires certain additional disclosures. The primary changes relate to the assessment of hedging arrangements and provisioning for potential future credit losses on financial assets as well as recognition of modification gain or loss for all revisions of estimated payments or receipts, including changes in cash flows arising from a modification or exchange of a financial liability, that does not result in its derecognition.

IFRS 15, Revenue from Contracts with Customers.

This standard provides a single, principles-based five-step model for the determination and recognition of revenue to be applied to all contracts with customers. It replaced the existing standards IAS 18, Revenue, and IAS 11, Construction Contracts. The core principle of IFRS 15 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Under the standard, an entity recognizes revenue when (or as) a performance obligation is satisfied, i. e. when “control” of the goods or services underlying the particular performance obligation is transferred to the customer. Far more prescriptive guidance has been added in IFRS 15 to deal with specific scenarios than exists in the current guidance. The main effect of the standard on the Group’s consolidated financial statements related to the deferral of certain incremental costs incurred in acquiring or fulfilling a contract with a customer. Such contract costs are amortized over the period of benefit.

IFRS 16, Leases.

This standard principally requires lessees to recognize assets and liabilities for all leases and to present the rights and obligations associated with these leases in the statement of financial position. The standard also includes new provisions on the definition of a lease and its presentation, on disclosures in the notes, and on sale and leaseback transactions.


The conference call will start today at:

Moscow: 18:00
London: 16:00
New York: 11:00

To take part in the conference call, please dial one of the following telephone numbers and quote the confirmation code, 13591738#

From Russia:

+7 495 646 93 15 (Local access)
8 800 500 98 63 (Toll free)

From the UK:

+44 20 7194 3759 (Local access)
0800 376 6183 (Toll free)

From the US:

+1 646 722 4916 (Local access)
1 844 286 0643 (Toll free)

The webcast will also be available at:

A replay of the conference call will be available for ten days on the following telephone numbers:

From Russia: +7 495 249 16 71 (Local access)
From the UK: +44 20 3364 5147 (Local access)
From the US: +1 646 722 4969 (Local access)

Replay pass code: 418780925#

This press release provides a summary of the key financial and operating indicators for the period ended June 30, 2018. For full disclosure materials, please visit


Investor Relations Department
Mobile TeleSystems PJSC

Tel: +7 495 223 2025

Learn more about MTS. Visit the official blog of the Investor Relations Department at and follow us on Twitter: @MTS_IR


Attachment A

Non-IFRS financial measures. This presentation includes financial information prepared in accordance with International Financial Reporting Standards, or IFRS, as well as other financial measures referred to as non-IFRS. The non-IFRS financial measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with IFRS. Due to the rounding and translation practices, Russian ruble and functional currency margins, as well as other non-IFRS financial measures, may differ.

Operating Income Before Depreciation and Amortization (OIBDA) and OIBDA margin. OIBDA represents operating income before depreciation and amortization. OIBDA margin is defined as OIBDA as a percentage of our net revenues. OIBDA may not be similar to OIBDA measures of other companies, is not a measurement under IFRS and should be considered in addition to, but not as a substitute for, the information contained in our consolidated statement of profit or loss. We believe that OIBDA provides useful information to investors because it is an indicator of the strength and performance of our ongoing business operations, including our ability to fund discretionary spending such as capital expenditures, acquisitions of mobile operators and other investments and our ability to incur and service debt. While depreciation and amortization are considered operating costs under IFRS, these expenses primarily represent the non-cash current period allocation of costs associated with long-lived assets acquired or constructed in prior periods. Our OIBDA calculation is commonly used as one of the bases for investors, analysts and credit rating agencies to evaluate and compare the periodic and future operating performance and value of companies within the wireless telecommunications industry. We use the term Adjusted for OIBDA and operating profit where there were items that do not reflect underlying operations that were excluded. OIBDA and Adjusted OIBDA can be reconciled to our consolidated statements of profit or loss as follows:

Group (RUB bln) Q2’17 Q3’17 Q4’17 Q1’18 Q2’18
Operating profit 23.9 27.6 23.0 26.8 27.6
Add: D&A 20.1 20.0 19.6 25.3 26.3
Loss from impairment of non-current assets 1.1 2.6
Adjusted OIBDA 44.0 48.8 45.2 52.1 53.9
Russia (RUB bln) Q2’17 Q3’17 Q4’17 Q1’18 Q2’18
Operating profit 24.1 28.8 25.6 26.8 27.7
Add: D&A 17.9 17.8 17.5 22.8 23.4
Loss from impairment of non-current assets 0.6
Adjusted OIBDA 42.1 46.6 43.7 49.6 51.1
Ukraine (RUB bln) Q2’17 Q3’17 Q4’17 Q1’18 Q2’18
Operating profit 1.2 1.2 1.5 1.2 1.8
Add: D&A 1.5 1.6 1.5 2.0 2.3
OIBDA 2.7 2.8 3.0 3.2 4.1
Armenia (RUB mln) Q2’17 Q3’17 Q4’17 Q1’18 Q2’18
Operating profit 222 337 271 183 150
Add: D&A 528 558 584 589 670
OIBDA 750 894 856 772 821
Turkmenistan (RUB mln) Q2’17 Q3’17 Q4’17 Q1’18 Q2’18
Operating profit/(loss) 221 (1,172) (2,412) (136) (142)
Add: D&A 181 188 37
Loss from impairment of non-current assets 1,146 2,057
Adjusted OIBDA 401 163 (317) (136) (142)

OIBDA margin can be reconciled to our operating margin as follows:

Group Q2’17 Q3’17 Q4’17 Q1’18 Q2’18
Operating margin 22.3% 24.1% 19.6% 24.8% 24.1%
Add: D&A 18.8% 17.5% 16.8% 23.5% 23.0%
Loss from impairment of non-current assets 1.0% 2.3%
Adjusted OIBDA margin 41.2% 42.6% 38.7% 48.3% 47.1%
Russia Q2’17 Q3’17 Q4’17 Q1’18 Q2’18
Operating margin 24.4% 27.1% 23.3% 26.5% 26.1%
Add: D&A 18.1% 16.7% 16.0% 22.6% 22.0%
Loss from impairment of non-current assets 0.5%
Adjusted OIBDA margin 42.5% 43.8% 39.8% 49.1% 48.0%
Ukraine Q2’17 Q3’17 Q4’17 Q1’18 Q2’18
Operating margin 19.4% 18.5% 22.1% 20.1% 23.8%
Add: D&A 24.1% 22.9% 21.5% 32.6% 31.1%
OIBDA margin 43.5% 41.4% 43.7% 52.8% 54.9%
Armenia Q2’17 Q3’17 Q4’17 Q1’18 Q2’18
Operating margin 13.4% 17.8% 15.5% 11.4% 8.2%
Add: D&A 31.9% 29.5% 33.3% 36.5% 36.7%
OIBDA margin 45.3% 47.2% 48.8% 47.9% 44.9%
Turkmenistan Q2’17 Q3’17 Q4’17 Q1’18 Q2’18
Operating margin 19.5% n/a n/a n/a n/a
Add: D&A 16.0% 18.1% n/a n/a n/a
Loss from impairment of non-current assets 110.2%
Adjusted OIBDA margin 35.5% 15.7% n/a n/a n/a


Attachment B


Total debt. Total debt represents short-term and long-term debt excluding lease obligations and debt issuance costs.

Net debt. Net debt represents total debt less cash and cash equivalents, short-term investments, long-term deposits, SWAPs and currency hedging.

Subscriber. We define a “subscriber” as an organization or individual, whose SIM-card:

– shows traffic-generating activity or

– accrues a balance for services rendered or

– is replenished or topped off

over the course of any three-month period, inclusive within the reporting period, and was not blocked at the end of the period.

As of June 30, 2018 AND As of December 31, 2017
(Amounts in millions of RUB)
As of June 30, As of December 31,
2018 2017
Property, plant and equipment 256,472 263,063
Investment property 732 407
Right-of-use assets 150,211
Intangible assets 129,582 113,678
Investments in associates 11,432 9,452
Deferred tax assets 6,509 5,545
Other non-current non-financial assets 1,583 2,048
Other investments 2,073 1,953
Accounts receivable (related parties) 1,127 2
Other non-current financial assets 4,623 8,890
Total non-current assets 564,344 405,038
Inventories 17,307 9,995
Trade and other receivables 30,001 28,017
Accounts receivable (related parties) 12,469 11,358
Short-term investments 52,970 50,757
VAT receivable 9,060 7,165
Income tax assets 2,594 2,838
Assets held for sale 1,461 1,276
Advances paid and prepaid expenses and other current assets 4,694 4,040
Cash and cash equivalents 57,292 30,586
Total current assets 187,848 146,032
Total assets 752,192 551,070
Equity attributable to owners of the Company 109,268 120,126
Non-controlling interests 3,242 4,079
Total equity 112,510 124,205
Borrowings 249,836 228,041
Lease obligations 141,472 11,055
Deferred tax liabilities 23,856 23,773
Provisions 3,529 2,309
Other non-current financial liabilities 770 1,048
Other non-current non-financial liabilities 2,573 3,968
Total non-current liabilities 422,036 270,194
Borrowings 59,973 63,673
Lease obligations 15,910 801
Provisions 7,890 9,852
Trade and other payables 93,160 47,314
Accounts payable (related parties) 1,940 1,102
Income tax liabilities 1,853 1,150
Other current financial liabilities 2,667 3,036
Other current non-financial and contract liabilities 34,253 29,743
Total current liabilities 217,646 156,671
Total equity and liabilities 752,192 551,070
(Amounts in millions of RUB except per share amount)
Six months ended Six months ended Three months ended Three months ended
June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017
Service revenue 195,062 190,168 100,236 96,725
Sales of goods 27,209 21,353 14,110 10,112
222,271 211,521 114,346 106,837
Cost of services (51,915) (60,961) (26,985) (30,948)
Cost of goods (24,799) (18,854) (13,360) (9,293)
Selling, general and administrative expenses (41,549) (46,685) (21,927) (23,421)
Depreciation and amortization (51,608) (40,245) (26,286) (20,115)
Other operating income / (expenses) 170 (695) 728 87
Operating share of the profit of associates 1,835 1,495 1,085 714
Operating profit 54,405 45,576 27,601 23,861
Currency exchange (loss)/gains (1,097) 1,181 (1,501) 270
Other (expenses)/income:
Finance income 2,422 2,349 1,251 1,377
Finance costs (18,680) (13,569) (9,110) (7,124)
Other income / (expenses) 1,500 (616) 30 263
Total other expenses, net (14,758) (11,836) (7,829) (5,484)
Profit before tax 38,550 34,921 18,271 18,647
Income tax expense (8,597) (7,456) (3,847) (3,778)
Profit for the period 29,953 27,465 14,424 14,869
Income for the period attributable to non-controlling interests (249) (255) (142) (140)
Profit for the period attributable to owners of the Company 29,704 27,210 14,282 14,729
Other comprehensive (loss)/income
Items that will not be reclassified subsequently to profit or loss
Unrecognised actuarial loss 228 228
Items that may be reclassified subsequently to profit or loss
Exchange differences on translating foreign operations 5,551 (592) 4,353 2,526
Net fair value (loss) / gain on financial instruments (580) 869 811 601
Other comprehensive income for the period 5,199 277 5,392 3,127
Total comprehensive income for the period 35,152 27,742 19,816 17,996
Less comprehensive income for the period attributable to the noncontrolling interests (249) (255) (142) (140)
Comprehensive income for the period attributable to owners of the Company 34,903 27,487 19,674 17,856
Weighted average number of common shares outstanding, in thousands – basic 1,890,479 1,966,820 1,886,217 1,955,245
Earnings per share attributable to the Group – basiс: 15.51 13.83 7.57 7.52
Weighted average number of common shares outstanding, in thousands – diluted 1,893,081 1,968,880 1,888,336 1,957,012
Earnings per share attributable to the Group – diluted: 15.48 13.82 7.56 7.52
(Amounts in millions of RUB)
Six months ended Six months ended
June 30, 2018 June 30, 2017
Profit for the period 29,953 27,465
Adjustments for:
Depreciation and amortization 51,608 40,245
Finance income (2,422) (2,349)
Finance costs 18,680 13,569
Income tax expense 8,597 7,456
Currency exchange loss / (gain) 1,097 (1,181)
Change in fair value of financial instruments (2,046) 104
Amortization of deferred connection fees (1,078) (446)
Share of the profit of associates (1,756) (1,167)
Inventory obsolescence expense 1,568 47
Allowance for doubtful accounts 1,445 1,475
Change in provisions 7,913 7,148
Other non-cash items (797) (985)
Movements in operating assets and liabilities:
Increase in trade and other receivables and contract assets (2,357) (2,092)
(Increase)/Decrease in inventory (8,812) 3,037
Increase in VAT receivable (1,804) (1,097)
Decrease in advances paid and prepaid expenses 482 1,211
Decrease in trade and other payables, contract liabilities and other liabilities (9,733) (8,104)
Dividends received 1,674 1,486
Income taxes paid (9,772) (10,484)
Interest received 5,919 875
Interest paid, net of interest capitalised (18,297) (11,337)
Net cash provided by operating activities 70,062 64,876
Acquisition of subsidiary, net of cash acquired (3,093)
Purchases of property, plant and equipment (27,753) (19,566)
Purchases of other intangible assets (6,484) (6,862)
Cost to obtain and fulfill contracts (2,085)
Purchases of 4G licenses in Ukraine (5,527)
Proceeds from sale of property, plant and equipment and assets held for sale 2,289 2,463
Purchases of short-term and other investments (29,404) (32,794)
Proceeds from sale of short-term and other investments 24,112 4,017
Investments in associates (2,101) (320)
Cash proceeds related to SWAP contracts 49
Repayment of loans (19,170) (24,682)
Proceeds from loans 20,000 20,000
Repayment of notes (8,305)
Proceeds from issuance of notes 27,550 20,000
Notes and debt issuance cost (39) (29)
Finance lease obligation principal (6,844) (574)
Dividends paid (2)
Cash outflow under credit guarantee agreement related to foreign-currency hedge (981) (901)
Repurchase of own shares (7,660) (9,414)
Other financing activities 123 (8)
Net cash provided by financing activities 4,672 4,392
Effect of exchange rate changes on cash and cash equivalents 1,969 (404)
CASH AND CASH EQUIVALENTS, at beginning of the period 30,586 18,470
CASH AND CASH EQUIVALENTS, at end of the period 57,292 34,272

[1] Here and onwards in this document under new standards we imply IFRS 9, 15 and 16

[2] Excluding costs of RUB 4.2 bln related to the purchase of 4G licenses in Ukraine in Q2 2018

[3] Excluding lease obligations

[4] Adjusted OIBDA doesn’t include a loss from impairment of non-current assets of RUB 3.8 bln for FY 2017

[5] Including CDMA subscribers

[6] MTS owns a 49% stake in Mobile TeleSystems LLC, a mobile operator in Belarus, which is not consolidated

[7] Totals may differ due to rounding

[8] Excluding lease obligations

[9] Excluding effect of new standards

[10] Including FOREX hedging in the amount of USD 178.8 mln as of June 30, 2018

[11] Excluding costs of RUB 4.2 bln related to the purchase of 4G licenses in Ukraine in Q2 2018

[12] Excluding costs of RUB 5.5 bln related to the purchase of 4G licenses in H1 2018

[13] Net of eliminations

[14] Including franchises

SOURCE: Mobile TeleSystems PJSC

ReleaseID: 510461