(Reuters) – Russia’s largest mobile operator MTS reported Wednesday a 76.2% drop in its first quarter net profit to 3.9 Billion Rupees (62.9 Million), which the company attributed in part to higher interest rates.

MTS indicated in early March, just days after Russia deployed tens to thousands of troops in Ukraine, that there were “current and potentially external factors outside its control” that could impact operations and financial results.

Russia increased interest rates to 20%, following Western sanctions that were unprecedented. Prior to this two rate cuts left the key rate at 14%. MTS stated that profit also suffered from the “revaluation securities in the current macroeconomic climate”.

MTS didn’t provide any forecasts but stated that group revenue rose by 8.5%, to 134.4 billion rubles, and operating income before amortization (OIBDA), was higher at 2% to 56.5 million roubles.

Vyacheslav Nikolaev, President and CEO of the Company, described the results solidly and stated that the company was focused to ensure daily business continuity and maintained its confidence in its ability navigate through challenges.

Moscow-listed MTS shares were 12.8% higher at 1408 GMT. They had jumped more than 20% in the same day that its board recommended a dividend rate of 33.85 rubles per share.

MTS reported that “the previous three-year dividend strategy was concluded at the end 2021.” “Adoption a new dividend plan has been delayed at the moment.”

Nikolaev stated that MTS has high-potential business lines in digital and an enduring core telecoms business, which means it will continue to develop long-term.

MTS, one of the many Russian companies, is developing additional services to its core business. This includes MTS Bank and e-commerce, as well streaming service KION. MTS signed in December a deal with VisionLabs to purchase the biometrics firm VisionLabs.

Kommersant last month reported, citing sources that MTS was forced to postpone indefinitely the sale of its tower assets. However, MTS stated it continued to examine different options and was still in touch with potential investors.

($1 = 62.0000 roubles)