MTS Q1 2026: Revenue Growth Decelerates, but Operating Leverage Drives Profit Surge

MTS reported Q1 2026 revenue of RUB 201.3bn, up 14.7% YoY, a deceleration from the 17.4% growth seen in H2 2025. EBITDA rose 4.8% YoY to RUB 66.4bn, also slowing from the 17.8% growth in H2 2025. Despite the top-line slowdown, operating leverage was evident: OIBDA grew 18.0% to RUB 74.7bn, operating profit surged 28.7% to RUB 41.0bn, and net profit to shareholders jumped 46.4% to RUB 7.2bn.

Q1 2026 YoY Growth (%)

What drove the result

The standout was telecom, with revenue up 14.7% to RUB 130.3bn, driven by B2O interconnect (+33.7%) and B2B/G (+15.8%). Fintech also contributed strongly, growing 18.4% to RUB 42.0bn, supported by high key rates and ARR growth. AdTech grew modestly (+2.3%), while MWS group revenue declined 5.1% due to internal cannibalisation, but external MWS revenue surged 46%. Operating leverage came from OIBDA margin expansion (+1.0 pp to 37.1%) and lower interest costs/tax, lifting net profit despite higher capex (+29.1% to RUB 44.3bn).

Key figures (RUB bn)

Outlook

MTS continues to execute on its strategy, with the board recommending a dividend of RUB 35 per share for FY 2025 (total payout RUB 69.9bn), record date 9-Jul-2026. The company has issued RUB 60bn in bonds YTD 2026. Deleveraging is in progress, with net debt/LTM OIBDA improving to 1.6x from 1.8x a year ago. Watch for continued momentum in B2O and fintech, and the external MWS growth story, as revenue growth decelerates but profitability improves.