MTS Q1 2026: Revenue Growth Decelerates, but Operating Leverage Drives Net Profit Surge
MTS reported Q1 2026 revenue of RUB 201.3 bn (+14.7% YoY), decelerating from the 17.4% YoY growth in H2 2025. EBITDA rose 4.8% YoY to RUB 66.4 bn, while net profit (to MTS holders) surged 46.4% YoY to RUB 7.2 bn, driven by operating leverage and lower interest costs.
Key Metrics YoY Growth (%)
What Drove the Result
Telecom revenue (+14.7% YoY) remained the core driver, with B2O interconnect (+33.7%) and B2B/G (+15.8%) outpacing B2C mobile (+9.5%). Fintech revenue grew 18.4% YoY, supported by high interest rates and Fintech ARR growth. OIBDA margin expanded 1.0 pp to 37.1%, while operating profit grew 28.7% YoY — the fastest P&L line — reflecting cost discipline and scale benefits. Net debt/LTM OIBDA improved to 1.6x from 1.8x a year ago, though net debt rose in absolute terms.
Key Figures (RUB bn)
| Metric | Q1 2025 | Q1 2026 | Change |
|---|---|---|---|
| Revenue | 175.5 | 201.3 | +14.7% |
| EBITDA | 63.3 | 66.4 | +4.8% |
| Operating Profit | 31.9 | 41.0 | +28.7% |
| Net Profit (to MTS holders) | 4.9 | 7.2 | +46.4% |
| Capex | 34.3 | 44.3 | +29.1% |
Outlook
The board recommended a RUB 35/share dividend for FY 2025 (total RUB 69.9 bn), with a record date of 9-Jul-2026. Key watchpoints: sustaining telecom B2O and fintech momentum, managing capex intensity (22% of revenue in Q1), and the trajectory of net debt given recent bond issuances (RUB 60 bn YTD). External MWS revenue (+46% YoY) signals cloud growth, though group-level MWS declined due to internal cannibalisation.