MTS net profit up 8.3x in H1 to RUB 74bn on revenue growth and margin expansion

In H1 2026, MTS revenue grew 11.8% YoY, EBITDA 17.1%, and net profit 8.3x to RUB 74.0bn. EBITDA margin reached 38.4% versus 36.7% a year earlier, net margin 17.9% versus 2.4%. Key drivers were growth in telecom and fintech, plus operating leverage.

Key figures, RUB bn

What the report showed and what's behind it

In H1 2026, MTS revenue reached RUB 414.7bn, up 11.8% YoY. In Q2 2026, revenue grew 9.2% YoY to RUB 213.5bn, and in Q1 2026 – 14.7% to RUB 201.3bn. The main driver remains the telecom segment, where H1 revenue grew 14.7% to RUB 130.3bn, including B2O (interconnect) – up 33.7% to RUB 22.9bn. Fintech also accelerated: segment revenue for the half-year was RUB 42.0bn (+18.4% YoY).

Quarterly dynamics: revenue, % YoY

Margins and costs

EBITDA margin for H1 2026 was 38.4% versus 36.7% a year earlier, reflecting operating leverage: EBITDA grew 17.1%, outpacing revenue. In Q2 2026, EBITDA was RUB 84.6bn, with margin at 39.6% (calculated). Net profit for the half-year rose 8.3x to RUB 74.0bn, helped by operating profit growth and, likely, lower interest costs and tax burden. In Q2, net profit was RUB 66.9bn – the main contributor to the half-year result.

Debt, cash flow, capex

Net debt at the end of Q2 2026 was RUB 651.9bn, up RUB 29.7bn from the previous reporting date and RUB 98.4bn over the last 12 months. Net debt to EBITDA for the last 12 months is 2.14. Capex in Q2 2026 was RUB 31.6bn, and for H1 – RUB 75.9bn (calculated). Operating cash flow for the last 12 months was RUB 274.4bn.

Valuation and what to watch in the next report

EV/EBITDA for the last 12 months is 3.27, notably below its three-year average of 4.07. P/E for the last 12 months is 3.27, dividend yield for the last 12 months is 15.4%. Return on equity is 132.8%. In the next report, watch net profit dynamics: in Q2 2026 it was RUB 66.9bn, which may be due to one-off factors. Also important is whether revenue growth in telecom and fintech persists, and how leverage evolves.

Valuation on the latest reported figures