Tattelecom: profit up a third, dividend yield still double-digit

On August 25, Tattelecom released its results for the first half of 2026: revenue grew 17.6% to RUB 13.4 billion, EBITDA by 24.5%, and net profit by 33.1%. In this review, we examine what drives these figures and why the dividend yield remains above 10%.

Key takeaways

— Revenue for the half-year grew 17.6% to RUB 13.4 billion, driven by subscriber base growth and additional services

— EBITDA for the half-year increased 24.5%, margin expanded from 27.2% to 28.8% amid moderate operating expense growth

— Net profit for the half-year jumped 33.1%, margin rose from 17.1% to 19.3%

— Debt burden remains negative: net debt at minus RUB 939.9 million, ratio to EBITDA over 12 months at minus 0.49

— Trailing dividend yield is 9.74%, our next payout estimate is RUB 0.06 per share, implying a forward yield of 10.2%

— The company trades at P/E of 4.7 and EV/EBITDA of 5.6 – notably below its three-year averages

— Return on equity is 17.6%, supporting a high dividend level

Key figures, RUB bn

Revenue for the half-year grew 17.6% to RUB 13.4 billion, driven by subscriber base growth and additional services

In the first half of 2026, Tattelecom's revenue reached RUB 13.4 billion, up 17.6% year-on-year. The main contribution came from subscriber growth and increased sales of additional services, including digital services and video surveillance.

Growth accelerated compared to previous periods, indicating sustained demand for telecom services in the region. The company continues to expand its network and increase penetration in the B2B segment.

EBITDA for the half-year increased 24.5%, margin expanded from 27.2% to 28.8% amid moderate operating expense growth

EBITDA for the first half-year grew 24.5% year-on-year, with EBITDA margin expanding from 27.2% to 28.8%. The margin improvement was driven by revenue growth outpacing operating expenses, which increased moderately.

Cost containment on personnel and network maintenance allowed the company to improve operational efficiency. This is a sustainable trend that is likely to continue in the second half.

Net profit for the half-year jumped 33.1%, margin rose from 17.1% to 19.3%

Net profit for the first half-year increased 33.1% year-on-year, with net margin rising from 17.1% to 19.3%. Profit growth was driven by operational results and lower interest expenses thanks to negative net debt.

The company continues to generate high profits, supporting dividend payments. Over the last 12 months, net profit reached RUB 2,477.4 million, corresponding to a return on equity of 17.6%.

Debt burden remains negative: net debt at minus RUB 939.9 million, ratio to EBITDA over 12 months at minus 0.49

At the end of the first half-year, net debt stood at minus RUB 939.9 million, meaning cash exceeded debt. The net debt to EBITDA ratio over the last 12 months is minus 0.49, indicating financial stability.

Over the last 12 months, net debt decreased by RUB 1.4 billion, reflecting strong cash flow. The company has no liquidity issues and can finance investments from its own funds.

Trailing dividend yield is 9.74%, our next payout estimate is RUB 0.06 per share, implying a forward yield of 10.2%

Over the last 12 months, the company paid RUB 0.0573 per share, providing a yield of 9.74% at the current market cap of RUB 11,672.6 million. Our model estimates the next payout at RUB 0.06 per share, implying a forward yield of 10.2%.

The payout ratio, by our estimates, is 0.27 of profit, leaving significant room for investment. The fair yield for this issuer is 7.0%, so the current level looks attractive.

The company trades at P/E of 4.7 and EV/EBITDA of 5.6 – notably below its three-year averages

Based on the last 12 months, P/E stands at 4.71 and EV/EBITDA at 5.58. Both multiples are below their three-year averages, indicating undervaluation relative to its own history.

Low multiples are combined with high dividend yield and negative net debt. This makes the shares attractive for income-oriented investors.

Return on equity is 17.6%, supporting a high dividend level

Return on equity over the last 12 months was 17.6%, a high figure for the telecom sector. This provides a solid base for dividend payments.

With a payout ratio of 0.27, the company retains most of its profit for development while still paying dividends with a double-digit yield. This balance looks sustainable.

Valuation on the latest reported figures

Bottom line

Tattelecom reported strong growth in revenue, EBITDA, and net profit for the first half-year, with improved margins. The company maintains negative net debt and pays dividends with a yield of about 10%, which looks attractive given low multiples. However, it is important to watch whether the company can sustain growth rates in the second half, especially amid potential economic slowdown. For shareholders, the key question is the stability of dividend flow while maintaining the investment program.