Mobile TeleSystems (MTS) reported strong financial and operational performance for the fourth quarter and full year 2025, with annual revenue exceeding RUB 800 billion for the first time as the Russian telecom giant expands beyond connectivity into AI, cloud, fintech, and digital services.
MTS Group revenue in the fourth quarter of 2025 increased 16.4 percent year-over-year to RUB 222.5 billion, driven by continued growth in core telecom services and rapidly expanding non-telecom business lines.
MTS Chairman & CEO Inessa Galaktionova said: “We plan to further strengthen our competencies as the most innovative mobile operator and invest more in R&D to accelerate the implementation of future technologies.”
Profitability improves as costs decline
OIBDA rose 18.9 percent to RUB 71.8 billion during the quarter, supported by strong performance from communication services, advertising, and media businesses as well as operational cost optimization.
Net profit jumped sharply to RUB 21.5 billion from RUB 1.4 billion a year earlier. The improvement reflects stronger operating performance and better financial management across business segments.
Operating expenses declined during the quarter as the company implemented cost efficiency initiatives that helped improve margins.
Capital expenditure fell 30.9 percent to RUB 26.4 billion in the fourth quarter as investment activity slowed. For the full year 2025, MTS reported capital expenditure of RUB 120.6 billion.
Subscriber growth and telecom expansion
The company continued to expand its telecom subscriber base in Russia. Mobile subscribers reached 83.4 million, increasing by 1 million year-over-year. The number of Pay-TV users reached 16.3 million, registering growth of 1.2 million. The number of fin-tech customers grew by 1.6 million to reach 19.2 million at the end of December 2025.
Telecom revenue totaled RUB 135.0 billion in the fourth quarter, representing growth of 12.3 percent. Within this segment, B2C mobile services generated RUB 73.0 billion in revenue, up 6.6 percent year-over-year.
Broadband and entertainment services also expanded. Pay-TV subscribers – including satellite, cable, IPTV, and OTT services – rose 7.7 percent to 16.3 million users.
The company also recorded strong growth in broadband services, with the B2C broadband subscriber base increasing 9.1 percent in the quarter. Converged customers combining mobile and home internet services grew 18.5 percent year-over-year.
Non-telecom businesses drive ecosystem strategy
MTS is accelerating its transformation from a traditional telecom operator into a diversified technology ecosystem. Non-telecom businesses now contribute 42 percent of total group revenue.
For the full year 2025, the company reported revenue across multiple verticals:
Telecom services: RUB 502.4 billion
FinTech including MTS Bank: RUB 172.4 billion
AdTech: RUB 70.0 billion
BigTech including cloud and AI services: RUB 63.8 billion
FunTech including KION media services: RUB 29.0 billion
FinTech also expanded rapidly, with the number of customers reaching 19.2 million, an increase of 1.6 million year-over-year.
In the consumer market, personalized digital solutions and subscription services now account for 25.7 percent of B2C revenue under the company’s “Telecom 2.0” strategy.
AI and digital infrastructure investments increase
MTS plans to significantly increase investment in research and development, particularly in artificial intelligence technologies. The company recently launched AI-based IT products for retail and manufacturing industries as well as a deepfake detection system that reportedly achieves 98 percent accuracy.
In the enterprise market, MTS is expanding high-growth technology services. Digital real estate solutions saw revenue double, while video surveillance services grew 93 percent and IoT and vertical solutions increased 60 percent year-over-year.
The company also implemented Russia’s first large-scale deployment of domestically produced LTE base stations in collaboration with IRTEYA.
Debt optimization and financial stability
MTS improved its financial position during the year. Net debt declined to RUB 458.3 billion from RUB 477.1 billion a year earlier.
The company maintained a healthy Net Debt to LTM OIBDA ratio of 1.6. During 2025, MTS placed a record RUB 250 billion in bond issuances to optimize the duration of its debt portfolio.
FASNA SHABEER