MTS Group Delivers Double-Digit Profit Growth and Broad Revenue Expansion in 2023
MTS Group posted a 2023 revenue rise of 13.5 percent year over year, reaching 606.0 billion rubles. This milestone comes alongside the company’s quarterly and full-year financial and operating results, underscoring strong execution across its digital ecosystem in the period.
Yuri Kozlov, founder of the Invest or Lose community, noted that the company achieved these results due to solid revenue growth across all business segments. He indicated that the rate of increase surpassed both analyst expectations and market consensus, signaling broad-based momentum for the group.
Specifically, revenue from communication services grew 6.5 percent to 440.1 billion rubles. The expert attributed this uplift to a 2035 government strategy for the development of the communications industry, which was approved late in 2023. The strategy provides operators with greater flexibility to raise prices above the pace of inflation, helping to support margins in a competitive market.
Additionally, the number of MTS ecosystem customers rose 11.9 percent to 15.1 million. Kozlov highlighted that the expansive ecosystem enables higher revenue per customer, with popular offerings such as KION, MTS Music, and Strings driving strong demand among users.
In the business-to-business segment, the group maintained leadership in Russia by leveraging Internet of Things technologies, intelligent communication systems, and services branded as MTS Link and MTS Exolve. This segment expanded by 17 percent on an annual basis, and 2023 events attracted about 30 million participants to the MTS Link platform, illustrating broad engagement across corporate and consumer audiences alike.
Georgy Avedikov, founder of Investocrat, observed that expectations for debt service to dent margins did not materialize, even as interest rates rose. He pointed to the fintech sector as a critical driver of group performance, noting a 33 percent increase in the bank’s personal loan portfolio to 339 billion rubles in 2023, with net profit reaching a record 12.5 billion rubles.
Beyond steady revenue growth, Avedikov emphasized double-digit net profit expansion for the group, citing robust cost control alongside rising core activity revenue. He suggested that customer flows across the ecosystem and its services were a key driver of business expansion, reinforcing the link between user engagement and financial results.
The expert added that Adtech is delivering solid growth, aligned with progress in Telecom and Fintech segments. He observed that revenue rose 47.9 percent year over year in this area, a momentum that could persist into the future as the company continues to integrate its diverse digital offerings and expand its cross-sector presence.
Overall, market observers view MTS as a well-positioned player in Russia’s evolving digital landscape, with continued potential from ecosystem synergies, strategic pricing dynamics, and strong demand for connected services across consumer and business clients. The results reflect a broader trend of digital integration and financial resilience across the group’s core and newer business lines, noted by industry analysts and ecosystem partners alike.