MTS reports strong Q2 results with revenue and profit gains
MTS released its second-quarter financial results, showing a 14.8% rise in revenue to 146.7 billion rubles under IFRS reporting. Operating income before depreciation and amortization (OIBDA) climbed 22.9% year over year to 63.7 billion rubles, while net profit grew by 53.5% to 16.8 billion rubles.
Company leadership attributes the performance to a clear strategic focus on building a digital services ecosystem anchored in a sustainable telecommunications business model.
Vyacheslav Nikolaev, president of MTS, noted that almost half of B2C revenue in the quarter originated from ecosystem customers. He projected accelerated growth in ecosystem customers driven by the expansion of the MTS Premium subscription, integration with the MTS Cashback loyalty program, and new product launches anticipated in the second half of 2023.
Nikolaev also highlighted steady expansion in B2B activities. The executive cited MTS’s market share by customer numbers as reaching 34% in the communications services sector.
Additionally, the AdTech segment posted solid gains in the quarter, rising by more than 46% year over year to 8.5 billion rubles, underscoring the diversified revenue mix.
In commentary about the results, Sergey Suverov, investment strategist at Arikapital Management, described MTS’s performance as “fantastic,” adding that the company is among the most stable in Russia while continuing to grow. Suverov emphasized that fintech, media, and ecosystem expansion reinforce the overall growth trajectory.
Suverov also noted that the company’s debt burden remains at a comfortable level, contributing to reliable, sustainable results.
Trade123’s managing director, Vladimir Rozhankovsky, called the figures “extraordinary” and credited the decision to invest in an ecosystem as a key driver. He observed that two new segments, B2B and B2C, have become major growth catalysts, lifting revenue, net profit, and EBITDA. Rozhankovsky added that customers appear satisfied with participating in the MTS ecosystem and that there is little incentive to switch operators.
Looking ahead, Rozhankovsky warned that while the development path is clear, it remains dependent on continued execution of ecosystem-related initiatives. Industry observers expect the momentum to persist into the next reporting period as the company scales its diversified offerings.
Across market commentary, analysts emphasize MTS’s strategic transformation toward integrated digital services as a defining factor in its resilience and potential upside in the near term.