The telecommunications and digital services landscape in 2026 is defined by a paradox: high interest rates and tight monetary policy coexisting with an insatiable demand for data and ecosystem integration. On December 1, 2025, Mobile TeleSystems PJSC (MOEX: MTSS)—widely referred to by its ticker and brand MTS—released a comprehensive update following its third-quarter financial results. This MTS Financial Report arrived at a critical juncture for the company as it transitions from a traditional mobile operator into a full-scale digital ecosystem. For investors tracking MTS stock, the data revealed a business model that is not merely surviving macroeconomic headwinds but actively harvesting growth from its AdTech, FinTech, and Media verticals. The following analysis deconstructs the specific drivers of this performance and the long-term implications for the MTS stock price.
The Numerical Stronghold: Deciphering the Revenue and OIBDA Surge
The most striking headline from the MTS Earnings update was the continued double-digit growth in consolidated Group revenue. For the third quarter of 2025, revenue increased by approximately 15.1% year-over-year, following a record-breaking second quarter where revenue surpassed RUB 195 billion. This sustained momentum is a direct result of two factors: the resilience of the core connectivity business and the explosive growth of “non-telecom” revenue streams. Connectivity services, the bedrock of the company, saw steady growth as data consumption per subscriber continued to rise, supported by the ongoing rollout of advanced network infrastructure.
However, the real “delta” in this report came from the Operating Income Before Depreciation and Amortization (OIBDA). Group OIBDA grew by 12.4% year-over-year, reaching approximately RUB 81.7 billion. To understand the significance of this, one must look at the margin compression faced by global peers. MTS managed to expand its OIBDA through rigorous cost optimization and the “ecosystem effect”—where the cost of customer acquisition (CAC) is shared across multiple verticals, such as MTS Bank and MTS Media. The net debt to LTM OIBDA ratio remained healthy at 1.7x, demonstrating that even in a high-rate environment, the company maintains a fortress balance sheet.
The “Ecosystem” revenue now accounts for more than 40% of the Group’s total intake, a milestone that significantly de-risks the company’s dependency on the maturing mobile market. The AdTech vertical, in particular, grew revenue by over 40% in the third quarter, leveraging Big Data to provide hyper-targeted marketing solutions for B2B partners. This shift from a “utility” model to a “technology” model is the primary reason why MTS stock has decoupled from traditional telecom valuation multiples.
FinTech and Media: The Engine of Customer Stickiness
A core pillar of the MTS Financial Report is the performance of MTS Bank. As of Q3 2025, the bank’s retail loan portfolio and commission income have reached all-time highs. The integration of banking services directly into the MTS app has created a closed-loop system where a mobile subscriber is seamlessly converted into a FinTech user. This “stickiness” is evidenced by the “Ecosystem 3.0” metric: customers using three or more services have a 40% lower churn rate than single-service users.
The Media vertical, comprising the KION streaming platform and MTS Live, also contributed significantly to the bottom line. Despite the global slowdown in streaming, KION saw a 28% increase in its subscriber base, driven by a slate of exclusive original content. For investors in MTS stock, this vertical is less about immediate profit and more about data harvesting. The insights gained from what a user watches and where they attend live events feed into the AdTech engine, creating a “flywheel” effect that fuels future revenue.
One area of concern in the report was the impact of interest expenses on net profit. GAAP net profit saw a contraction due to the servicing of floating-rate debt in a high-interest-rate climate. However, management has countered this by pivoting toward fixed-rate instruments and utilizing the strong free cash flow to pay down high-cost obligations. For those evaluating the MTS stock price, this focus on “financial discipline” over aggressive expansion is a welcome sign of maturity.
Strategic Evolution: From Hierarchy to Autonomous Verticals
Perhaps the most forward-looking aspect of the latest MTS Earnings commentary is the progress of the corporate transformation. MTS is restructuring its non-telecom businesses as separate legal entities under the “MTS Web Services” (MWS) banner. This includes MTS Digital, MTS AI, and CloudMTS. The rationale is twofold: to eliminate duplicate administrative costs and to prepare these high-growth verticals for potential independent capital raises or IPOs.
The decision to discontinue “MTS Auto” and “MTS Smart Home” initiatives was also highlighted as a key strategic pivot. By cutting experimental business lines that were not meeting margin targets, MTS is concentrating its R&D budget on high-conviction projects like Artificial Intelligence and B2B digital transformation. This “rationalization” of the portfolio is expected to save the Group approximately RUB 15 billion in annual operating expenses by 2027.
Market expansion is also taking a new form. Rather than geographic expansion, MTS is pursuing “vertical expansion”—becoming the default partner for the digital transformation of enterprise clients. The B2B segment revenue grew by 20% in Q3, fueled by a surge in demand for cybersecurity and cloud-based data sovereignty solutions. This shift positions MTS not just as a service provider, but as a critical infrastructure partner for the regional economy.
Stock Performance and the Technical Outlook
As of January 12, 2026, the MTS stock price is trading at approximately RUB 211.20 on the Moscow Exchange. The stock has shown remarkable resilience throughout 2025, outperforming the broader index by nearly 8%. Following the December 1st update, the stock experienced a “volatility squeeze,” where a dip in price was met with aggressive buying by institutional players who view the current P/E ratio as undervalued relative to the company’s tech-heavy growth profile.
From a technical standpoint, MTS stock is currently testing a long-term support level near the RUB 205 mark. The 200-day moving average is trending upward, and the MACD (Moving Average Convergence Divergence) indicator is showing a bullish divergence, suggesting that the selling pressure from the high-interest-rate fears is exhausting. If the stock can break above the RUB 225 resistance level, technical analysts see a clear path toward the RUB 250 range in the first half of 2026.
The dividend yield remains a significant “floor” for the MTS stock price. The company has historically maintained a generous payout policy, and with the ecosystem businesses now contributing to free cash flow, analysts expect the 2026 dividend payout to meet or exceed previous years. This 10%+ yield (depending on entry price) makes MTS a standout “total return” play in an era of market uncertainty.
Looking Ahead: The 2026 Growth Catalysts
The future of MTS Earnings will be defined by the company’s ability to monetize its massive data set. With a subscriber base approaching 85 million, MTS sits on the largest data lake in the region. The integration of “Agentic AI”—autonomous AI agents that can handle customer service, credit scoring, and content recommendations—is projected to improve operational efficiency by another 5% in the coming fiscal year.
Furthermore, the full-scale integration of the advertising business will be a major revenue catalyst. As domestic brands shift their marketing budgets away from global platforms toward local ecosystems, MTS’s AdTech vertical is perfectly positioned to capture this “redirected” spend. Management has confirmed they are targeting double-digit revenue growth for the full year 2026, a bold goal that would see the company’s annual revenue approach the RUB 1 trillion milestone.
In summary, the December 1st MTS Financial Report paints a picture of a company that has successfully navigated the most difficult phase of its transformation. By focusing on ecosystem synergy, financial discipline, and high-margin digital services, Mobile TeleSystems has evolved from a utility into a digital powerhouse. While external macroeconomic risks remain, the fundamental health of the business is stronger than at any point in the last decade. For investors, the question is no longer whether MTS can grow, but how high the market will re-value this emerging digital leader.