PJSC Mobile TeleSystems is a leading Russian technology company offering mobile and fixed-line services, Internet access, pay TV, digital services and mobile apps.
MTS Group has over 105 mln mobile subscribers in Russia, Armenia, Ukraine and Belarus, and it also provides fixed-line telephony, broadband Internet access and television services in Moscow (through its subsidiary MGTS) and all federal districts of Russia. MTS has over 5,800 retail outlets in Russia. MTS has been gradually expanding its business by adding new areas that have high growth potential and synergies with the traditional telecom industry, including financial and e-commerce services and IT solutions in the field of system integration, the Internet of things, monitoring, data processing, cloud computing and electronic document management.
In 2018, MTS achieved strong operating and financial results on the back of healthy market growth in Russia and increasing penetration of digital services in all the regions where the company operates. Growth of revenue in the mobile business enabled the company to post record OIBDA in 2018. The main events of 2018 are related to entering new markets and business segments. For example, MTS acquired Russia’s two leading ticket distributors, Ticketland.ru and Ponominalu.ru; bought a stake in YouDo, Russia’s biggest online service connecting customers with service providers for household and business tasks; and launched the Smart University educational platform and the MTS Marketing Expert digital platform.
MTS and Medsi Group started strategic cooperation in the area of digital healthcare with the launch of the SmartMed telemedicine platform. On the basis of this platform the companies will develop a range of digital healthcare products and services. At the end of 2018, MTS started selling SmartMed services to retail customers in Moscow and the Moscow region.
In Q3 2018, MTS acquired LLC Avantage, one of the largest data processing centres in Russia, which will significantly bolster the operator’s position in the fast-growing market for cloud services. This is the tenth data centre in MTS’s federal network.
In July 2018, MTS acquired a 28.63% stake in PJSC MTS Bank for RUB 8.27 billion from Sistema. Later in February 2019, MTS acquired another 39.5% stake in MTS Bank from Sistema. As a result of the transactions, MTS’s shareholding in the bank increased from 26.6% to 94.7%. The acquisition enabled MTS to consolidate its fintech business in Russia and to simplify operational management, making it possible to launch new products faster and to utilise MTS’s retail network more effectively in order to expand the bank’s footprint. In Q3 2018, MTS started consolidating the results of MTS Bank, which had a positive impact on revenue.
Since 2016 MTS has been implementing its 3D strategy (Data, Digital and Dividends). In 2018, the board of directors of MTS approved an updated strategy for 2019-2021, according to which the company will offer its subscribers services united into one ecosystem.
MTS continued active development of digital products in the retail and corporate markets and launched a number of strategic initiatives in the area of digital businesses. In March 2018, MTS launched an in-house accelerator, StartUp Hub, that enables technology startups to integrate their solutions and products with the company’s business.
MTS’s investment programme includes nationwide projects aimed at improving the quality of communications, expanding coverage and rolling out the LTE network, increasing the capacity of intra-areal and trunk networks to enable data traffic growth, developing new priority business segments (Big Data, Cloud, IoT, OTT, financial technologies) and B2B projects for customers, and preparing communication networks for the commercial operation of 5G in Russia.