In 2024, we actively developed and marketed favorable tariffs, in which each customer could choose the optimal set of both standard telecom services and choose from a wide range of ecosystem digital products.

Cubes

In February, MTS launched CUBES, a constructor that will allow you to customize any MTS tariff according to your personal needs so that you can use the connection as comfortably and profitably as possible.

CUBES has collected the most useful services and options for personal tariff settings according to personal preferences. Each CUBE expands the possibilities of the tariff. For example, you can:

• increase the number of minutes included in the tariff;
• get unlimited internet access to selected areas;
• enjoy special privileges, and more.

Launching a youth tariff in partnership with Urent

In June, MTS introduced a unique youth tariff 24, which includes the MTS Music streaming service and offers new opportunities for active urban life: exchanging minutes of conversations for bonus points for trips on Urent scooters, fireproof gigabytes and unlimited connection to popular messengers and social networks.

One of the main advantages of the 24 Tariff is the exchange of unused call time for bonus points from the Urent electric scooter and bicycle rental service, which is part of the MTS ecosystem. Minutes for trips can be exchanged in the My MTS application or in your Personal Account by clicking on the Urent advertising banner.

Another feature of the new tariff is the ability to connect unlimited traffic to use any of the following services separately: VKontakte, Odnoklassniki, Rutube, YouTube, Telegram, Viber, Whatsapp, Discord, Snapchat, TikTok, Twitch, and Skype.

Comprehensive bundle of communication + smartphone

MTS goes on developing the area of operator mechanics with the leading vendors of subscriber equipment of the sector. The following offers are available to consumers:

• when purchasing the “smartphone with MTS SIM card” kit, you will receive a discount on your smartphone;
• when buying a subscription for communication complete with a smartphone, a smartphone discount is provided;
• when buying a smartphone from a certain vendor you receive communication services and accessories for a set amount of money as a gift;
• when buying a set, a tablet or router with a SIM card — 3 months of communication as a gift;
• partnership programs. When fulfilling the conditions of the promotion (for example, when buying a promotional product or when reaching a certain amount of the bill) and concluding a subscription agreement with MTS, the consumer received a unique promo code to activate a Premium subscription with a promotional period.

Reloading roaming options

Before the holiday season, MTS updated its products for international travel. The new “Abroad” option allows you to stay in touch even on vacation. In dozens of countries, this service provides unlimited Internet access and a package of minutes for receiving incoming calls to Russia until the end of the day. The fee for the option is daily, but it is charged only on the day of use.

Innovative VoiceTech technology

In 2024, MTS was recognized as No. 1 in digital subscriber security among the largest Russian ecosystems and telecom operators, according to a study by J’son & Partners Consulting. Since the beginning of the year, Defender has blocked 3.3 billion unwanted calls, and the MTS Secretary has received 250 million missed calls. There will be even more AI-based services in the future. MTS subscribers can already expand their capabilities with MTS VoiceTech.

Defender + contains three security services in one service:

• Defender will answer unwanted calls for you.
• “Safe call” will warn you about a conversation with a possible fraudster.
• “Insurance” against fraudsters up to 1.5 MRUB.

The MTS Secretary will answer if you declined the call or do not answer, introduce you by name and find out the details o f the call, send a transcript in SMS, and a recording of the call in Telegram.

New service management platform

MTS launched a new telecom platform that provides companies in the ecosystem with the ability to manage resources and services in the telecom industry. It will replace the Foris billing system, which the company has been using for more than 20 years. During the year, 30% of subscribers will be transferred to the new platform, and in the next three years, all MTS subscribers will switch to the Telecom Platform.

The Telecom Platform allows you to create new opportunities for ecosystem development, launch personalized offers for customers, and offer ecosystem products to existing Telecom customers without having to switch to new tariffs. The platform also provides reliability and reduces the time to create and bring new products to market by up to 75% by 2025. Due to the reuse of implemented features, optimization of labor costs for new products can be up to 40%.

Launching secure communication — Membrana

At the end of the year, we have launched a mobile application, which allows you to control the filtering of Internet traffic and incoming voice calls, as well as the premium rate for communication. Membrana is a product developed by the MTS Future Crew Innovation Center. The application provides high-quality protection of the subscriber’s digital footprint through patented high-tech ad blocking tools, profiling and behavior tracking scripts, protection against spam, viruses and unauthorized interference with the private life. Privacy is ensured simultaneously in two areas — protection of customer data and voice traffic.

The application uses its own unique algorithm to identify suspicious and malicious websites. Advertising is blocked in any form — images, videos and texts, so that the user can view website pages and video content without pop-up ads. In the Membrana application, you can view statistics on blocked threats and saved gigabytes of Internet traffic and time at any time. Unlike other offers on the market, the content filtering in Membrana is implemented not on the device, but on the network of the telecom operator, due to which it works much faster and does not discharge the smartphone battery. Membrana filters Internet traffic according to blacklists of web addresses. At the moment, there are about 500 thousand resources in the black list of Membrana, and their list is constantly expanding.

Membrana also provides protection for users during voice communications: the customer can select those contacts with whom he wants to communicate personally and define policies for all others. Incoming messages can be sent to an AI secretary who is able to maintain a conversation and make decisions on his own. The AI secretary knows how to prioritize calls — determines the caller, the subject of the call. If the call is critical, the secretary will transfer it to the customer, according to the settings of the profile and contact groups. While the product is available for connection in Moscow and the Moscow region, it is planned to expand the geography of users later.

Launching secure communication for the most important — Membrana Kids

Future Crew innovation center has launched a wide-scale digital safety space service for children, Membrana Kids. The solution has been tested and is now available to MTS subscribers in all regions of the digital ecosystem.

The Membrana Kids service is able to protect children from harmful content in real time. AI in-built in the solution analyzes every website visited by a child, determines whether it contains unacceptable or potentially dangerous information, and then blocks access to it, if necessary. Each website analyzed by AI receives one of the access categories (“safe”, “dangerous” or “forever forbidden”), and then gets into the Future Crew database. This approach speeds up the subsequent analysis of content on the web and makes Membrana Kids even more effective, allowing it to fight even mirrors of malicious sites. The ML model developed by Future Crew specialists is responsible for the analysis and categorization of websites.

Parents who have connected their children to Membrana Kids also have the opportunity to see the top sites that the child visits every week. This will help parents keep abreast of their children’s interests and experiences. In addition, Membrana Kids also contains a number of features that protect children from various threats and offline. For example, the Smart Filtering function analyzes calls to a child’s device, checks phone numbers against a database of spam and scammers, and blocks it if the call is suspicious. The “trusted list” function allows parents to determine a list of phone numbers from which the child can receive incoming calls: for example, the numbers of his grandmother, mother, and brother. All other incoming messages will be blocked.

Retail Distribution

The MTS retail chain remains the main channel for attracting MTS subscribers. More than 40% of SIM card sales are carried out through MTS retail outlets. MTS own retail chain demonstrates high rates in the number and quality of SIM card activations.

At MTS offices, subscribers receive a full range of services provided by the operator, including the services of broadband access to the Internet and TV. Being points of contact with the MTS ecosystem, MTS retail outlets allow increasing cross-sales. Any new service released by the Company automatically becomes available for sale in the retail chain office.

Our own sales channel enables us to more efficiently manage the number and quality of activations, as well as to maintain our level of service.

Network Development

MTS continues to develop and upgrade the network to ensure a consistent level of coverage and a high quality of mobile Internet. In 2024, more than 17000 4G BSs were commissioned, +13% of the network. The main increase occurred in large regions of Russia: Krasnodar Territory and Moscow are in the lead. In St. Petersburg, the 2,100 MHz frequency spectrum has been fully converted to LTE technology.

In order to maintain and expand the network quality, MTS is increasing the number of regions, in which it is redistributing the frequency spectrum to LTE technology (60 regions by the end of 2024).

Fixed-Line Business

B2C fixed-line business

The share of Internet BBA penetration into the telecom market in 2024 reached 56% (in 2023–54%) on average in the RF¹. In 2024, the subscriber base growth rate in the market was 1.9% (in 2023–1.4%): the main increase in physical terms was provided by the B2C segment, which accounts for almost 96% of the BBA subscriber base in the RF. The increase in the number of users is associated with the commissioning of new residential buildings, the expansion of operator networks in the suburbs of cities and the private sector. Despite the general decline in the population, there is a continuing trend towards an increase in the number of households due to a decrease in their size (an increase in the number of households consisting of one and two people), which also affects the growth of the market in physical terms.

¹ In early 2023, Rosstat (Federal State Statistics Service of the RF) published new data on the number of households in the RF obtained on the basis of the 2020 census. Previously, the last official data was the data provided by Rosstat on the basis of the 2010 census. Over 10 years, the number of households in the RF increased by 11,5 million, this led to a decrease in such an indicator as the BBA service penetration among households.

Herewith, the fixed-line BBA market in the country remains saturated; further growth of users can be achieved due to cities (penetration of more than 70–80%), as well as coverage of the private sector in the city suburbs. In 2024, the trend towards expanding the geography of BBA providers using the FVNO model based on the networks of partner operators in the regions continued. MTS has significantly expanded its presence (plus 9 cities).

Based on the 2024 results, ARPU increased by 13.8 rubles and amounted to 391 rubles (as compared to RUB 378 in 2023). Western sanctions, inflation, and an increase in the cost of equipment and contractor services continue to affect the market and lead to an increase in the cost of services. In addition to the need to modernize equipment, expand network capacity and improve the quality of services, changes in tax legislation will be one of the additional burden factors.

For the second year in a row, the Russian pay-TV market has been under pressure from OTT video services caused by the proliferation of online cinemas and the expansion of the fleet of smart TVs. The penetration of the service has been maintained at 70% for the past two years. By the end of 2024, ARPU increased to 195 rubles (compared to 191 rubles in 2023). The market volume returned to positive dynamics, reaching 108.4 BRUB (an increase of 1.9% compared to 2023). The main reason for the growth was the numerous marketing promotions associated with a decrease in the outflow of users during the period of forced interruptions with broadcasts.

Despite multidirectional trends in the fixed-line business market in 2024, MTS continues to maintain a leading position in terms of growth rates. The combined base of broadband Internet subscribers and pay-TV subscribers is growing by 5% compared to 2023. In 2024, fixed-line business revenue also goes on growing steadily by 6%. Given the saturation of the broadband Internet market, as well as the slowing pay-TV market, MTS ensures growth by leading² the number of subscribers — individuals using converged tariff plans (an increase in the share by 5 percentage points during 2024). At the same time, the trend towards migration of users to higher home BBA connection speeds (including the speed of 1 Gbps) impacts MTS base and revenue’ indicators positively.

² According to the annual report “Research on the Russian Telecommunications Market — 2024”, prepared by the independent consulting agency TMT Consulting.

Fixed-line network

In 2024, MTS continued to implement a program of upgrade and construction of fixed-line networks. The share of the 1Gb network in Russia increased by 6% and amounted to 67% of the total fixed-line network coverage.

In addition to its own construction of fixed-line networks, MTS continues to expand coverage under the FVNO (Fixed Virtual Network Operator) model with federal partners Rostelecom, Vimpelcom, TTK, as well as with local operators. According to this scheme, MTS launched a broadband network in the cities of Saint Petersburg, Samara, Togliatti, Orenburg, Novotroitsk, Orsk, Yoshkar-Ola, Arkhangelsk, and Cherepovets. The increase in coverage amounted to more than 1 million households. It is planned to launch projects in the cities of Voronezh, Volgograd, as well as in the Republic of Bashkortostan and other regions of the Russian Federation.

Convergent

The Company continues to develop a range of convergent data plans. In 2024, MTS maintained the growth rate of its convergent base at more than 20% year-on-year. MTS also improves the efficiency of the converged business, in 2024, paid speed options were introduced for customers of the converged TP line, about 30% of subscribers choose high-speed TP above the minimum base rate in the tariff, which effectively pays for the construction of Gb networks.

Additionally, subscribers have the opportunity to purchase subscription equipment in installments — more than 40% of subscribers buy MTS equipment when they connect new services.

In addition to classic converged solutions combining mobile and fixed-line services, in 2024 MTS entered a new segment of converged products linking Telecom and Fintech services: when applying for an MTS Money debit card, along with the purchase of a new SIM card with an MTS More tariff or a Tariff 24, the subscriber receives a 100% discount on MTS mobile communications for the first two months, as well as 5 categories of increased cashback to choose from. Starting from the third month and in each subsequent month, a 100% discount on mobile communications and 1% cashback on card purchases (or choose 5 cashback categories) is provided when making at least 5 purchases per month using an MTS Money card.

B2B/G

В2В

In 2024, MTS is showing record growth. Growth of revenue by 2023 was 20.2%. The main contribution to the growth of revenue was made by Equipment, IoT M2M, CCTV, ICS, Cloud. The record growth of mobile business and BBA revenues shall be noted as well.

В2G

MTS’ shift in 2024 to work to strengthen the Company’s participation in the regional and national digital agendas of the subjects, focusing on the outstripping growth in sales of non-core products, including work on import substitution in B2G, the supply of a full range of products and solutions of the group of companies, ensured a 49% increase in non-core revenue, while maintaining revenue growth dynamics for the core business.

MTS entered a new market in 2024 and successfully established itself in the field of environmental solutions, the first major contracts were signed, which also allowed to increase the service portfolio and form a funnel of projects for 2025 and 2026.

In the coming years, MTS will continue to increase revenue growth in the B2G segment by focusing on the Company’s participation in national programs and the regional agenda of the entity, increasing the focus of regional teams on providing customers with integrated solutions, video surveillance solutions, IoT and other non-core products of the group of companies that meet and solve the needs of government customers.

B2B products

Marketplace В2В

In August, MTS launched its own marketplace of digital solutions for small and medium-sized businesses, which provides convenient product selection and online shopping in a “one-stop shop” mode. The window features more than 100 business services from the MTS digital ecosystem. Digital products powered by Big Data, AI, and IoT are divided into categories: geoservices, information security, communications and the Internet, cloud solutions, targeted mailings and advertising by MTS Marketer, artificial intelligence, collaboration, communications, and the Internet of Things.

The platform allows you to pay for goods immediately, or put them in the shopping cart to return and pay later. The technological platform guarantees the safety and reliability of all operations. The platform was developed by the MTS product team.

Mobile business

To increase the convenience and reduce business costs when receiving communication services and interacting with MTS, a number of projects have been implemented to develop online sales and automate service processes:

• The portfolio of tariffs and promotions that are available for purchase on the B2B marketplace and in the personal account of MTS Business without visiting the office or calling the manager has been expanded;
• The process of definitive online contract registration has been introduced without signing paper documents;
• The opportunity to reissue the number online has been launched.

The Smart Business tariff line includes more ecosystem opportunities:

• smart protection against spam calls and data leak,
• unlimited access to the MTS Link video conference,
• VK Video and Dzen platforms,
• unlimited messengers,
• navigation and translator when traveling around the world,
• several months of free use of the MTS Premium subscription and the Stroki book service,
• 30% discount on sports training at GoGym fitness sharing.

During the year, it was possible to connect a mobile communication with a refund of the entire amount to the mobile phone account as part of the “Annual Communication Bonus” promotion or double the packages of minutes and gigabytes without increasing the subscription fee for the “Doubling minutes and gigabytes forever” promotion.

The launch of convergent services is a part of the MTS ecosystem development program. In 2024, small businesses will be able to connect a package of essential services at a discount of up to 30% — mobile communications, virtual PBX, 8800, employee location monitoring, fixed Internet, CCTV, and Wi-Fi. For major businesses, there was a discount when connecting mobile communications in conjunction with the MTS Link video conferencing service.

³ Research performed by MAGRAM MR LLC

Fixed-Line Business

In 2024, for the second year in a row, MTS demonstrated unprecedented revenue growth from fixed Internet access by 19.7% by 2023, which is more than three times faster than the market dynamics of +5.8%.

The results are driven by a 12.1% increase in the active base of corporate subscribers by 2023, thanks to the active automation of processes and the increased value of MTS’ offerings achieved through focused work on the development of related services.

CCTV

In 2024, MTS CCTV revenue growth was 73% by 2023, service revenue growth was +23%, and the number of contracts increased by 56% in 2023. Key updates of Sphere — a control system by MTS — were performed; it is a comprehensive solution for large CCTV and security systems. Major CCTV projects in the transport sector were implemented with national customers and large businesses in the field of monitoring cargo movement and safety. There have been major projects for calculating passenger traffic based on video analytics.

ICS and MTT JSC

In 2024, MTS Exolve, a subsidiary of MTS PJSC, achieved significant success in the field of business communication solutions. One of the key events was the recognition of the MTS Exolve platform as the “Communication Platform of the Year” at the CNews Awards 2024. This award highlights the efficiency and reliability of the communication infrastructure developed by the Company for business.

MTS Exolve also took the first place in the rating of virtual PBX and IP telephony providers compiled by CNews. This leadership is due to the broad functional and omnichannel capabilities of the platform, which make it possible to fulfill any business requests and ensure effective communications management. In particular, in 2024, the Company completely updated its Virtual PBX, providing customers with more than 40 tools to increase sales and automate the work of employees.

In 2024, MTS Exolve continued to expand the functionality of its platform. New features have been introduced, such as Speech Analytics, auto-informer detection, and the API Communication Strategy.

In the field of Telecom API, MTS Exolve continues to lead the Russian market. The Company is actively developing its solutions, offering businesses modern tools for effective and convenient customer communication. The Telecom API market is showing high growth rates, and MTS Exolve is playing a key role in its development.

MTS Link

MTS Link’s consolidated revenue increased by 65% compared to 2023. Revenue growth, excluding the results of Vinteo LLC, which joined the ecosystem in November 2024, amounted to 36% year-on-year. MTS Link’s revenue growth rates exceed the market average.

In 2024, we focused on Unified Communications (UC): our goal is to offer MTS Link solutions for all scenarios of online and hybrid interaction. In April, we launched a new product, a corporate messenger of our own design, which became the basis of our UC offer and allowed us to transfer the organizational structure of the teams to the digital space. We have also implemented a number of artificial intelligence-based features, which have made our platform a tool for improving workflow efficiency.

In 2025, MTS Link will focus on improving operational efficiency, launching new services and integrations as part of the movement towards unified communications, as well as developing a comprehensive offering to equip companies with turnkey video conferencing equipment and software.

In 2024, the total number of active customers of MTS Link solutions — Meetings, Webinars, Chats, Whiteboards and Courses increased by 65% compared to 2023. At the same time, the number of customers grew in all priority sectors: in particular, in industry they increased by 92%, in healthcare — by 50%, in education and in finance and consulting — by 48%. The number of online events held in MTS Link services exceeded 35 million during the year.

In November 2024, Webinar LLC (MTS Link brand) completed the acquisition of 51% of VINTEO (Vinteo LLC). The purpose of the deal was to expand MTS Link’s offering in the field of video conferencing server solutions and strengthen competitiveness in the B2B product market. Today, the MTS Link offer covers most of the cases of working with equipment in meeting rooms using the SIP protocol.

Business in the Markets of Operation

Belarus

Mobile TeleSystems JLLC (MTS Belarus) was established in 2002 by MTS PJSC of Russia (49%) and Beltelecom RUE of Belarus. The Company operates under the MTS brand and is the largest mobile communication operator in the Republic of Belarus. Its main competitors are BeST CJSC (‘life’ trademark) and A1 UE (Unitary Enterprise).

In Belarus, MTS provides mobile communication services of GSM 900/1800, UMTS 900/2100 and 4G (including 2600/1800/800) standards, home Internet and TV services, offers cloud services and products for business, as well as financial services in partnership (MTS Money).

MTS Belarus’ own retail chain is the main channel for attracting subscribers, together with single-brand stores of its partners. The network of sales and service offices includes 90 of its own offices and 215 retail facilities of MTS commercial representatives in 133 localities of the Republic of Belarus, which allows connecting subscribers and providing service operations in all regions and key cities of Belarus.

MTS Belarus maintained its leading positions, significantly outperformed its market competitors and completed 2024 with a market share of subscribers of about 48% and a market share of 50% in terms of revenue (according to the Q4 results). The share of subscribers to V&D tariff plans is 65.0%, and the share of subscribers using data transmission has reached 73.0%. The average volume of calls per MTS Belarus subscriber in Q4 2024 amounted to 571 minutes per month (+2.5% year-on-year) and the use of data transfer amounted to 19.0 gigabytes per month.

⁴ According to internal marketing research.

In 2024, MTS Belarus continued to develop cloud services; revenue at the end of 2024 increased by 62% as compared to 2023.

MTS Belarus provides services that are in demand on the market: IaaS, SaaS, BaaS, Professional Service, Corporate Mail, Object Storage, information security services, and others. In 2025, the Company plans to further develop its services with an emphasis on information security services, as well as expand its market presence with products for small and medium-sized businesses. Special attention will be paid to the implementation of complex technical solutions focused on innovative industries and long-term cooperation.

In 2024, MTS continued to expand access to 4G network services throughout Belarus together with the infrastructure operator beCloud. In total, in 2024, the LTE network in Belarus increased by 918 new base stations: 595 — in the 800 MHz range, 163 — in the 1,800 MHz range and 160 — in the 2,600 MHz range.

Also, in 2024, MTS Belarus continued to expand its network coverage for the Internet of Things and networks in the 3G standard. Minsk, regional centers and cities/towns with a population exceeding 50 thousand people were provided with NB-IoT communication. In 2024, 74 NB IoT BSs, 146 3G BSs in the 2,100 MHz range and 128 BSs in the 900 MHz range were commissioned. Besides, MTS, together with the operator A1 UE, commissioned 123 BSs to improve the 3G coverage in rural areas using RAN-Sharing technology in the 900 MHz range.

Fintech

The past year has been a landmark one for the MTS financial vertical. In 2024, three key events took place in the life of the fintech area:

1. Holding the IPO of MTS Bank PJSC with raising of 11.5 BRUB.

2. Approval of the updated fintech development strategy for 2025–2027.

3. Launch of the flagship MTS Money card, which combines the bank’s services and ecosystems.

IPO of MTS Bank

In April 2024, MTS Bank successfully conducted an initial public offering (IPO), giving investors the opportunity to enter the capital of one of the most promising and fastest-growing players in the fintech market. This event is of strategic importance not only for the Bank, but also for the entire MTS ecosystem, within which MTS Bank became the first public issuer, which underlines its leadership role in digital finance.

The total size of the IPO was 11.5 BRUB in the form of 100% cash-in (4.6 million new shares were sold at a price of 2,500 rubles per share). The Bank’s market capitalization at the time of the IPO was 86.6 BRUB. MTS Bank’s IPO became one of the largest in size in 2024.

Key indicators for the Bank’s shares:

• Share of the Bank’s shares in free float is more than 13% of the authorized capital.
• Average daily trading volume in 2024 — 144 MRUB.
• More than 96000 individuals are shareholders of the bank as of the end of 2024.
• The bank’s shares are included in the first quotation list of the Moscow Stock Exchange, as well as in the broad market and financial sector indices.

Updated development strategy for 2025–2027

In November 2024, the Board of Directors of MTS Bank approved a new strategy aimed at strengthening the resilience of the credit institution to changes in monetary policy. The main goal of the strategy is to make commission and risk-free income a dominant part of the bank’s operating income.

Key areas of the strategy

• Advanced development of frequency attraction products and Daily Banking.
• Increasing the frequency and profitability of lending.
• Expansion of cross-sales of passive and transactional services.

Ways to achieve your goals:

• Transformation of card products with an unprecedented value proposition and a focus on active transactional customer behavior.
• Launch of the Flex BNPL service to stretch the payment of purchases into several parts on the ecosystem’s windows, as well as by QR in any store in the RF.
• Development of high-frequency lending with low average purchase amount and high returns, as well as entry into the segment of microcredit and car loans.
• Growth of customer balances and increased involvement of Private & Premium segment customers in Daily Banking.
• Expansion of the product line of investment products, including the development of MTS Investment functionality.
• Creating targeted offers for different customer segments.
• Development of payment infrastructure for companies.

MTS Money card

In mid-2024, fintech launched its flagship product, the MTS Money debit card, which has become a real breakthrough due to its unique customer conditions. In just six months since the launch, 1.3 million cards have been sold, which confirmed the high demand and need for the product.

The MTS Money card offers customers exceptional benefits when using MTS services: payments for mobile communications, subscriptions to MTS Live, Stroki, Urent services, as well as when using cloud storage.

Retail

Revenue of the MTS Group’s retail business segment increased by 14% to 78.6 BRUB in 2024, while OIBDA increased by 15% to 10.1 BRUB. The number of MTS own and partner BS was 4,214 at the end of 2024.

Achievements 2024:

• Revenue from the sale of goods increased by +14%.
• Share of online sales increased to 32% (year-on-year increase of +8 percentage points).
• Share of RTC in the Living 2M MTS subscribers reached 52% (year-on-year increase of +5 percentage points).
• Number of MTS Bank debit cards issued increased 2.8 times.
• Premium subscription sales increased 1.5 times.

In 2024, the tNPS of the MTS Retail network reached a historic maximum, year-on-year we showed an increase of +4.5 percentage points.

We have managed to significantly reduce paper consumption in our stores by eliminating paper applications and transferring the bulk of service operations to electronic signing and self-service channels. By the end of 2024, 86% of service operations are performed without signing paper applications, and 6 times more operations were performed in the My MTS application compared to last year, thanks to the training of customers by retail employees to use this application.

We value the time of our customers and employees, so we are constantly working to optimize service procedures. Due to the simplification of a number of business processes, the total number of service operations performed in information systems decreased by 13%. 

In 2024, a record number of pre-orders for top smartphone models were processed in the online store.

Based on the requests of our customers, we choose the most convenient communication channels. By the end of 2024, 60% of requests were processed in chat rooms.

Media

MTS Media Holding

mtsmedia.ru

In February 2024, MTS’ entertainment assets were separated into a single MTS Media vertical. The multidisciplinary holding has brought together businesses in various entertainment segments, from film production and online platforms to book publishing and concert venues. The media vertical includes the online cinema KION, MTS Live, the online book service Stroki, the streaming service MTS Music and the full-service music company MTS Label. By combining them, the media holding aims to create multi-format projects, search for and develop media franchises that can be monetized in different environments, thereby offering a voluminous immersion into the world of entertainment and emotions.

MTS Media Holding Structure

MTS Media’s strategy is based on the 360 approach, where content is used on different platforms and services and uses all the capabilities of the ecosystem. In 2024, the holding implemented the following 360 projects:

“The Master and Margarita”:

• film adaptation of Mikhail Bulgakov’s novel was released exclusively in the online cinema KION,
• the audiobook, dubbed by Leonid Yarmolnik, who starred in the film, was released in Stroki,
• MTS Live has released a selection of performances on “The Master and Margarita”,
• playlists of the novel’s characters are available in MTS Music.

“Secrets of Karenina”:

• the series “Secrets of Karenina” based on Pavel Basinsky’s book “The True Story of Anna Karenina” was released on KION,
• the premiere was timed to coincide with the release of this book in Stroki,
• MTS Live held a large-scale interactive exhibition at the Vitebsk Railway Station in St. Petersburg, which became a reinterpretation of the world-famous novel by Leo Tolstoy.

“Amura”:

• inserts from animated manga created by the Stroki service’s artists have been integrated into the series “Amura” on KION,
• for the premiere of “Amura” on KION, Stroki released a spin-off series — three original manga, complementing the main storyline, and a paper version of the comics was also released,
• with the support of MTS Label, a soundtrack was recorded performed by Tosya Chaikina and the band Three Days of Rain
• joint collection of figurines and tableware with the Gzhel brand was released.

“Arbenina”:

• Diana Arbenina made her film debut in the series “Mutual Consent”,
• the documentary “Arbenina” was released on KION,
• the singer performed at the MTS Live Summer festival.

kion.ru

KION online cinema offers over 200 TV channels, thousands of films, serials, animated cartoons and documentaries. The flagship area of the platform is the originals line. Over the 4 years of its existence, KION has released more than 90 original projects, such as the dramedy “Kidney” with Lyubov Aksenova, the detective drama “Mutual Consent” directed by Valeria Guy Germanica, the psychological crime drama “Crystal” with Anton Vasiliev and many others. KION’s original projects have won more than 50 Russian and international awards.

KION is developing technologically and offers stable secure service, customer support, children’s accounts, user-friendly interface, and accessibility on any gadgets. In 2024, the KION online cinema launched many new features: a waiting rating for projects, a “Games” section with quizzes, the beginning of video playback with the best quality, Face ID and Touch ID login, and adaptive quality depending on the connection speed. Active work continues on the implementation of Big Data and AI, with which the recommendation system works and individual collections of content are created, which users appreciate so much.

KIONFILM

In 2024, MTS Media Holding separated the original content production unit into an independent business and began developing TV series under the brand of the new KIONFILM studio. The studio’s main task will be to create projects for its own online cinema KION, as well as for other online platforms, TV channels and film distribution.

live.mts.ru

MTS Live is engaged in producing and promoting its own events: concerts, musicals, theatrical productions, as well as ticket sales and manages a federal network of concert venues.

In 2024, MTS Live launched a new musical, “The Last Fairy Tale”, and expanded its offline infrastructure. The Theater on Tsvetnoy was launched and new venues were opened in the MTS Live Hall network in St. Petersburg and Nizhny Novgorod. The MTS Live Summer festival was open-air in Luzhniki for two months and attracted 120,000 people.

music.mts.ru

A streaming service for listening to music with a collection of tens of millions of tracks. Available to subscribers of MTS and other operators.

label.mts.ru

An ecosystem full-service music company responsible for working with artists using the 360 model.

Soundtracks have been created for the action drama “Amura” for KION and for the retelling collection “Tales of Sorrow and Joy” for Stroki

stroki.mts.ru

Stroki is a book service where you can read books, magazines, manga and comics, listen to audiobooks and podcasts. Stroki using artificial intelligence was the first on the market to bring the covers and illustrations inside e-books to life. In October 2024, Stroki integrated audio files into the e-book text — a player that plays audio is integrated into the updated format. Thereby, for the first time in the Russian market, Stroki combined all three book formats — paper, electronic and audio.

• There are 250 thousand works in the catalog, and about 57 thousand pieces of content were added in 2024.
• The active audience doubled in 2024.
• The number of original projects increased by 24.32% year on year.
• Original projects of the Stroki publishing house are finalists of the Book of the Year and Yasnaya Polyana awards.

AdTech

MTS AdTech is the fastest growing vertical of the MTS group. The reporting year 2024 was a year of massive growth for MTS AdTech, which was made possible by continuous product development, successful M&A deals, the introduction of advanced technologies and strategic partnerships with major market players. By the end of 2024, MTS AdTech’s revenue increased by 58% year-on-year, to 58.7 BRUB.

The launch of the MTS Ads Premium Video technology video seller and the Company’s strategic partnership with the Ivi online cinema, the involvement of external data providers such as X5 and Magnit, as well as the creation of a unique Spy service to analyze competitors’ creatives in Telegram together with WhoIsBlogger allowed MTS AdTech to strengthen its leading position in the advertising market.

A significant role in the revenue growth of MTS AdTech was played by the development of the technology platform for businesses and agencies Marketer PRO, as well as the introduction of artificial intelligence-based tools into the MTS Marketer platform for small and medium-sized businesses, which is used by more than 20 thousand customers. In the fourth quarter of 2024, MTS AdTech launched a beta version of an AI moderator for checking advertising messages in Telegram Ads and SMS newsletters, as well as an AI assistant author for small businesses that generates creative ad texts using artificial intelligence.

The number of unique contracts, as well as the number of registered and confirmed customers, doubled year-on-year in the fourth quarter of 2024. By the end of 2024, customers of the advertising vertical launched more than 470 thousand advertising campaigns in Telegram Ads.

Revenue from MTS DSP and digital inventory of companies and products included in the AdTech circuit, such as DSP Segmento and Buzzoola, increased 3.2 times in the fourth quarter of 2024 compared to the same period in 2023. This is due to technological updates of platforms, the connection of external data providers, as well as strategic partnerships of the advertising vertical with major market players such as Avito.

The MarTech line showed a twofold increase in multichannel revenue for key customers in the fourth quarter of 2024 compared to the same period in 2023. This was due to an increase in the number of strategic direct customers in the banking sector, as well as in the retail sector.

In 2024, MTS Group became the controlling shareholder of the Urent kick-sharing service. As a result, MTS Urent has shown steady growth in all operational indicators over this period. The number of trips on the MTS Urent platform increased by 52.2% in 2024, to 100.3 million. At the same time, the MTS vertical continues to grow faster than the kick-sharing market, which grew by 39% in 2024 (according to the data of Truesharing).

In the reporting year, MTS Urent relied on the active expansion of the geography of its presence, as well as on the development of the MTS ecosystem, which significantly increased the user base. The number of active users on the platform (YAU) increased by 30% year-on-year, to 7.2 million people. Users who have made trips during the season are considered active. The inclusion of MTS Urent in the MTS Premium subscription has helped attract 1.2 million new customers to the ecosystem, with service users in second place after Telecom in terms of cashback write-off activity for scooters.

A 24-hour tariff has also been launched, which allows you to exchange unused minutes for scooter rides. As part of it, MTS subscribers exchanged more than 10 million minutes for bonus points and traveled more than 2 million kilometers on Urent scooters.

In 2024, the number of MTS Urent locations increased by 26% to 187. In 2024, the Company launched scooters in 6 new million-plus cities — Voronezh, Yekaterinburg, Chelyabinsk, Ufa, Novosibirsk, and Krasnoyarsk.

Another strategic decision was the creation of the RnD area. At the end of 2024, MTS Urent acquired Eleven, a developer of sharing technology. An RnD center was created on its basis, which develops its own solutions for sharing. In particular, these are its own electric scooter, cargo bike and other technologies that in the medium term will allow MTS Urent to improve operational efficiency and gain additional competitive advantages.