MTS will return to shareholders up to 20% of the annual OIBDA under the new division policy

The Board of Directors of MTS approved a new dividend policy for 2027-2028, according to which the company will return to shareholders up to 20% of the annual OIBDA (operating profit before depreciation). - Kommersant. The new policy provides for the return of capital to shareholders directly through dividends and through buybacks.

On the dividends themselves, MTS will direct 70% of the total return of value to shareholders, which is up to 14% of OIBDA for the reporting period. The remaining 30% will go to buyback. This procedure will be launched on the basis of a separate decision of the Board of Directors.

The company is shifting from a fixed dividend policy to payouts based on business performance. Over the past three years, in the difficult conditions of high interest rates and cooling consumer activity, the OIBDA indicator of MTS grew by an average of 9.3% per year, and the last five quarters the dynamics reached double-digit growth rates, said Inessa Galaktionova, CEO of MTS.

The minimum target value return to shareholders is RUB 70 billion per calendar year. Under the new provisions, the company plans to pay dividends at least three times a year, the first tranche will be transferred in January 2027. MTS expects to make payments for the first nine months of 2026, for the whole of 2026, the first quarter of 2027, and the first half of 2027. Similar tranches are planned for 2028.

The previous dividend policy was approved in 2024 for two years. The target dividend yield was at least 35 rubles per ordinary share. The total volume of dividend payments of MTS for the fiscal year 2025 amounted to 69.9 billion rubles, their yield was 15.2%. Buyback last time the company held in 2021 for 15 billion rubles.