MTS Reports Q4 & FY 2020 Results

• Full-year 2020 Consolidated Group Revenue increased 5.2% year-over-year to reach RUB 494.9 bn.
• FY20 Group Adjusted OIBDA increased 1.7% year-over-year to RUB 215.2 bn.
• FY20 Group Net Profit increased 13.2% year-over-year to RUB 61.4 bn.
• 2021 Full-Year Guidance of at least 4% revenue growth, at least 4% OIBDA growth, and Cash CAPEX of approximately RUB 100-110 bn.

MOSCOW, March 4, 2021 - Mobile TeleSystems Public Joint Stock Company ("MTS" or "the Company" - NYSE: MBT; MOEX: MTSS), Russia's largest mobile operator and a leading network-native provider of media and digital services, announces its fourth-quarter and full year 2020 financial and operating results.

In 2020, MTS demonstrated solid top-line performance across core telecom services and segments beyond connectivity, with Consolidated Group Revenue increasing 5.2% year-over-year. The company also saw full-year Group Adjusted OIBDA notch upwards by 1.7% year-over-year, and Group Net Profit increased double digits (+13.2%) versus 2019.

Notably, Russia mobile service revenue accelerated to 6.4% growth year-over-year in Q4 - despite headwinds in international roaming revenue due to continued travel restrictions amid the COVID-19 pandemic. The Company also added some 230,000 active mobile subscribers quarter-on-quarter in Russia, reflecting a recovery in the subscriber base following COVID-19 impacts on guest workers, tourists, and secondary SIM card users.

In addition, the Company saw strong uptake of services and apps from across the expanding MTS digital ecosystem. Pay-TV users increased 44% in 2020 to reach 6.6 m, and, in particular, users of MTS's over-the-top offering for smart TVs and smart devices more than doubled year-over-year to reach 2.5 m. In addition, the number of consumer broadband subscribers increased 10.3% year-over-year in Q4 to reach 3.8 m.

Alexey Kornya, President & CEO, commented: "I'm happy to report that MTS closed Q4 in a position of strength. Despite global challenges, in 2020 we delivered record-high financial results in Russia. Our core telecom business saw top-line growth in both wireless and wireline segments. In our new verticals, we saw surging acceleration in key performance indicators. In Fintech, net interest income at MTS Bank was up by 32% year-over-year. In Media, we gained 1.5 million new OTT users - more than the total we had at the beginning of the year. And in B2B, we grew our IoT subscriber base by 30% and saw double-digit revenue growth in cloud solutions. Overall, we executed at pace on the first full year of our CLV 2.0 growth strategy. We are gaining momentum on our journey to be Russia's premier network-native provider of advanced digital services."

MTS Group key figures (RUB bn)

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Adjusted OIBDA for 4Q 2019 and 2019 does not include a reversal of impairment of non-current assets of RUB 148 mln. Adjusted OIBDA for 2020 does not include a loss from impairment of non-current assets of RUB 2,023 mln.

Financials for 2019 and 2020 have been restated due to the deconsolidation of NVision Group.

Excluding purchases of 4G license in Armenia in 2019 and net of cash proceeds under sharing agreement.

Excluding lease obligations.

Including the effects of IFRS 15 and 16.