New charging scheme impacts on Rostelecom profits

10 Apr 2007

Russia’s largest long-distance operator Rostelecom has reported its full-year 2006 financial and operating results. The telco says revenues increased 49% to RUB60.03 billion (USD2.21 billion), thanks primarily to a new tariff system for domestic long-distance (DLD) and international long-distance (ILD) services. EBITDA for 2006 totalled RUB11.05 billion, down 24.3% year-on-year, representing an EBITDA margin of 18.4%. Full-year net profit fell from RUB9.03 billion in 2005 to RUB7.19 billion last year, due to higher payments made to operators under the new charging scheme. DLD traffic increased by 3.4% in 2006 to 9.66 billion minutes, while outgoing ILD traffic rose 9.2% to 1.93 billion minutes. Incoming ILD traffic also totalled 1.93 billion minutes – a year-on-year increase of 31.2%.

‘Rostelecom’s 2006 financial and operational performance demonstrates the soundness of the company’s strategy in the new market environment, as we continue to strengthen our competitive position in each business segment,’ the firm’s CEO Dmitry Yerokhin commented.

Russia, Rostelecom