Rostelecom reports slow sales growth

7 May 2008

Russia’s largest long-distance operator, state-backed Rostelecom, has reported a 1% increase in first-quarter revenues to RUB15.36 billion (USD633 million). A change in the way interconnect charges are levied saw operating income before depreciation and amortisation rise 19% to RUB4.65 billion, though net profit fell 5% year-on-year to RUB2.76 billion due to higher amortisation costs. Revenues from domestic long-distance calls fell, Dow Jones reports, with lower tariffs outweighing an increase in traffic volumes. International services were hit by both falling prices and lower call volumes. Rostelecom is part-owned by the state telecoms holding group Svyazinvest.

Russia, Rostelecom