Rostelecom revenues slip

4 Nov 2009

Russian long-distance operator Rostelecom has announced that revenues for the first nine months of 2009 have slipped by 2.2% year-on-year, to RUB45.4 billion (USD1.55 billion) as domestic long-distance (DLD) and international long-distance (ILD) traffic fell by 7.5% and 14.1% respectively. Operating income before interest, depreciation and amortisation (OIBDA) for the nine months ended 30 September 2009 was RUB9.36 billion, down 22.4% on the previous year’s results. Net profit, meanwhile, fell by 34% to RUB4.55 billion. Rostelecom’s operating expenses for the reporting period amounted to RUB 39.4 billion, representing a year-on-year increase of 4.9%. As reported by CommsUpdate on 9 October, Svyazinvest, which holds a controlling stake in Rostelecom, has already outlined plans to combat the decline in demand for fixed line services. The Russian conglomerate plans to completely restructure its telecoms holdings, combining its seven regional fixed line operators with Rostelecom into a single company which will provide fixed line telephony, broadband and mobile services across the whole country.

Russia, Rostelecom, Svyazinvest