Rostelecom net profit down 72.5% for first nine months of 2009

23 Dec 2009

Russian long-distance operator Rostelecom has announced financial results for the first nine months of 2009 under IFRS guidance, posting net profit of RUB3.26 billion (USD107 million) for the period ended 30 September 2009, down 72.5% on the previous year. The telco attributed the drop to the sale of assets in the first nine months of 2008, such as the sale of a stake in fixed line operator Golden Telecom for RUB8.7 billion in February 2008. Meanwhile, revenues have remained relatively stable, up 0.3% year-on-year to RUB48.76 billion. Total operating expenses for the first nine months of 2009 amounted to RUB44.83 million, representing an increase of 5.7%. 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