Rostelecom consolidated income grows 49% in 2010

28 Apr 2011

Russia’s state-owned telecoms giant Rostelecom has reported consolidated revenues of RUB275.7 billion (USD9.92 billion) for the twelve months ending 31 December 2010; this figure represents an increase of 4% year-on-year. Adjusted net income for 2010 increased 49%, reaching RUB40.8 billion, whilst adjusted OIBDA rose 8% to RUB110.9 billion. CAPEX increased 14% to RUB51.8 billion, representing 18.8% of the firm’s annual revenue. Local telephony services accounted for the lion’s share of revenues, weighing in with RUB85.3 billion of the total. Broadband revenues contributed RUB39.6 billion to the total, whilst mobile services generated a further RUB32 billion. Rostelecom notes that all figures include the earnings of the seven mega-regional telcos that were merged into its central operation on 1 April 2011, namely: North-West Telecom, CenterTelecom, Southern Telecommunications, VolgaTelecom, Uralsvyazinform, Sibirtelecom and Far East Telecom. All seven firms had previously operated under the control of state-owned telecoms holding company Svyazinvest.

In operational terms, the total subscriber base for fixed line voice telephony services remained flat at 29.2 million. In contrast, the newly enlarged Rostelecom saw its total broadband subscriber base grow 26% year-on-year to 6.4 million (excluding 464,000 subscribers of National Telecommunications (NTC), which was acquired in February 2011 and has yet to be fully consolidated into Rostelecom’s operations.) The telco’s total pay-TV subscriber base increased 22%, to 900,000, but looks set to increase exponentially thanks to the addition of around 4.6 million NTC subscribers, which were excluded from the reporting period in question. NTC is the country’s largest cable TV operator, and its cable network passes at least 5.1 million households in Moscow, Moscow Region, St Petersburg, Yekaterinburg and Novosibirsk.