Rostelecom 1H11 revenues climb 7% y-o-y

14 Oct 2011

Russia’s state-owned telecoms giant Rostelecom has reported consolidated revenues of RUB143.6 billion (USD4.6 billion) for the six months ending 30 June 2011; this figure represents an increase of 7% year-on-year. Net income for 1H11 increased 2%, reaching RUB19.1 billion, whilst OIBDA increased 3% to RUB56 billion. CAPEX amounted to RUB25.6 billion, representing 18% of the firm’s 1H11 revenue. All comparison figures are presented on a pro forma basis, and include the earnings of the seven mega-regional telcos that were merged into its central operation on 1 April 2011; North-West Telecom, CenterTelecom, Southern Telecommunications, VolgaTelecom, Uralsvyazinform, Sibirtelecom and Far East Telecom had all previously operated under the control of state-owned telecoms holding company Svyazinvest.

In operational terms, Rostelecom saw its consolidated broadband subscriber base grow 30% to 7.7 million, whilst total pay-TV subscribers amounted to 5.6 million at end-June 2011. Meanwhile, fixed line telephony subscribers decreased 2% year-on-year, slumping to 29.0 million. Rostelecom president Alexander Provotorov commented: ‘The financial and operating results clearly indicate that Rostelecom demonstrated a steady pace of development and achievement of its goals for improving business performance and strengthening market positions. We are moving steadily towards the ambitious goals set out in the company strategy for the period until 2015. Their achievement will increase the company’s market value and increase the welfare of its shareholders’.

Russia, Rostelecom