Rostelecom 3Q11 revenues up 8%; broadband subscriber base grows to 7.9m

9 Dec 2011

Russia’s state-owned telecoms giant Rostelecom has reported consolidated revenues of RUB73.86 billion (USD2.35 billion) for the three months ended 30 September 2011, representing an increase of 8% year-on-year. Net income for 3Q11 increased 1%, to RUB10.3 billion, whilst OIBDA rose 9% to RUB29.5 billion. CAPEX amounted to RUB15.4 billion, representing 21% of the firm’s 3Q11 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. All had previously operated under the control of state-owned telecoms holding company Svyazinvest.

In operational terms, Rostelecom saw its consolidated broadband subscriber base grow 27% year-on-year to 7.9 million, with broadband revenues increasing 21% to RUB34.7 billion. Meanwhile, fixed line telephony subscribers decreased 3% y-o-y, slumping to 28.8 million, whilst total pay-TV customers amounted to 5.8 million at end-September. Elsewhere, Rostelecom’s mobile user base increased by 8% y-o-y, to 12.7 million; the telco says that growth was as a result of the consolidation of the remaining 50% in Volgograd GSM during the third quarter of 2011.

Alexander Provotorov, president and CEO of Rostelecom, commented: ‘We continue to deliver growth despite the turbulent situation in the financial markets and the global economy. We continue to grow our broadband and pay-TV subscriber base. We have launched a large-scale rebranding campaign, centred on our successful transition to a single entity. The campaign addresses the need to have a single, unified Rostelecom brand by the end of 2012, to replace the dozens of brands that currently represent the company. We continue to pursue selective acquisitions of local market leaders, and we completed two more important transactions during the quarter, increasing our stakes to 100% in each of our two mobile operators in Russia. In addition to this, we recently signed an agreement with Yota, to jointly develop and utilise fourth-generation wireless networks and we expect to launch 4G services as a mobile virtual network operator (MVNO) in the near future. We are on track to achieving the ambitious targets outlined in our strategy by 2015’.

Russia, Rostelecom