Rostelecom 3Q13 revenues up 2% to RUB78.2bn

21 Nov 2013

Russia’s state-owned telecoms giant Rostelecom has reported consolidated revenues of RUB78.22 billion (USD2.38 billion) for the three months ended 30 September 2013, representing an increase of 2% year-on-year. OIBDA, however, remained stable at RUB29.40 billion. Operating income for the third quarter edged up 1% to RUB13.26 billion, while net income increased 12% on an annualised basis, growing from RUB9.39 billion to RUB10.54 billion. CAPEX amounted to RUB13.94 billion, equivalent to 17.8% of the firm’s quarterly revenue.

In operational terms, Rostelecom’s total broadband subscriber base increased 10% y-o-y to 9.8 million, while fixed line telephony subscribers decreased 6% over the same period to 25.9 million. Mobile users grew 4% to 14.1 million, while IPTV subscribers demonstrated the biggest rise, increasing 49% y-o-y to 1.8 million. Rostelecom notes that its IPTV user base has since passed the two million mark.

Sergey Kalugin, president of Rostelecom, commented: ‘Efforts taken to strengthen our market positions in key segments and improve on our internal efficiency led to positive results during the quarter. Not only do we continue to grow our broadband and pay-TV subscriber base, but we also increased our net income during the quarter. Furthermore, all the necessary corporate procedures associated with the reorganisation of Rostelecom have been successfully executed, with Svyazinvest and a range of subsidiaries now merged with Rostelecom. The company now has a simplified shareholder base, cross-ownership has been eliminated and the state, together with the Bank for Development and Foreign Economic Affairs, hold direct ownership of more than 51% of Rostelecom’s voting shares’.

Russia, Rostelecom