Rostelcom FY14 revenues up 3% to RUB298.9bn

17 Mar 2015

Russian national operator Rostelecom has reported revenues of RUB298.94 billion (USD4.80 billion) for the twelve months ended 31 December 2014, up 3% on an annualised basis, from RUB290.74 billion previously. The above figures encompass Rostelecom’s ‘continuing operations’, while the company’s consolidated revenues take into account the transfer of the company’s mobile assets to the joint venture (JV) with Tele2 Russia (see below). Consolidated revenues dropped from RUB325.70 billion in 2013 to RUB310.92 billion in 2014. Meanwhile, OIBDA dropped 2% from RUB104.15 billion to RUB102.47 billion year-on-year, while net income plummeted 51% from RUB26.69 billion to RUB13.18 billion. CAPEX for 2014 was reported at RUB53.81 billion, or 18% of the company’s revenue.

In its filing, Rostelecom confirmed that the consolidated results for full year 2014 include the operating results of the company’s mobile subsidiaries for the first three months of 2014 (January-March), and the results of JV CJSC RT-Mobile for the first seven months of the year (January-July). In the third quarter of 2014, after the deal with Tele2 Russia was completed, Rostelecom received a one-off gain of RUB22 billion reflecting fair valuation of investments into the JV.

In operational terms, Rostelecom saw its wireline user base drop 8% from 26.5 million at end-2013 to 24.4 million twelve months later, while broadband subscriber numbers grew 6% from 10.6 million to 11.2 million; of which 10.5 million were residential accounts. Elsewhere, IPTV customers increased by 500,000 (or 24%) to 2.7 million.

Russia, Rostelecom