Rostelecom 1Q15 revenues drop 1%; net income slumps 17%

22 May 2015

Russian national operator Rostelecom has reported revenues of RUB71.710 billion (USD1.438 billion) for the three months ended 31 March 2015, down 1% from RUB72.612 billion one year earlier. OIBDA for the first quarter decreased 3% to RUB24.525 billion from RUB25.177 billion, while net income slumped 17% to RUB2.143 billion from RUB2.575 billion. Rostelecom attributed the weaker bottom line to ’the consolidation of losses from affiliated companies, particularly T2 RTK Holding, which is now actively constructing networks and integrating the mobile assets which were transferred to the JV with Tele2 Russia’. Meanwhile, CAPEX for the first quarter more than doubled, increasing from RUB7.581 billion to RUB15.448 billion.

In operational terms, the number of broadband subscribers grew 4% year-on-year to 11.2 million, of which 10.5 million are residential connections. Meanwhile, fibre-optic broadband users increased 27% y-o-y to 5.4 million. Elsewhere, wireline users dropped 9% on an annualised basis, falling to 23.7 million. Finally, pay-TV customers grew 7% y-o-y to 8.1 million, of which 2.9 million were IPTV subscribers.

Russia, Rostelecom