Rostelecom’s revenues grow 8% in Q1

16 May 2018

Russian national fixed line operator Rostelecom posted an 8% pro forma year-on-year increase in revenues to RUB76.2 billion (USD1.2 billion) in the first three months of 2018, reporting that the ‘digital segment’ (comprising broadband, pay-TV, VPN, VAS and cloud services) contribution to total revenue reached 53% in the quarter. Pro forma EBITDA was up marginally, by 0.1% to RUB23.2 billion in January-March 2018, and Q1 net profit increased by 15% to RUB3.9 billion. Quarterly CAPEX decreased by 15% y-o-y to RUB15.1 billion.

Rostelecom’s fixed broadband subscribers grew by 2% y-o-y to 12.7 million at 31 March 2018, as the underlying consumer base rose by 2% to 12.0 million, whilst the number of broadband users connected by fibre-optics increased by 7% to 7.8 million (65% of the overall subscriber base). Pay-TV subscribers grew by 5% to 9.9 million, including IPTV subscriptions which increased by 12% to 5.0 million. Rostelecom’s mobile service, based on an MVNO hosted by Tele2 Russia, saw a near-fourfold rise in customers over twelve months to reach 900,000 by end-1Q18. The telco’s fixed local telephony subscribers decreased over the same period by 8% to 18.7 million.

Russia, Rostelecom