5% improvement in Rostelecom’s Q3 revenues

2 Nov 2018

Russian nationwide fixed line operator Rostelecom has posted a 5% year-on-year rise in third-quarter 2018 revenues to RUB79.4 billion (USD1.2 billion), with operating income climbing 19% to RUB10.9 billion. Operating income before depreciation and amortisation (OIBDA) was up 9% at RUB27.3 billion and the OIBDA margin grew by 1.4 percentage points to 34.4%; net profit in the three months to 30 September 2018 increased by 46% y-o-y to RUB5.7 billion. Q3 2018 CAPEX jumped by 35% to RUB16.3 billion (20.6% of revenue) from RUB12.1 billion (16.0% of revenue) in 3Q17. Mikhail Oseevsky, president of Rostelecom, declared: ‘These achievements were mainly driven by the expansion of the digital and content services segment, which showed remarkable progress, and now accounts [for] 55% of revenue.’

Consumer fixed broadband internet subscribers rose 1% y-o-y to 12.0 million in September 2018, with total B2B ‘broadband and VPN’ lines increasing by 7% to 1.0 million. IPTV subscriptions climbed 5% to 5.1 million, while the number of local telephony subscribers decreased by 9% to 17.8 million. Rostelecom’s mobile service (offered as an MVNO over the network of its part-owned associate Tele2 Russia) reached 1.1 million subscribers by end-September 2018, a 58% rise in twelve months.

Russia, Rostelecom