Rostelecom ‘agrees conditions’ for Tele2 buyout; sales up 5%, 16% at fixed, mobile operators

13 Mar 2019

Russian national fixed line operator Rostelecom has reported its full-year 2018 financial results, with revenue increasing by 5% to RUB320.2 billion (USD4.869 billion) and operating income before depreciation and amortisation (OIBDA) rising by 4% to RUB100.9 billion. The telco’s net profit increased by 7% to RUB15.0 billion and annual CAPEX grew 20% to RUB73.2 billion. Total fixed broadband customers reached 12.764 million (including 12.009 million consumer/755,000 B2B subscribers) at 31 December 2018, up from 12.729 million at end-2017. Rostelecom’s MVNO-based mobile users grew to 1.188 million from 828,000 twelve months previously, while IPTV subscribers climbed from 4.849 million to 5.285 million in the year.

News site Vedomosti quotes Rostelecom’s CEO Mikhail Oseevskiy as saying that the telco has ‘agreed on the conditions’ on a plan to take a 100% stake in its 45%-owned associate mobile network operator Tele2 Russia, with the parties now ‘discussing technical issues’, but further details of the deal are awaited. The ‘instructions necessary to prepare the transaction’ have been sent to the relevant state ministries and departments, according to the representative of Deputy Prime Minister Maxim Akimov. Tele2 Russia posted 16% annual revenue growth to RUB143 billion in 2018, with EBITDA jumping 43% to RUB43.7 billion.

Russia, Rostelecom, Tele2 Russia