Russian national fixed line operator Rostelecom reported that its revenues increased by 5% to RUB337.4 billion (USD5.1 billion) in full-year 2019, while operating income before depreciation and amortisation (OIBDA) grew by 6% to RUB106.5 billion. Annual net profit improved by 10% to RUB16.5 billion. Twelve-month CAPEX excluding state programmes (e.g. state-funded universal service projects) increased by 22% to RUB71.8 billion (21.3% of revenue). Fixed broadband customers increased by 2% year-on-year to 13.2 million at 31 December 2019 while in the same period IPTV subscribers grew 6% to 5.6 million, as fixed local telephony users dropped 10% to 15.7 million. Users of Rostelecom’s MVNO-based mobile service (over the Tele2 Russia network) climbed 41% y-o-y to 1.7 million.
Rostelecom is in the final stage of consolidating 100% of its part-owned mobile subsidiary Tele2 Russia, expected to complete this month. After closing the deal, the telco plans to review its group business strategy ‘to set new ambitions and targets, focusing on the development of new products and technologies, including 5G networks’.
In 2020 Rostelecom expects both group revenue and OIBDA to grow by at least 5% on a standalone basis (excluding the contribution of Tele2 Russia and another acquisition, DataLine). CAPEX is expected to be within the range of RUB70–RUB75 billion (excluding state programmes).