Rostelecom’s revenues grow 10% in Q1

20 May 2020

Russian fixed line giant Rostelecom has reported its consolidated results for the first quarter of 2020, reflecting the first contribution from the full integration of mobile operator Tele2 Russia, after the state-backed group raised its stake in the cellco from 45% to 100% on 17 March. Consolidated revenue grew by 10% year-on-year to RUB121.6 billion (USD1.7 billion) in 1Q20 with underlying mobile revenues up 16%. Operating income before depreciation and amortisation (OIBDA) improved by 12% to RUB47.1 billion and quarterly net profit increased by 1% to RUB7.7 billion. CAPEX excluding state programmes decreased by 15% y-o-y to RUB22.0 billion.

Rostelecom’s residential fixed internet subscribers grew by 1% y-o-y to 12.2 million at the end of March 2020 while it reported that B2B ‘internet and VPN’ subscribers rose 6% to 1.1 million. Pay-TV subscribers grew by 3% to 10.5 million including IPTV subscribers which increased by 6% to 5.7 million. Active mobile data users increased by 36.1% y-o-y as mobile data traffic jumped by 69%. The number of fixed local telephony subscribers decreased by 10% to 15.3 million.

Regarding integration of Tele2 Russia, Rostelecom stated that it was ‘getting closer to creating Russia’s largest integrated provider of digital services, capable of significantly improving financial performance, strengthening and consolidating our leading position in the Russian telecommunications, IT and other high-tech industries.’

Russia, Rostelecom, Tele2 Russia