Rostelecom Q2 revenues up 13%

7 Aug 2020

Russian fixed line giant Rostelecom has reported its Q2 2020 results including revised 2019 pro forma figures for recently consolidated cellco Tele2 Russia. The group’s total revenue grew by 13% year-on-year to RUB127.3 billion (USD1.74 billion) with operating income before depreciation and amortisation (OIBDA) up 15% to RUB48.8 billion, pushing the OIBDA margin up by 0.8 percentage points to 38.3%. Quarterly net profit also increased, by 32% y-o-y to RUB7.7 billion. CAPEX reached RUB24.7 billion (19.4% of revenues) in April-June 2020, up from RUB18.3 billion (16.2% of revenues) in the same period of 2019.

Residential fixed broadband internet subscribers grew by 2.5% y-o-y to 12.31 million at 30 June 2020, while B2B internet accesses increased by 6.2% to 807,000, with B2B VPN accounts up 10.2% to 270,000. IPTV subscribers increased by 7.0% to 5.81 million, although Rostelecom’s local telephony subscribers decreased by 10% to 14.9 million. The group’s number of ‘active mobile internet users’ grew by 28.1% y-o-y, although volume figures were not reported for either Tele2 or the Rostelecom MVNO-based mobile service on the Tele2 network.

Mikhail Oseevskiy, President of Rostelecom, commented: ‘Our strong financial and operating results for the second quarter of this year evidence our resilience and successful passage through a difficult spring and early summer period, where the general population and business as a whole have faced unprecedented challenges relating to quarantine measures, the widespread transition to online and severe economic uncertainty.’ He also announced: ‘We are seeing the first signs of recovery in economic activity for our clients, many of whom are projecting a return to growth in the coming quarters. This will lead to an expansion of work being carried out to digitise various industries and aspects of people’s daily lives. By the year-end we plan to go to the board of directors and present to the market an updated strategy that will set more precise goals, taking into account the inclusion of Tele2 Russia as a fully consolidated member of the group.’

Russia, Rostelecom, Tele2 Russia