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ER-Telecom

Company

Content

Revenue and Net Profit millions Thousand rub

Assets

Owners

+ ER-Telecom Holding (Дом.ru)

ER-Telecom Holding Ltd — operator of telecommunication services in the largest Russian regions, the supplier of triple-play of services: cable television (Divan-TV), continuous access in the Internet for individuals ("Дом.ru") and the organizations, the IP telephony and telephone communication of "GORSVYAZ". Basic activities of the company are implemented in each city based on the City Universal Telecommunication Network built on "optics to the house" technology.

Owners

The holding for 68% belongs to the Perm financial and industrial group of Andrey Kuzyaev, 9% are owned by Baring, 16% - by management. Another 7% of stocks of provider belong to Enforta company which received this packet as a result of the transaction on sale of the assets to ER-Telecom.

Assets

  • The LoRaWAN-network of ER-Telecom is registered in the uniform list of networks of an operator class and has the international NetID - 52, providing an opportunity to provide roaming
  • the telecommunication platform of Holding is created on the basis of the platform of operator level of Actility company, solution provider for the high-loaded LoRaWAN-networks

2012

For the end of 2012 ER-Telecom took the second place among the Russian access statements in the Internet after Rostelecom. Its market share made 11.2 percent, or 2.45 million subscribers.

The operator provides services of broadband access (broadband access) in the Internet and cable television in 17 cities of the Volga region, the Urals and Siberia — in the amount of 4 million households, occupying 39% of the market of cable TV and 32% of the ShPD market. The company takes the fourth place in Russia as on number of subscribers of broadband access (according to AC&M Consulting), and by the number of subscribers of paid TV (iKS-Consulting).

For December 31, 2012 the general subscriber base of the company made 3,009 thousand apartments. The gain of a subscriber base in comparison with 2011 made 644 thousand quarter or 27%.

The company renders services under brands:

  • cable television of Divan-TV,
  • telephony of "GORSVYAZ",
  • services for corporate clients ER-Telecom,
  • Broadband access in the Internet of "ДОМ.ru"

Дом.ru Business

"Дом.ru Business" - a corporate brand of the Russian telecommunication holding "ER-Telecom" providing a full range of services of triple play - broadband access in the Internet, cable and HD television, the fixed telephone communication. Package offers form from basic services of communication (broadband and Wi-Fi Internet access, telephony, cable television) and cloud solutions (video surveillance, cloud automatic telephone exchange).

In 2013 the operator submitted the industry offers developed taking into account specifics of the enterprises of the service industry, retail, public catering and also offices of the companies of small and medium business.

Geography of the implemented projects "Дом.ru Business" - 56 cities, more than 43 thousand points connected to the Internet and 10 thousand points connected to telephony.

Services are provided based on own city universal telecommunication networks (CUTN) constructed from scratch and according to uniform standards in each city of presence on "optics to the house" technology. Networks are reliably reserved, their working capacity in the round-the-clock mode is analyzed from the uniform Center of monitoring that allows to react to possible failures proactively. The indicator of fault tolerance of network of the company - 99.9% - is at the level of leaders of the European telecom market.

Performance Indicators

2019

Growth of net profit by 26% up to 2,644 million rubles.

On April 7, 2020 TAdviser reported to JSC ER-Telecom Holding (TM "Дом.ru", "Дом.ru Business") the consolidated financial results in 12 months 2019. The consolidated revenue increased by 13% in comparison with the same period of 2018 and reached 44,873 million rubles.

ER-Telecom increased net profit by 26%

The indicator of OIBDA increased by 33% in comparison with 2018 to 17,078 million rubles. Profitability of OIBDA made 38%.

Net profit was 2,644 million rubles, having increased by 26% in relation to the same period of 2018. CAPEX2 increased by 32% in comparison with the same period of 2018 to 10,351 million rubles. The net debt for December 31, 2019 made 44,443 million rubles.

Revenue of B2B increased by 20% in comparison with a previous period and made 16,126 million rubles. In turn, revenue of B2C grew by 9% up to 28,747 million rubles.

The consolidated financial performance for 2019 (million rubles). Without taking into account IFRS (IFRS) 16
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The company develops in full accordance with the approved strategy. In 2019 at the advancing rates revenue grew in segments of B2C and B2B. Demand for our digital products steadily increased. A main growth driver – B2B segment. The company participates in the state program of elimination of digital inequality. We connect socially important objects of the country to the Internet, in full fulfilling the undertaken obligations,
notes Andrey Kuzyaev, the President of JSC ER-Telecom Holding
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Growth of revenue in the first half of the year for 11% to 21,438 million rubles

On August 15, 2019 ER-Telecom Holding (TM "Дом.ru", "Дом.ru Business") announced the consolidated financial results (unaudited) according to IFRS for the first half of the year 2019.

ER-Telecom Holding increased revenue for the first half of the year 2019 by 11%

The consolidated revenue increased by 11% in comparison with the same period of last period and reached 21,438 million rubles. The indicator of OIBDA increased by 35% in comparison with the last period to 8,486 million rubles. Profitability of OIBDA made 40%. Net profit was 1,400 million rubles, having increased by 37% in relation to the same period of last year.

CAPEX increased by 37% in comparison with the same period of last year to 3,910 million rubles. The net debt for June 30, 2019 made 40,856 million rubles. Revenue of B2B increased by 15% in comparison with a previous period and made 7,378 million rubles. Revenue of B2C grew by 9% up to 14,060 million rubles.

History

2020

Creation of 14 interregional branches instead of 38 on the cities

JSC ER-Telecom Holding completed process of integration of managerial structure. It became known on July 3, 2020. Now the company has 14 interregional branches (MRF) instead of former 38 on the cities. Directors of interregional branches will submit directly to the president of ER-Telecom Andrey Kuzyaev.

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Process of transformation of the company started in 2019. It is evolutionary process. It is directed to simplification of a management system and fall forward of adoption of key solutions in the companies, - the representative of the press service of ER-Telecom commented on changes in structure.

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According to him, 90% of local heads who did not head interregional branches remained in holding. The others asked to leave the company. Dismissed including the branch director "ER-Telecom of Holding" in St. Petersburg Georgy Harchenko. It was confirmed by three sources in the company. The press service of ER-Telecom could not answer to what positions ex-heads of regional offices of the company passed.

According to two sources, the branch in St. Petersburg was a part of the created interregional branch "Severo-Zapad". Heads it since July, 2019 Alexander Motrich.Moscow MO Directs interregional branch "i" since September, 2019 Vitaly Klishin, MRF "South" is headed by Nikolay Gorbanov. In MRF "Black Earth" Andrey Roldugin is appointed the head (earlier was branch director v Voronezh). The Golden Ring branch (the cities Sergiyev Posad Pereslavl-Zalessky, Rostov Veliky Yaroslavl Kostroma Ivanovo, Suzdal Vladimir) was headed by Vasily Sereda - the ex-director of the Yaroslavl branch.

MRF "Central Volga area" directs Anton Katkov. Lower Volga area is headed by Evgenia Gorevaya, MRF in the Republic of Tatarstan - Ramil Garifullin. MRF "South Ural" was headed by the former director of the Volgograd branch Ivan Yagupov, MRF "Ural" - Ilinga Kan.

In MRF "Western Siberia" (Omsk, Tyumen, Kurgan) work of employees will be coordinated by Stanislav Dariyenko - earlier held a post of the branch director "East", it integrated all Siberia. In MRF "Siberia" (The Novosibirsk and Kemerovo regions, Altai Krai, Altai Republic and Khakassia) to direct appointed Alexey Linkov, in MRF "Eastern Siberia" (The Irkutsk region, Buryatia and Krasnoyarsk Krai) - Gleb Stupin (earlier directed branch in Irkutsk). The vacancy on a post of the head of MRF "Far East" is still open.

The source reminded that Andrey Semerikov was appointed to the position of the chairman of the board of directors of ER-Telecom. It replaced Elena Ivashentseva who will continue work in Board of Directors of the company. Earlier Semerikov held a position of the vice-chairman of Board of Directors[1].

Purchase of the Altai Internet service provider "Dianet"

At the end of June, 2020 it became known of sale of Dianet "ER-Telecom to Holding". The cost of the transaction does not reveal. Read more here.

Andrey Semerikov's appointment chairman of the board of directors

TAdviser announced 29 years 2020 of JSC ER-Telecom Holding (TM "Дом.ru" and "Дом.ru Business") Andrey Semerikov's appointment to a position of the chairman of the board of directors of the company. Read more here.

Agreement with " Yandex.cloud " on the help of IoT-solutions to the Russian developers

On June 15, 2020 it became known that " Yandex.cloud " will make development of solutions based on Internet of Things (IoT) more simply and quicker. For this purpose the company signed the agreement with partners on providing discounts to developer companies to order of parts, the help in assembly and testing of the equipment, connection to communication channels for data transmission. Developer companies will receive termless connection up to 10 devices on one base station to the portal of LoRaWAN developer of ER-Telecom network. Read more here.

Accession of Strela Telecom

On April 3, 2020 the ER-Telecom company reported TAdviser that was its part provider "Arrow Telecom". Since April, 2020 the companies begin work in Ulan-Ude under the uniform brand "Дом.ru Arrow". In more detail here.

Inclusion in the list of the systemically important organizations

In March, 2020 the Government commission on increase in stability of the Russian economy included ER-Telecom in the list of the systemically important organizations. Read more here.

Accession "5 Dzhi Vayfay" to the general structure

On January 17, 2020 the ER-Telecom Holding company (TM "Дом.ru" and "Дом.ru Business") announced accession of subsidiary company 5 Dzhi Vayfay LLC in the general structure of the enterprise. Read more here.

2019

Connection of 610 thousand apartments

On March 4, 2020 "Дом.ru" reported that in 2019 it connected 610 thousand apartments to the network. The technical capability to connect the high-speed Internet, digital TV and the home phone number appeared at inhabitants of 35 regions of Russia. In 2020 the project will be continued. The operator is going to increase mounted capacity by 500 thousand households. The most large-scale projects will be implemented in St. Petersburg (80,000 apartments), Perm (39,500), Kazan (30,000), Rostov-on-Don and Izhevsk (in both on 22,000 apartments).

"Дом.ru"

For March, 2020 the network, with a total length of 52 thousand km, covers more than 15 million apartments. Regarding the cities it already covers up to 80% of housing stock therefore in 2020 the operator will focus on provision of services in new buildings and the private sector. The share of construction of network in cottage settlements will for the first time make up to 40% of project scopes. By the end of 2020 penetration of networks into infrastructure of housing stock in the cities of presence will reach 85%.

Besides, "Дом.ru" will for the first time build networks in Tambov, Ulan-Ude, Votkinsk (Udmurtia) and Tchaikovsky (Perm Krai). In the markets opened for themselves the operator will provide modern digital TV, the Internet with capacity to 1 Gbps and all range of services on its basis – the smart home for 60 thousand households.

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In two years we came to cruising speed – we increase mounted capacity on average by 500-700 thousand apartments a year. It is an important part of strategy of organic growth of the company. Our clients can already go on-line at a speed up to 1 Gbps and watch up to 226 channels of digital television. In apartment houses along with the main services of "Дом.ru" it is ready to install the smart home system - video on-door speakerphones, house video surveillance and a control system of remote access (sensors of gas, water, smoke, the movement, opening of windows and doors) - which can be managed from mobile application, being worldwide. Only Internet access is necessary,
notes Igor Levchenko, the director of construction management of JSC ER-Telecom Holding network (TM "Дом.ru", "Дом.ru Business")
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Start of the educational цифроваяграмотность.рф resource

On December 26, 2019 it became known that University 2035 and the Russian companies started the educational цифроваяграмотность.рф resource that residents of Russia could study free of charge safe and effective use of digital technologies and services.

According to the company, Megafon, Rostelecom, the Russian Railway, ER-Telecom, Sibur of IT, Academy of Rostec, Higher School of Economics National Research University, Rotsit and Russian Post, analytical center NAFI will be engaged in development of IT solutions, providing online content and also examination of its quality. University 2035 acts as the operator of the project. Read more here.

Acquisition of 100% of stocks of JSC Bing-TV

On December 25, 2019 TAdviser announced JSC ER-Telecom Holding (TM "Дом.ru Telemir") completion of the transaction on acquisition at municipality of Lipetsk 100% of stocks of JSC Bing-TV, the chief operator of area servicing on-door speakerphones and the systems of community reception of television. Read more here.

Investments into upgrade of network of 7.6 billion rubles

In December, 2019 JSC ER-Telecom Holding (TM "Дом.ru", "Дом.ru Business") announced start of the federal project on upgrade of an optical network of broadband access.

The project is expected 7 years, investments will make 7.6 billion rubles. The company will provide reliable access to modern digital services of 11 million families and will increase reliability of network to 99.99%, the level of the European standards of communication. It is the most considerable upgrade of network from the moment of the beginning of its construction and large investment into digital infrastructure of Russian regions.

In 2020-2022 thanks to upgrade 60% of ER-Telecom network will work at speed of 1 Gbps. The company upgrades the greatest number of households in St. Petersburg - here the gigabit Internet will be received by 2 million apartments. In Yekaterinburg, Samara, Nizhny Novgorod the gigabit Internet will appear in 500,000, and in Volgograd, Irkutsk, Saratov and Chelyabinsk - 400,000 addresses.

ER-Telecom the first in Russia in the 2000th years began to build fiber optic networks on "optics to the house" technology. Gradually it became the standard for the telecom industry.

Permanent growth of number of devices with Internet access (tablets, smartphones, Smart TV), consumption of "heavy" content in the FHD/4K formats, development of VR technologies, Internet of Things, online services, cybersports disciplines demanded upgrade and expansion of throughput capacity of communication channels. There will last "stock" which will appear as a result of upgrade for 7-10 years. Despite it, ER-Telecom lays the foundation for the subsequent upgrade of network to 10 Gbps already now.

The company will increase amount of fibers in transport and trunk networks, will replace outdated switches, and with gigabit, liquidates copper "perekida" between houses, in 70% of entrances will replace copper cables with optical.

Also ER-Telecom Holding will carry out reservation of network that will improve uninterrupted operation of providing services. Upgrade will concern also networks of acquired assets.

The memorandum with SAP of creation of competence center for exchange of experience

JSC ER-Telecom Holding and SAP CIS signed on June 7, 2019 the memorandum of technology partnership. The companies are going to create joint competence center for studying of technologies of SAP and their further application in telecom industry.

The agreement also provides creation of the working group, holding seminars and workshops for specialists ER-Telecom.

ER-Telecom for 4 years spent for merges and absorption of 15-16 billion rubles

On May 31, 2019 it became known that ER-Telecom (Дом.ru brand) in four years invested in merges and absorption (M&A) 15-17 billion rubles from the planned 30-33 billion rubles. The president of the company Andrey Kuzyaev told about it in an interview to Kommersant. At the same time in 2018 the investment volume of the company into this direction was only 6 billion rubles from the planned 17 billion rubles.

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I do not speak about future transactions, but they will be, it is a part of our operating activities. The matter is that when we speak about transformation, a didzhitalization of the telecom industry, we should understand that one of drivers of process is consolidation. The small companies are not capable to become drivers of growth — Kuzyaev said.
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According to him, the company is going to build in addition network for 5-6 million households. The direction of a domofoniya at the expense of which ER-Telecom expects to receive another 5% of growth will also become growth source in the sector of b2c.

Andrey Kuzyaev also announced the course of implementation of requirements of the Yarovaya Law. According to him, initial cost estimations in the company — 36 billion rubles in five years — decrease.[2]

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In principle in our company we in a year spend about 1 billion rubles for the questions connected with state security and laws on security of the Internet. This amount has a tendency to growth, but at the same time from regulatory authorities there is an accurate line: when they see that there is an action program, they adopt it, and we normally work on implementation. But it is clear that 1 billion rubles are a huge money for us, these are nearly 10-15% of investments into organic growth — the president of ER-Telecom emphasized.
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Program of upgrade of campus, house nodes and intra house distribution networks

"Дом.ru" will increase service quality to more than 25,000 houses

In 2019 within running repair the operator is going to improve service quality to more than 25,000 houses on all cities of presence. The most large-scale works are planned in St. Petersburg (4,061 houses), Perm (2,150), Samara (1,970), Nizhny Novgorod (1,966), Yekaterinburg (1,326) and Irkutsk (1,281).

"Дом.ru" carries out works on campus and house nodes and also on intra house distribution networks. Until the end of the year on 11 thousand nodes technical specialists of the company will set uninterruptible power supply units, will replace rechargeable batteries, and on seven thousand - outdated optical receivers.

The address program of upgrade of network forms on the basis of the accidents given monitoring systems and systems of pro-active service (SAVIOUR) which the operator started at the beginning of last year for identification of problems on network to the address of the client.

The project of quality improvement of network was started in 2018, and until the end of December works were performed to 15,000 houses in all cities of presence of the company. Investments into the project at the end of 2018 made about 100 million rubles.

The court obliged ER-Telecom to transfer 49.2 million rubles of taxes into the budget

On March 7, 2019 it became known that the Seventeenth arbitration Court of Appeal recognized ER-Telecom Holding (Дом.ru trademark) by the violator of the tax law and obliged the company to pay 49.2 million rubles to the budget. The debt of telecommunication holding on a value added tax and also penalty fee and penalties included in this amount of MIFNS on the largest taxpayers of Perm Krai.

According to materials of court, fall of 2017 MIFNS carried out exit tax audit of activity of ER-Telecom from 2013 to 2015.

Tax inspectors established that at ER-Telecom there was no "real economic relationship" about Infocomm, Online of Technology, "IT of technology" and Galaksi Media.

Representatives of telecom provider insisted that agreements were signed with these legal persons for providing to subscribers ER-Telecom of access to content at higher speed. What tax specialists answered that the agreement on placement of the additional hardware used for fall forward of content downloaded by subscribers, the taxpayer concluded about Fininvestproyekt which "has someone no relation to disputable partners".

Partners had also no exclusive rights to the Shareman and Futuron Internet resources as they are in free access, according to case.

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ER-Telecom Holding", having necessary resources, fixed assets, skilled staff, had an opportunity to independently perform the works necessary for fall forward of content downloaded by subscribers.
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The second episode of obtaining unreasonable tax benefit by ER-Telecom was connected with acquisition of an advertizing and souvenir and printed material by provider at Intercom and Synthesis. Tax specialists could prove that these partners did not perform real business activity and the actual contractor was Cyrillics Printing house, applying a simplified tax system and not paying the VAT.

The arbitration court of Perm Krai nullified the decision of tax authority, however the Court of Appeal supported a position of tax authority and cancelled the lower court decision.

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In the agreements provided to case papers, additional agreements and acts there are no links and instructions to the speed of downloading by clients of content. If the sense of agreements consisted in a possibility of use of high-speed connection, this fact needed to be recorded directly in the agreement, with indication of specific parameters (first of all necessary speed) connections.
Victor Probichev, senior partner of the Moscow Bar "Barrows and partners"
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The provided MIFNS and proofs considered by court at decision on the second episode are not indisputable. On interrogations the staff of ER-Telecom explained that they found partners for production of an advertizing and souvenir and printed material in the Internet, however in the analysis tax specialists of checking accounts Intercom and Synthesis recorded lack of advertizing payments on promotion of services of these partners.

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In spite of the fact that it is represented a good argument of tax authority, it is not indisputable. That data were present at open information resources, sometimes it is enough only existence of any response about an economic subject.
Victor Probichev, senior partner of the Moscow Bar "Barrows and partners"
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According to Ekaterina Boldinova, the partner of Five Stones Consulting law firm, the tax inspection the progress of the case worked well in court of perelomit appellate instance and "color with business activities of the taxpayer entirely black paint".

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Circumstances of an episode on the relations with "phony companies" remind circumstances of the majority of such disputes where the taxpayer could not prove manifestation of due discretion and reality of relationship with disputable partners of additional accrual of the VAT. At the same time a set of claims to partners of the taxpayer quite standard: documents are signed by unidentified persons, directors on interrogations from participation in activity of the disputable companies disowned. I am afraid that in the cassation the taxpayer should make very powerful efforts to achieve at least the direction of case for additional consideration.
Ekaterina Boldinova, the partner[3]
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2018

Growth of revenue by 18%

On March 25, 2019 ER-Telecom Holding (TM "Дом.ru", "Дом.ru Business"), the national operator of information and communication services, shared with TAdviser the consolidated financial results in 12 months 2018.

So, the consolidated revenue of holding in 12 months 2018 grew by 18% in comparison with the same period to 39,739 million rubles. The gain was provided for 8% with organic growth and by 10% transactions M&A, specified in the company. In turn, the indicator of EBITDA grew by 30% in comparison with the last period to 12,733 million rubles. Profitability of EBITDA made 32% that is result of the held events for achievement of the economic and balanced growth. Net profit was 2,110 million rubles CAPEX increased by 11% in comparison with the same period of last year to 7,693 million rubles. The net debt of holding for December 31, 2018 made 39,976 million rubles.

Revenue of B2B increased by 21% in comparison with a previous period to 13,413 million rubles. Revenue of B2C grew by 16% to 26,326 million rubles. The number of active subscribers of B2C increased by 10.4% for 2018. For the end of 2018 the subscriber base of B2C made 7,002 thousand subscribers.

In 2019 ER-Telecom Holding predicts revenue gain at the level of 14% and growth rate of EBITDA at the level of 23%.

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I am satisfied with results of a company performance in 2018. We a year executed the five years' strategy for doubling of scales of business earlier. EBITDA in 2018 grew at the advancing rates in relation to revenue — Andrey Kuzyaev, the president of ER-Telecom Holding commented on results of 2018.
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In 12 months 2018 of JSC ER-Telecom Holding it was reorganized by accession of Vest Koll SPB LLC to it (St. Petersburg), Kredolink LLC (St. Petersburg), Infocentre LLC (Sosnovy Bor, the Leningrad Region), Enlink Telekommunikatsii LLC (Ryazan), Intel LLC (Ryazan), Saturn Internet LLC (Perm), TV Invest LLC (Perm), Перм.ру LLC (Berezniki, Perm Krai), JSC Akado-Ekaterinburg (Yekaterinburg), JSC TKS Neva (St. Petersburg), Kolambiya Telecom LLC (Volgograd), Telemir Company LLC (Lipetsk), Michurinsk-Svyaz-TV LLC (Michurinsk), AVIKOM LLC (Irkutsk), Gorodskiye Internet seti LLC (Tomsk), TOMTEL LLC (Tomsk), Tomtelekom LLC (Tomsk), Telenet LLC (Usolye-Sibirskoye), Radio Resource LLC (Ryazan), Bryanskiye Kabelnye Seti LLC (Bryansk), Stom i K LLC (Bryansk), Bryansk Svyaz Telecom LLC (Bryansk), Bryansk Svyaz-TV LLC (Bryansk), Kamsan-service LLC (Krasnoyarsk).

As a result of reorganization JSC ER-Telecom Holding became the legal successor of all rights and obligations of the attached companies. Besides, in July, 2018 the operator also completed reorganization in the form of accession to the subsidiary of Novotelekom LLC of the Novosibirsk branch selected from ER-Telecom.

"Дом.ru" started 24 new TV channels in 2018. The total quantity of channels in digital TV "Дом.ru TV" increased to 219, 85 of them broadcast in the HD format.

Internet traffic volume in Дом.ru network in a year grew by 21% in comparison with 2017 and reached more than 2.9 million Tbyte that is comparable to viewing 725 million movies in Full HD quality. Every second through network of the company there pass 2.6 Tbit of traffic (in 2017 — 2.2 Tbit). Growth happens because of increase in number of clients of "Дом.ru", the number of devices with Internet access (tablets, smartphones, Smart TV), consumption of "heavy" content in the FHD/4K formats, increases in speed on rates and development of online services, cybersports disciplines.

In June, 2019 the shareholder of JSC ER-Telecom holding decided to leave unallotted the net profit of society in the amount of 1.6 billion rubles. Also payment of remuneration to board members and audit committee will not be made.

Traffic in Дом.ru network in a year grew by 21%

In 2018 Internet traffic volume in Дом.ru network (enters into ER-Telecom holding) reached 2.9 million Tbyte that is 21% more, than the previous year. Every second through network of the operator there pass 2.6 Tbit of traffic (in 2017 – 2.2 Tbit).

The greatest share in the total amount of traffic — 42% — occupy video (video hostings, online movie theaters), says "Дом.ru". On the second place — 21% of traffic — social networks, on the third (15%) — game resources. The biggest growth — for 5% — is recorded in a segment of game and okoloigrovy resources: Twitch, Steam, Wargaming, etc. So, for example, traffic on these resources during the The International 2018 tournament on Dota 2 exceeded traffic of social network "VKontakte".

Most of all traffic was consumed by Internet users of "Дом.ru" in St. Petersburg, Nizhny Novgorod, Irkutsk, Samara and Perm — about 35% of a total quantity are the share of them.

The company notes that the volume of traffic grows due to increase in subscribers of "Дом.ru", the number of devices with Internet access (tablets, smartphones, smart TV), consumption of "heavy" content in the FHD/4K formats, increases in speed on rates and development of online services, cybersports disciplines.

Start of services for business under the Дом.ru Business brand in Moscow and the Moscow region

On November 21, 2018 JSC ER-Telecom Holding (TM "Дом.ru Business"), national telecom operator, announced the beginning of providing service to corporate clients under the Дом.ru Business brand in Moscow and the Moscow region.

Proceeding from high potential for development and deployment of digital products and services in the b2b market, the company stakes on expansion of a product line for corporate clients, including on development of smart video surveillance, cloud telephony (OATS), Wi-Fi and also services based on IoT (Internet of Things). A basis of the offered telecom infrastructure is the stable Internet from "Дом.ru Business".

In the regional market of Moscow and the Moscow region the operator started packaged solutions based on high-speed links in combination with VAS services for the most different industries of business. Now clients of medium and small business have an opportunity to connect the joint telecom services on profitable terms.

On the website moscow.b2b.domru.ru clients can independently pick up a complex of necessary cloud solutions for business development or select one of the offered packets depending on a field of activity of the company.

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Start of the Дом.ru Business brand is the beginning of the next stage of customer relations in the Moscow market. Growth strategy and our experience with clients of federal level will allow to create the telecom environment for representatives of small and medium business. High examination of business processes, high-quality service and cloud computing are the key to creation of convenient innovative solutions.
Konstantin Beyyusov, the commercial director of JSC ER-Telecom Holding in Moscow and the Moscow region
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Transformation of organizational model

ER-Telecom Holding, the national operator of information and communication services, announced on October 11, 2018 the changes in an organization structure of the company aimed at strategy implementation of holding, ensuring positive client experience and focus on development of new digital products.

In particular, in the company the operational division which is responsible for sales, connection and service and also coordination of activity of branches of holding is created. The division of management of marketing and a product is also created.

Alexander Motrich is appointed to the position of the operating officer. To a position of the marketing director and to the product B2C — Andrey Chazov.

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Transformation of organizational model is intended to increase management efficiency, to simplify internal interaction and to create conditions for further dynamic development of the company. We aim at flexible adaptation under customer needs and to quick response to digital calls of the market — the president "ER-Telecom of Holding" Andrey Kuzyaev commented on changes.
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Transition to the uniform brand "Дом.ru Business" in 566 cities and settlements

ER-Telecom Holding companies (TM "Дом.ru Business") and Enfort, the national operator of information and communication services, announced on July 18, 2018 the beginning of provision of services to corporate clients under the uniform brand "Дом.ru Business" in all 566 localities and the cities of presence, including in Moscow, Kaliningrad, Vladivostok, etc. Earlier in these cities the company provided communication services under the Enforta brand.

ER-Telecom actively develops the b2b-direction. Proceeding from high potential for development, implementation of digital and innovation products and services in the b2b market, the company stakes on expansion of a product line for corporate clients, including on development of smart video surveillance, cloud telephony (OATS), Wi-Fi and also different services based on Internet of Things.

The operator renders communication services based on advanced technologies: optical network of FTTB, WiMAX broadband wireless access, radio bridge of E-Band, WNGN. Infrastructure "Дом.ru Business" allows to implement projects for the most different industries and spheres of business. Clients get access to full range of services and products of holding, irrespective of territorial location of business.

Completion of consolidation with Telemir

The ER-Telecom Holding company, the national operator of information and communication services, announced on April 9, 2018 completion of acquisition of 100% of Telemir LLC company. The cost of the transaction does not reveal. Read more here.

Completion of integration with Enforta

The Russian telecommunication holding "ER-Telecom" (a trademark in the market of corporate services "Дом.ru Business") and the telecom operator of Enfort in March, 2018 completed integration process. Since 2018 in the cities of presence "Business" in the b2b-market in a segment of medium and small business services are provided to corporate clients by Дом.ru under the uniform brand "Дом.ru Business".

According to representatives of ER-Telecom, this event is a crucial element of implementation of the concept of the integrated telecom operator and has a strategic importance for business of the company.

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Perception of the Дом.ru Business brand as the universal operator providing a broad spectrum of telecommunication services forms. The Business updated "Дом.ru" — qualitatively new provider of federal importance capable to support any technologies of wire and wireless Internet access irrespective of location of business of the client. Resources of the united company allow us to set ambitious goals, at the same time to provide high quality and reliability of the provided services, high quality of service of corporate clients — the director on B2B "ER-Telecom of Holding" (Дом.ru Business brand) Elena Ventslavovich commented on an event.
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The agreements signed earlier with Prestizh-Internet LLC (Enforta trademark) continue to work, performs the rights and fulfills duties of ER-Telecom Holding on them. In turn, the Enforta brand continues to be used for connection and service of federal and network clients.

"Дом.ru Business" renders communication services based on such technologies as: optical network of FTTB, WiMAX broadband wireless access, E-Band radio bridge. Infrastructure "Дом.ru Business" allows to implement projects for the most different industries and spheres of business. The operator offers not just communication services (the Internet, telephony, corporate networks), and individual complete solutions with a set of options for business — high-speed Internet access with content filtering and antiviruses on a subscription, the VPN networks protected from DDoS attacks, cloud telephony and video surveillance with services of analytics, Wi-Fi with additional marketing tools. The complex of telecom services complemented with easily scalable cloud services allows to build infrastructure of the organization in general, to automate and optimize business processes, to reduce costs and to increase sales.

Purchase of the Lipetsk operator "Telemir"

The telecommunication holding "ER-Telecom" announced on February 13, 2018 acquisition of the Lipetsk operator "Telemir". In the spring of the company intend to begin to work under the uniform brand "Дом.ru Telemir". Read more here.

2017

Growth of revenue by 19%

ER-Telecom Holding published on April 3, 2018 the consolidated financial results in 12 months 2017. The consolidated revenue increased for the reporting period by 19% in comparison with the same period of last year, having reached 33,700 million rubles. The gain was provided for 8% with organic growth and by 11% transactions M&A, explained in the company. The indicator of EBITDA grew by 18% one year prior to 9,639 million rub, at the same time profitability of EBITDA made 29%, having remained at the level of 2016.

Net profit "ER-Telecom of Holding" at the end of 2017 was 1,107 million rubles CAPEX decreased by 4% in comparison with the same period of last year up to 6,947 million rubles.

The net debt of the company as of December 31, 2017 made 32,824 million rubles — taking into account the exposed bank guarantees and the issued guarantees for the third parties.

Revenue of the B2C-direction grew by 17% up to 22,654 million rubles. The product strategy accepted by the company including is aimed at generation Z and means focus on development of digital products, services and mobility of use of services of the operator. The holding continues to develop a convergent product, OTT-services, to optimize mobile TV and product offers for gamers, noted in ER-Telecom.

The number of active subscribers of B2C increased by 11% for 2017. For the end of 2017 the subscriber base of B2C made 6,344.2 thousand subscribers.

In B2B segment revenue increased by 25% to 11,046 million rubles. In structure of revenue the share of B2B grew by 1 items — from 31% to 32%. According to holding, for all year revenue of B2B shows the advancing growth rate due to integration of the operators purchased earlier. With accession of assets there was also an expansion of a product portfolio of holding to a possibility of providing in all cities of presence of the company. Proceeding from high potential for development and deployment of digital and innovation products and services in the market of B2B, the company stakes on expansion of a product line for corporate clients, including on development of smart video surveillance, cloud automatic telephone exchange, Wi-Fi of PRO and also different services based on IoT.

At the end of 2017 in network of public Wi-Fi of Дом.ru telecom operator 72 million connections are registered in total. For a year of 16 million unique users consumed nearly 6.5 thousand traffic terabyte (or 1.4 million movies in HD). Most often residents of St. Petersburg (more than 18 million connections), Nizhny Novgorod, Perm (both more than 7 million), Yekaterinburg, Naberezhnye Chelny, Kazan and Saratov (more than 2 million) used Wi-fi Dom.ru network. Systemically increasing Wi-Fi a covering, "Дом.ru" in 2017 organized wireless access to network to 2.2 thousand new points.

In 2018 ER-Telecom Holding expects revenue gain at the level of 18% and growth rate of EBITDA at the level of 23%.

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In 2017 ER-Telecom showed the steady and stable growth corresponding to earlier stated plans and the approved growth strategy. The company managed to strengthen positions due to high-quality work of personnel, start of new offers, digital products and services and also M&A-сделок. Organic growth of the company is connected with completion of mounted capacity in the cities of our presence, the advancing growth rate of a B2B-segment due to development of new VAS services, digital products and services, including projects in Wi-Fi and IoT — Andrey Kuzyaev, the president of ER-Telecom Holding commented on results of year. — End of transactions on acquisition of large federal and regional operators of Novotelekom LLC, JSC TKS-Neva and JSC Akado-Ekaterinburg, Kolambiya Telecom LLC became some of the most significant events of year. These purchases influenced growth of a subscriber base of the company and expansion of network.
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According to Andrey Kuzyaev, 2017 became for holding in many respects sign. In September, 2017 the company made the decision to enter the adjacent markets and to start network of Internet of Things with a federal covering in 60 cities together with the technology partner of Actility during 2018-2019.

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We are satisfied with results of activity of holding in 12 months 2017, we are going to continue to implement earlier approved development strategy of the company and to create a strong digital brand on telecom market due to development and deployment of the innovation services and software solutions creating additional customer value — the president of ER-Telecom Holding added.
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Purchase of 100% in company TKS "Neva"

In October, 2017 JSC ER-Telecom Holding and AKADO group (enters into Renova Group) announced completion of the transaction on acquisition by ER-Telecom of 100% of TKS Neva Ltd entering into AKADO Group. The asset will allow to strengthen positions of ER-Telecom Holding in the territory of St. Petersburg, hope in the company. AKADO Telecom intends to focus on business development in the Moscow region.

"TKS "Neva" services more than 70 thousand private clients and over 500 legal entities. Telecommunication infrastructure of the operator is generally concentrated in not covered by ER-Telecom areas that allows to provide the maximum covering of the city with services of holding. Merger of companies will allow "ER-Telecom to Holding" to become the leader in the market of cable TV in St. Petersburg and to strengthen the position in the ShPD market. The market share of ER-Telecom in the market of paid TV will grow more than by 30%.

FAS approved the petition of ER-Telecom on purchase of 100% of UK "Khabarovsk House Networks"

On July 31, 2017 it became known that the Federal Antimonopoly Service (FAS) satisfied the petition of ER-Telecom Holding (ER-Telecom) for acquisition of 100% of UK "Khabarovsk House Networks". The cost of the transaction does not reveal.[4]

As noted, in July ER-Telecom submitted petitions for acquisition of seven companies entering into the Strela Telecom group as which final owner of assets the Cyprian Elbrus Capital Investments Ltd acts. In addition to "The Khabarovsk house networks", this number also includes other six companies, working in the Irkutsk and Tomsk regions.

Elbrus Capital Investments Ltd., through Elbrus Capital Fund I belonging for 100% registered on the Cayman Islands owns 100% of Cyprus companies of Onema Investments Ltd., Rozens Trading Ltd. and also STRL Telecom Holdings Ltd. In turn, Rozens Trading Ltd., according to data of the Unified State Register of Legal Entities (USRLE), is the owner of 100% of Khabarovsk House Networks LLC.

According to the financial analyst of Finam group Leonid Delitsyn, the company with similar turnover could be estimated at 85 million rubles, however in this case the question is complicated by a financial status of the company. "Most likely, the asset is interesting not in itself, and in a packet with other companies" — the analyst believes. By Delitsyn's estimates, all seven companies in which acquisition ER-Telecom is interested in total generate more than 700 million rubles revenue.

Earlier in July FAS tayezh approved the petition of ER-Telecom on purchase of 100% of the Volgograd telecom operator of Kolambiya Telecom.

Besides, in March, 2017 ER-Telecom announced transaction on acquisition of 100% of Novotelekom LLC, provider of Novosibirsk. According to representatives of ER-Telecom, as a result of this transaction the share of the united company in a segment of B2C will make more than 40% in the ShPD market and paid TV. The share in the ShPD market in a segment of B2B will increase to 19%. In general the scale of business of ER-Telecom in Novosibirsk will grow almost four times.

Partnership "Дом.ru Business" and Taxcom

In June, 2017 federal telecom operator "Business" and the fiscal data operator of Taxcom signed with Дом.ru the partnership agreement. Thanks to the agreement, corporate clients "Дом.ru Business" will be able to sign the agreement with OFD and to connect the cash equipment to the Internet at specialists "Дом.ru Business". Read more here.

ER-Telecom can spend up to 8 billion rubles on M&A in 2017

ER-Telecom will increase investments to 15 billion rubles in 2017 – it is one quarter more, than the previous year. From them up to 8 billion the holding is ready to direct to transactions M&A (merges and absorption), Vedomosti with reference to the president of the company Andrey Kuzyaev writes.

According to him, in general operators in the cities where there is ER-Telecom and where these operators use technological solutions, similar to it, are interesting to holding. At the same time the purpose is not increase in a share in the market, and increase in business performance.

VTB will increase a credit limit for ER-Telecom

ER-Telecom and VTB signed precedent conditions of a credit line which provide increase in a credit limit up to 45 billion rubles, and availability term – up to seven years, AKTR reports.

The agreement will allow the operator to refinance a current debt, to invest in strategic development, to maintain liquidity. According to plans of ER-Telecom, within five years scales of business of the company will grow twice thanks to organic growth and M&A-активности.

75% of ER-Telecom are in pledge at VTB bank

75% of authorized capital of ER-Telecom plus 1 action are in pledge at VTB bank. Besides, the bank keeps 55% of authorized capital of the only shareholder of operator – the Cyprian ER-Telecom Holding Ltd, Vedomosti writes [5].

Pledge is a condition of the credit agreement of ER-Telecom with VTB, limiting growth of a debt – the limit of debt makes 27 billion rubles. Among terms of agreement – also observance by structures of operator of a certain financial performance. According to the edition, in 2015-2016 these indicators were observed.

2016

Among special events in 2016 – joint start with MegaFon of the project in 30 cities. The companies integrated the services – the Internet, digital TV, mobile communication – within the convergent offer and provided a discount for a subscription fee at the rate to 20%.

In 2016 federal and regional telecom operators, including B2B-operator "Enforta", "Vest of Call SPB" with assets in St. Petersburg, the Leningrad Region and Ryazan, "Business Network – Irkutsk" and "The Siberian telephone company", the rendering communication services in Irkutsk were a part of the company. In March, 2017 ER-Telecom Holding also purchased 100% of Novotelekom. The united company takes the leading position in the Novosibirsk ShPD market and a pay TV.

Growth of revenue by 27%

In 2016 the consolidated revenue grew by 27% to 28.2 billion rubles, an indicator of EBITDA – for 9% to 8.2 billion rubles. Profitability of EBITDA made 29%. Net profit is estimated at 249 million rubles, a net debt – in 24.9 billion.

In a B2B-segment revenue grew by 2.3 times to 8.8 billion rubles, in B2C growth was 6% to 19.4 billion rubles. The number of active subscribers in this segment increased by 8%. The subscriber base makes 5.7 million users.

"At the end of 2016 ER-Telecom became the most fast-growing telecom operator in Russia. Revenue of holding grew by 27% in comparison with 2015 that corresponds to planned targets of the company, - the president of holding Andrey Kuzyaev noted. – The B2B-direction became a main growth driver of revenue. Due to organic growth, expansion of a product line and also acquisition of Prestizh-Internet LLC revenue of B2B increased by 2.3 times in comparison with a previous period. In a B2C-segment, despite the highly competitive environment, we increased revenue by 6%. We reached growth including due to start of unique solutions for the Russian telecom industry, for example, of the personified Designer rate.

"Дом.ru Business" moves ahead in HoReCa sector

On August 24, 2016 the ER-Telecom company announced growth of the customer base of HoReCa in July, 2016.

The most demanded service at representatives of hotel and restaurant business - broadband access in the Internet - 51% of the attracted clients. The operator provides broadband access on the basis of own operator network with the level of fault tolerance of 99.98% and 24/7 monitoring. For connection the FTTB technology - "optics to the building" is used.

ER-Telecom is distribution of shares of services in the sector of HoReCa, (2016)

The service of Wi-fi Hot Spot within July, 2016 was connected by 19 cafes and hotels. Wi-Fi Hot Spot as the company - one of the most popular services at "Дом.ru stated Business" for a HoReCa segment. Access points of operator level provide Internet connection for 100-150 devices at the same time without loss of quality. At the same time the area of a covering of a point of Wi-fi can be from 100 to 500 square meters.

According to the conclusion of the company, the third place among the most popular telecom services in a HoReCa segment, according to the results of July, is occupied by telephony: it was connected by 25% of the attracted clients "Дом.ru Business". According to the operator, this trend confirms the growing popularity of the cloud services relevant for the companies with a large number of incoming calls and geographically distributed branches.

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HoReCa segment – one of the most quickly developing in our country. And for it, as for any another, the happy client is important. For this reason hotels, cafe and restaurants aim to connect the packet of telecom services allowing to make stay of guests the most comfortable – as a rule, it is Wi-Fi, license digital television, the IP telephony

Elena Ventslavovich, the deputy CEO - the director of b2b of ER-Telecom Holding
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Negotiations with MegaFon on purchase of ER-Telecom

PJSC MegaFon discusses with owners "ER-Telecom of Holding" purchase of provider, the Vedomosti newspaper with reference to the sources close to management[6] reported [7].

Discussion of the possible transaction is at an early stage, the interlocutor of the newspaper close to co-owners of ER-Telecom noted. The company looks for financing sources, including because many transactions in regions were not repaid, approves other source.

MegaFon attentively studies all offers which arrive according to transactions М&A. Before making decision on purchase we carry out the detailed analysis of a subject of the transaction and if the asset is of interest to MegaFon, then the positive decision is made", - the representative of the company Yulia Dorokhina told Interfax, without having commented on information on purchase of ER-Telecom.

"Дом.ru" started the portal of purchases

The Дом.ru telecom operator announced in the summer of 2016 start of the portal where in an electronic format it will be possible to make purchases of goods, works and services for own needs. Registration on the website and participation in procurement procedures are free for all participants. The first biddings on the new platform will take place at the end of June.

Start of it the project will give to the company the chance to refuse services of operators on which platforms "Дом.ru" also held the auction. In addition, the telecom operator will independently control all information obtained during the procurement procedures through the data processing centers. And the electronic format of biddings will provide transparency of transactions and optimizes terms and purchasing amounts, costs for them that will help "Дом.ru" of a message the activity more effectively.

As stated in the message of the operator, potential suppliers need to be registered on the portal and to undergo the procedure of verification of documents. After that they will receive notifications on the purchases interesting them.

Police officers carry out an inspection in connection with sale of shares of Yaroslavlteleseti

The deputy of the Yaroslavl region duma Sergey Balabayev reported[8] in March, 2016 that the Regional Office of the Ministry of Internal Affairs of Russia across Yaroslavl is carried out an inspection about criminal prosecution of officials of the local government authorities of Yaroslavl which performed sale of shares of JSC Yaroslavlteleset at the underestimated cost [9].

In response to the deputy inquiry of Balabayev, the regional prosecutor's office announced that are instructed the chief of body of inquiry "about familiarizing with materials of check of results additional a research of documents, the reduction in cost of stocks of JSC Yaroslavlteleset appointed for the purpose of establishment of the reasons. Also the public prosecutor's letter to the deputy contains information that on the facts of violations by the allowed staff of Department of economic safety from the city prosecutor requirements about elimination of violations of the criminal procedure legislation were entered. Based on consideration of the requirement one official was brought to disciplinary responsibility.

In the fall of 2015 the Arbitration court of the Yaroslavl region refused[10] to satisfy the claim of ER-Telecom Holding Limited operator against the regional government of Federal Antimonopoly Service (GFAS) which earlier recognized illegal the transaction on sale to Yaroslavlteleset company. In the spring of 2015 ER-Telecom purchased[11] of JSC Yaroslavlteleset (YaTS) which purchased from an auction from the authorities of Yaroslavl for 305.5 million rubles. FAS approved the transaction. However the regional deputy Sergey Balabayev directed applications to prosecutor's office and Regional Office of the Ministry of Internal Affairs concerning sale of YaTS as he considered asset cost underestimated. As a result, the Yaroslavl OFAS recognized that at sale of shares the mayor's office broke the law on protection of the competition, having illegally allowed to participation in tender of Online Byuro LLC. ER-Telecom disputed the decision of OFAS in court, however the court refused to join in.

2015

Stagnation of revenue - 22.2 billion at the end of year

Revenue of ER-Telecom at the end of 2015 made 22.2 billion rubles, practically without having changed in a year (22.1 billion rubles in 2014). The indicator of EBITDA decreased by 15.7%, to 7.5 billion rubles. The net debt made 14.4 billion rubles, a ratio a net debt / EBITDA - 1.9, data of the company demonstrate. Last year the holding invested 4.1 billion rubles, is 20.6% more, than in 2014.

Indicators of network activity

On March 6, 2015 the Дом.ru company published data on the total volume of Internet traffic of users in the network for 2014 - it grew by 30%. By the end of 2014 Internet users in 56 cities of presence of the company consumed 820 Gbit of traffic per second.

Are most popular with clients:

  • websites of a video hosting and online movie theaters (20% of the total amount of traffic),
  • social networks (16%),
  • search systems (1.3%).

Growth of traffic was provided with several factors:

  • growth of number of users,
  • increase in speed on rates,
  • promoting of online resources (video, games, music, etc.),
  • increase in number of devices with Internet access (tablets, smartphones, TVs of Smart TV).

During 2014 "Дом.ru" step by step increased access rates in the Internet in all cities, at the same time without having changed the amount of a subscription fee.

More than 70% of users of telecom operator are connected to rates from speed of 50 Mbit/c above, a half of them uses the most high-speed rate (up to 100 Mbit / c).

2014: Growth of revenue by 15% to 21.3 billion rub

Revenue of the ER-Telecom holding which is based in Perm in 2014 made 21.3 billion rubles, 15% of this revenue were brought by corporate clients (b2b segment).

ER-Telecom works under the Дом.ру brand. In 2013 the b2b-direction of holding was selected in a separate brand — "Дом.ру business" — and brought 12% of the amount of total sales of structure at the end of year. According to the forecast, in 2017 the share of b2b will grow to 20% of income, and in 2024 when revenue of holding should reach 40 billion rubles — to 25%.

In 2014 revenue "Дом.ru Business" grew by 30% in comparison with last year and made 3.2 billion rubles. B2B segment share in total sales of JSC ER-Telecom Holding for 2014 increased to 15%. The total quantity of the connected access points in the Internet and corporate telephony in comparison with 2013 increased by 28% and exceeded 87 thousand.

Services in providing Internet access and telephony products remain a key source of income. The share of these services in structure of corporate revenue makes 76% and 22% respectively. Another 2% are the share of additional services. At the same time growth products drivers specialists "Business" call Дом.ru cloud automatic telephone exchange and other cloud services (SaaS, IaaS), SIP telephony and integration solutions.

In comparison with 2013 growth of a share of B2B in structure of revenue of the company was 3% thanks to increase in portfolio of corporate clients. The segment of small and medium business remains a main growth driver of income. Its share in the total corporate portfolio in 2014 exceeded 80%. The share of the state customers in structure of B2B of revenue made 5% that is connected with entry of the operator into the market of B2G. The share of federal clients grew to 9%.

Revenue of the operator from services for B2B-clients doubled in three years, having exceeded 3 billion rubles. The subscriber base grew more, than by 63%, the total number of the connected access points in the Internet and telephony reached 87 thousand.

For three years the company "Дом.ru Business" doubled revenue from corporate services: from 1.5 billion in 2012 to 3.1 billion rubles in 2014. A main growth driver of income - services in the organization of Internet access and telephony, including cloud automatic telephone exchange which share in structure of revenue of B2B makes 76% and 22% respectively. Another 2% are the share of additional services.

Total investment volume into construction and upgrade of operator network in the cities of presence was about 7 billion rubles that allowed to build powerful network of city and trunk fiber optic communication lines with a total length more than 37 thousand km. By means of a ring topology and unique technology CUTN (city universal telecommunication network) used at construction of infrastructure "Business" provides to Дом.ru communication services for corporate clients in 56 cities of Russia in 6 federal districts.

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Dynamics of a subscriber base and revenue, 2015

"Annual average growth rates of revenue which Business showed "Дом.ru" show that at effective strategy it is possible to develop successfully business even in such complex and highly competitive market as the Russian market of corporate telecommunications, – Elena Ventslavovich, the development director "noted Дом.ru Business". – We are focused on customer needs and service quality and we offer the companies the tools and technologies opening new opportunities for business growth".

In 2014 the subscriber base "Дом.ru Business" on service of providing corporate broadband access increased by 20% in comparison with 2013, having made 65500 clients. Broadband access remain the main driver of connections among all services "Дом.ru Business". First of all, growth is provided by new connections in a segment of small and medium business. At the same time the strategy of the company is directed to the advancing growth of a share of federal clients and state customers in structure of revenue of B2B.

According to the updated strategy "Дом.ru Business", in the provided spring of 2015, the share of large federal customers in total sales of B2B by 2017 should increase to 18%, and a share of the state customers – to 12%. By 2024 "Дом.ru Business" is going to increase a share of income from B2B-services to 25% in total sales of JSC ER-Telecom Holding.

The methodology of rating is based on business key performance indicators: dynamics of a subscriber base of B2B, revenue from services to corporate clients and ARPU in annual terms. The rating included both the federal, and local operators and broadcasters working at the Russian market.

2013

Growth of revenue by 37% to 19 billion rub

Revenue of the company increased by 37% and made 19,021 million rubles excluding VAT. Revenue from service of broadband access in the Internet made 11,575 million rubles, from provision of services of cable television – 5,539 million rubles, from telephony services – 1,370 million rubles.

B2B segment share in total sales increased to 12%, revenue of B2B exceeded 2.5 billion rubles. Revenue gain on this segment in a year made 56%.

Average monthly income on the subscriber (ARPU) on all segments in 2013 was 323 rub, including the VAT of 18%. The gain made 11% in relation to the same period of last year.

The indicator of EBITDA in 2013 increased almost by 6 times in comparison with 2012, having made 5,710 million rubles. The margin of EBITDA in 2013 made 30%, in 2012 this indicator was at the level of 6%. "Дом.ru" passed into a phase of a positive indicator on net profit whose value reached 537 million rubles.

For 2013 the mounted capacity of network increased by 3% and was 8,704 thousand households. For December 31, 2013 the general subscriber base of the company made 3,000 thousand apartments, the total quantity of active agreements in these apartments on all types of service (RGU) made 5,742 thousand. The gain of a subscriber base in comparison with last year made 198 thousand quarter (7%) or 535 thousand services (10%).

In a year the share of the subscribers consuming more than one service of the operator increased from 65% in 2012 to 68% in 2013. The share of subscribers of triple-play - the subscribers using at once all three services of "Дом.ru" - reached 14%, having increased by 1 items. More than a half of subscribers of the company – 55%, are consumers of the package offer consisting of two services – double-play.

The number of active agreements of cable television at the end of 2013 reached 2,566 thousand. The gain in a year made 218 thousand subscribers or 9% in comparison with 2012. The number of active agreements broadband access in the Internet in 12 months 2013 increased to 2,732 thousand. The gain in a year made 281 thousand subscribers or 11%. The number of active agreements of fixed telephone communication was about 445 thousand clients that on 36 thousand subscribers it is more, than in 2012, a gain in a year - 3%.

At the end of 2013 "Дом.ru" increased a share in the Russian market of telecommunications. By own estimates, the share of the company in the market of broadband access (broadband access) in the Internet grew from 10% to 12%, in a segment of paid TV - from 10 to 13%. The average share of the market in 56 cities of presence made 28% in the ShPD market and 38% in the market of paid TV.

The Дом.ru telecom operator increased a share in the Russian market of telecommunications at the end of 2013. By own estimates, the share of the Company grew from 10% to 12% in the market of broadband access (broadband access) in the Internet and from 10 to 13% - in a segment of paid TV. At the same time the average share of the market in 56 cities of presence made 28% in the ShPD market and 38% in the market of paid TV.

Subscribers of telephone communication of one of the largest telecom operators of Russia of "Дом.ru" told 3.8 billion minutes at the end of 2013. The volume of telephone traffic in a year increased twice and exceeded 300 million minutes a month. Users talked on 10 million minutes a day. The general number capacity of a telephone network of "Дом.ru" in the cities of presence exceeds 900 thousand numbers. In 2011 and 2012 the number of users of telephony annually doubled and now is about 450 thousand people.

For 2012-2013 the number of the corporate clients using services "Дом.ru Business" exceeded 70 thousand. Growth of revenue for this period was 56%, having increased from 1,619 million to 2520 million rubles in 2013. B2B segment share in total sales for 2013 grew to 12% and made 2.5 billion rubles. It is remarkable that this indicator exceeded planned targets for 110%.

Average monthly income on corporate client (ARPU) last year reached 3,515 rubles. In comparison with the same period of 2012 growth was 55%. "Growth which showed "Дом.ru Business", considerably advances growth rates of the market. It is very positive trend, considering that rates of development of the telecommunication market slow down every year", - Mikhail Vorobyov emphasized.

"Дом.ru Business" clients in 56 cities of Russia use services. The number of points the Internet of telephony of corporate clients exceeded 70 thousand. 60% of a subscriber base make the enterprises of small and medium business. 30% of subscribers are the share of a segment of SOHO though revenue grows more slowly than the others here. Enterprise a segment makes 10% of a subscriber base. In structure of revenue of B2B the share of SMB reaches 65%.

FAS approved purchase of Akado company by ER-Telecom

On July 23, 2013 it became known that the Federal Antimonopoly Service approved the petition of ER-Telecom provider on purchase of Akado. The petition on purchase 100 percent of shares is approved without additional instructions.

Purchase of Akado will allow to occupy 20 percent of the market of broadband access in the Internet in Moscow. MTS and Beeline control 28 and 23 percent respectively.

In June it became known that MTS applies for Akado. Also among buyers holdings "Svyazinvest", "CenterTelecom" (now is in structure state "Rostelecom"), "MegaFon" and "Transtelecom" were called state.

67% of the stocks "Akado" to the transaction belonged to the Renova group of Victor Vekselberg. Other 33 percent of securities are controlled by the entrepreneur Yury Pripachkin. The company renders services of telephony and Internet access in Moscow, St. Petersburg and Yekaterinburg. Besides, she owns the capital operator of fiber-optical network "Comcor" and a half of Belarusian Kosmos TV.

The company strengthened in 2013 positions at the expense of HD television of "Дом.ru TV" - the innovation service step by step started in the 2nd half-year 2012 and the 1st half-year 2013. The service united television (159 digital channels, 50 of which - in a HD format), popular Internet-applications (social networks, a 60-thousand videoshop, Sportbox.ru services, 2 GIS, Karaoke) and wide feature set of management of air. At the end of 2013 the total quantity of users cable and HD television exceeded 2.5 million people – by the size of a subscriber base "Дом.ru" takes the 4th place among the Russian operators of paid TV.

2012

Growth of revenue by 43% to 13.8 billion rub

  • Revenue for 2012 increased by 43% and made 13,896 million rubles excluding VAT.

  • In 12 months 2012 revenue from service of broadband Internet access made 8,759 million rubles excluding VAT (63% in the general structure of revenue), from provision of services of cable television – 4,076 million rubles excluding VAT (29% in structure of total sales), from providing service of telephony – 1,054 million rubles excluding VAT (8% in structure of total sales).

  • B2B segment share in total sales continues to grow, in 2012 revenue of B2B exceeded 1.6 billion rubles. Revenue gain on this segment in a year made 64%. Parallel development of segments of B2C and B2B does a product portfolio of "Дом.ru" more balanced and steady against changes in the industry.

  • Average monthly income on the subscriber (ARPU) in 2012 was 297 rub, including the VAT of 18%. The gain made 3% in relation to the same period of last year.

  • Despite high rates of set of a subscriber base and rather recent start of start-up in the new cities of the project, the indicator of EBITDA in 2012 accepted positive value and increased by 1,468 billion rubles in comparison with 2011, having made 956 million rubles.

  • The margin of EBITDA in 2012 made 7%, in 2011 this indicator was at the level of-5%.

  • For 2012 the mounted capacity of network increased by 25% and was 8.4 million households.

  • For December 31, 2012 the general subscriber base of the company made 3,009 thousand apartments. The gain of a subscriber base in comparison with last year made 644 thousand quarter or 27%.

  • In a year the share of the subscribers consuming more than one service of the operator increased from 56% in 2011 to 64% in 2012. The share of subscribers of triple-play - the subscribers using at once all three services of "Дом.ru" - reached 12%, having increased by 3 items. More than a half of subscribers of the Company – 52%, are consumers of the package offer consisting of two services – double-play.

  • For December 31, 2012 the total quantity of active agreements on all types of service (RGU) made 5,290 thousand. The gain in comparison with last year made 1,379 thousand or 35%.

  • The number of active agreements of Cable Television at the end of 2012 reached 2,348 thousand. The gain in a year made 601 thousand subscribers or 34% in comparison with 2011. The company takes the 4th place in Russia in the market of services of a pay TV.

  • The number of active agreements broadband access in the Internet in 12 months 2012 increased to 2,487 thousand. The gain in a year made 587 thousand subscribers or 31%. Based on 2012 "Дом.ru" rose by the number of subscribers to the 2nd place in Russia in the ShPD market in the Internet, having overtaken two strong federal competitors.

  • Based on 2012 the number of active agreements of fixed telephone communication was about 456 thousand clients that on 191 thousand subscribers it is more, than in 2011. A gain of number of subscribers in a year - 72%.

  • The indicator of RGU on the subscriber – the average number of active agreements counting on one subscriber (one apartment) - based on 2012 made 1.76. In 2011 this indicator was up to standard 1.65. Growth of number of the services consumed by one subscriber demonstrates success of the policy of package sales performed by "Дом.ru".

The credit in Sberbank for 6.5 billion rubles

"Дом.ru" signed with the West Ural bank JSC Sberbank of Russia the agreement on opening of a credit line in the amount of 6.5 billion rubles for a period of 6 years that was the second stage of attraction of debt financing in a total amount of 12.5 billion rubles for implementation of the Leader strategy announced at the beginning of 2010. Thanks to the loan granted by Sberbank, "Дом.ru" implements Leader strategy in full, having completed the formation as largest independent operator in Russia.

  • "Дом.ru" completed the first stage of construction of own backbone network. The network with a total length of 4870 km integrated 10 cities of presence of the company – Barnaul, Yekaterinburg, Krasnoyarsk, Kurgan, Magnitogorsk, Novosibirsk, Omsk, Tomsk, Tyumen and Chelyabinsk. Own backbone network will allow "Дом.ru" to provide completely growing needs of subscribers for heavy content (video, music, online games) and increase in an exchange rate traffic between the cities and also to quickly implement modern services and services.

  • "Дом.ru" starts new service "Дом.ru TV. Center of house entertainments". In many respects anticipating development of the industry, the company offers subscribers essentially new format of TV viewing - "Дом.ru TV" combines TV channels and popular Internet services on one screen. In 2012 the service became available to residents of 19 cities. In 2013 the company will start HD television in all other cities of presence.

  • "Дом.ru" according to data of Net Index service is recognized by the most high-speed federal Internet service provider of Russia. Average speed of Internet access which is provided by the Company to the subscribers in 56 cities of presence is about 35 Mbit / c that is twice more than access rate in the Internet on average in Russia (about 16 Mbit / c).

  • "Дом.ru" was included into the top ten of the rating of the best Russian innovative companies prepared by JSC RVC together with Association of the innovation regions of Russia.

2011: Construction of City Universal Telecommunication Networks

Revenue in 2011 made 9,688 million rubles excluding VAT. A gain in comparison with 2010 - 43%. The previous year the growth rate of revenue was 45%. Average growth rate of revenue for the last 5 years – 117%.

Decrease in indicators of profitability of the project is caused by the introduction ER-Telecom in a new active investment phase – construction of City Universal Telecommunication Networks from scratch. In 2011 construction of networks and provision of services in 15 new cities, in 2010 – in 10 cities, including St. Petersburg and Yekaterinburg, Ufa and Rostov-on-Don is begun.

In 2011 the company implemented 15 start up-проектов, having expanded with that activity geography to 42 Russian cities from 27 in 2010.

To service of broadband access in the Internet more than 1.5 million people, are connected to a pay TV – 1.34 million, to a telephone service - more than 160 thousand. 680 thousand subscribers use service packages today that makes 23% of all subscriber base.

Less than in 4 months 2011 the subscriber base of ER-Telecom grew for 11%. In 2010 number of users of cable television, broadband access in the Internet and telephony increased by 705 thousand - the gain made 35% in relation to previous year.

As note in the company, the growth of number of users has organic character and happens due to increase in penetration of services on own networks in the existing cities of the project. The contribution of geographical expansion to increase in number of subscribers in 2010 did not exceed 20%. The package offers which provided more than 80% in the general gain of number of users became the driver of growth.

For 2011 the mounted capacity of network increased by 55% in comparison with 2010 and was 6.7 million households instead of 4.3 million in previous year.

For January 1, 2012 the total quantity of subscribers of the company contained 3,912 thousand. The gain of a subscriber base in comparison with 2010 made 1,195 thousand or 44%. The number of users of cable television at the end of 2011 reached 1,747 thousand. A gain – 529 thousand or 43% in relation to 2010. The number of Internet users increased to 1,899 thousand. A gain to previous year – 535 thousand or 39%. About 265 thousand clients use services of fixed telephone communication. A gain in relation to previous year 98%.

In 2011 revenue from service of broadband Internet access made 6,166 million rubles excluding VAT (64% in the general structure of revenue), from provision of services of cable television – 2,868 million rubles excluding VAT (29% in structure of total sales), from providing service of telephony – 650 million rubles excluding VAT (about 7% in structure of total sales).

Average monthly income on the subscriber (ARPU) in 2011 was 285 rub, including the VAT of 18%. A gain of 2% in relation to 2010. Growth of APRU is caused by planned increase in a subscription fee for cable television and telephony according to all-market trends and also introduction of new tariff plans on Internet services with the improved consumer qualities.

By the end of 2011 the regional operator "ER-Telecom" was going to connect 1.7 million subscribers of cable TV (CATV) and more than 250 thousand users of telephony. For the beginning of October the operator already serviced 1.5 million subscribers of a CATV and 200 thousand - telephony.

ER-Telecom provides access to a CATV (under a brand of Divan-TV) since 2003. The service is available in 42 cities of presence of the company. In Perm, Samara and Tyumen since February of this year the operator provides also access to the digital cable TV under a brand of Divan-TV Plus including a packet of HD channels. The company promises that by the end of 2011 - to the beginning of 2012 the service of HDTV will appear in all cities of its presence.

The company provided a considerable gain of subscribers of telephony at the expense of an opportunity to connect service in the economic price as a part of the package offer (together with the high-speed Internet and cable TV) and also due to organic growth: in 2011 telephony is started in 11 cities.

ER-Telecom started service of telephony in 2006 in Perm that allowed the company to create a complete packet of Triple Play – simultaneous providing three key communication services (the Internet, cable TV, telephone communication). Now the service is available to residents of 27 cities of Russia, in 2012 its start in 12 cities is planned.

The volume of telephone traffic of "Дом.ru" monthly increases by 5% and in December, 2011 exceeded 70 million minutes. 90% of traffic are the share of city communication, 10% - of a domestic long distance and international telecommunication.

2010: Negotiations with Baring Vostok Capital Partners

In February, 2010 the company announced new strategy to which accomplishment it is necessary to attract till 2014 about $500 million from third-party investors to whom the company is ready to sell to 25% of the increased authorized capital. Means are necessary to the company that by 2014 to occupy a share in 20% on revenue in the Russian markets broadband access and cable TV. According to the CEO of ER-Telecom Andrey Semerikov, it is going to attract the capital in several stages using private placement or the IPO.

According to the results of the II quarter 2010 ER-Telecom had 1.1 million subscribers of broadband access and 0.97 million subscribers of cable TV.

In July, 2010 to increase attractiveness of business for third-party investors, shareholders approved reorganization of ER-Telecom — were attached to the company its 14 regional "subsidiaries".

On September 2, 2010 it became known that the Baring Vostok Capital Partners management company conducts negotiations on purchase of shares of ER-Telecom company for the Baring Vostok Private Equity Fund IV fund, the manager of one of investment companies reported Vedomosti. Knows about it also the source close to ER-Telecom. The size of the sold packet — about 10%, is an additional issue, the manager of the partner company of ER-Telecom notes. According to him, due diligence comes to the end, and the transaction can be signed in the next weeks. The representative of Baring reported only that information will be in this respect available not earlier than in a month. The representative of ER-Telecom refused comments.

At the end of 2010 revenue made 6,792 million rubles.

2009: Revenue of $156 million

The consolidated financial performance (the management reporting, 2009):

  • Revenue – $156.05 million,
  • EBITDA – $45.96 million,
  • Profit – $11.32 million.

2008: Transfer of subsidiary companies in uniform holding

The million subscriber is connected. Restructuring of holding as a result of which all subsidiary companies passed the property of ER-Telecom Holding Ltd into 100% is complete.

At the end of 2008 39% of the market of a pay TV and 32% of the market of broadband Internet access are the share of a share of the companies of holding in the cities in which the company works. At the end of 2008 revenue of the operator made 2.9 billion rubles. The gain in relation to 2007 made more than 130%.

2007: Work in 17 cities of Russia

The project began to be implemented in 17 cities of the Russian Federation with management company in Perm. ER-Telecom Holding Ltd is included in the register of 100 best customer-oriented companies.

2006: PFPG buys 51.6% in ER-Telecom

In the project ER-Telecom is attracted the strategic partner  — the Perm financial and industrial group (the largest investment holding of the Western Urals). At the beginning of 2006 PFPG consolidated 51.6 % in ER-Telecom Ltd. The decision on creation of ER-Telecom Holding Ltd for implementation of the expanded strategy of development for the project in 15 cities of the Russian Federation was in parallel made.

2005: Expansion to Samara, Volgograd, Volzhsky

Beginning of replication of the project, geographical expansion to the cities: Samara, Volgograd, Volzhsky.

2004: Successful start of network

Operation of GUTS, beginning of operating activities. At the end of year, in view of successful project implementation in Perm, it is accepted decisions on a possibility of expansion of the project.

2003: Construction of an optical network in Perm

The period of formation of the City Universal Telecommunication Network (CUTN) in Perm. Fiber optic network on "optics to the house" technology. The general capacity of network was 200000 apartments

2001: Education ER-Telecom

ER-Telecom Ltd is formed Perm by the telephone operator of Elsvyaz Ltd (year of establishment 1992) and Reyd-Internet Ltd Internet service provider (year of establishment 1997).

Notes