Financial indicators of Rostelecom

Main article about the company: Rostelecom

2023

Rostelecom increased revenue by 13%. The directions of data centers, clouds and information security have grown the most

Rostelecom at the end of February reported on financial results for 2023. Revenue grew by 13% year-on-year, to 707.8 billion rubles, and net profit - by 20%, to 42.3 billion rubles.

OIBDA increased by 13%, to 283.2 billion rubles, OIBDA margin was 40.0% against 40.1% in 2022. Capital investments increased by 26% to 147.2 billion rubles. They accounted for 20.8% of revenue.

Net debt, including lease obligations (JSC), increased by 12% since the beginning of the year and amounted to 563.3 billion rubles, or 2.0 indicators "Net debt, including JSC/OIBDA."

The main contribution to revenue growth in 2023 was provided by mobile business, the digital data center cluster and cloud services, as well as the promotion of complex digital products in the B2B/G segment, Rostelecom explains. Since 2019, the share of digital products in revenue has doubled and reached 22% in 2023, becoming the second most important revenue item after mobile communications.

The direction of data centers and cloud services, in particular, grew by 44% in 2023, becoming the fastest growing. Cybersecurity business increased by 38%. In these segments, companies such as DataLine and Solar operate in the Rostelecom circuit.

Key Financial Results of 2023

The growth of turnover in 2023 was due to the influence of the following factors:

• 28% growth in revenues from digital services associated with the development of platform solutions for the provision of social services, the promotion of cloud solutions, Digital Region projects and cybersecurity solutions;
• 13% growth in mobile business revenues associated with the growth of mobile Internet consumption services, the active penetration of package offers and the transition to new customizable tariff plans;
• 9% increase in revenue from wholesale services mainly due to indexation of tariffs and conclusion of contracts with large customers;
• 5% revenue growth in the broadband Internet services segment due to the increase in the number of customers connected via optical access networks and the growth of ARPU;
• 9% growth in revenue from video services, mainly due to the active development and expansion of Wink's client base, which combines the capabilities of IPTV and online cinema.

Revenue Structure by Service Type and Management Segment

The number of Internet subscribers connected through fiber-optic access networks in the household segment in the fourth quarter of 2023 reached 11.0 million, an increase of 7% compared to the same period last year. In the segment of legal entities, the same indicator in the IV quarter of 2023 increased by 7% and amounted to 0.7 million.

The total number of fixed telephony subscribers decreased in the fourth quarter of 2023 to 10.2 million - by 10% compared to the same period in 2022. More and more subscribers, mainly in the household sector, over time abandon traditional copper technologies for voice communication in the context of the active development of technologies and products of voice communication via the Internet, the growth of their availability and convenience for the mass user, noted in Rostelecom.

At the same time, the number of active users of mobile Internet in the fourth quarter increased by 6% compared to the same period in 2022, and the growth of Internet traffic in mobile networks amounted to 16%. The decrease in content consumption due to the departure of foreign content suppliers from Russia, including Meta (the organization is recognized as extremist in the Russian Federation), was fully compensated by the redistribution of demand for domestic resources, according to Rostelecom. Against the background of the recovery in traffic growth, the company continues to manage consumption to ensure stable network operation in the new economic conditions.

"Rostelecom" has coped with the main tasks of the current strategy and is entering the next strategic cycle as a stronger player. This year we plan to present to the market new strategic priorities of the company until 2030, where we will outline our ambitions for investing in business growth, creating and disclosing value for our shareholders. Together with the strategy, we also plan to update the dividend policy, which will be associated with the implementation of strategic goals, while maintaining the established practice of an attractive level of payments to our investors, says Mikhail Oseevsky, President of Rostelecom.

For 2024, Rostelecom predicts OIBTDA above 300 billion rubles, since activities are still very marginal, Mikhail Oseevsky said during an online conference for investors and analysts on February 27. And the next target for revenue is 1 trillion rubles. According to Mikhail Oseevsky, the company is now discussing in what year it will reach this indicator.

At the same time, Rostelecom still adheres to the policy of an annual increase in dividend payments. But it is too early to talk about specific figures. In the spring, the company will consult with its shareholders on this matter and will come out with numbers for the annual meeting.

Oseevsky also said that Rostelecom plans to IPO one of its subsidiaries in the 2nd half of 2024 and continue this experience in the future.

Preliminary result: revenue - 700 billion rubles

Rostelecom's revenue in 2023 exceeded 700 billion rubles. The president of the company, Mikhail Oseevsky, announced this on January 17, 2024. The telecom operator's revenue doubled in six years, he said.

Interfax recalls that in 2022 Rostelecom's revenue reached 627.1 billion rubles, which is 8.1% more than a year earlier. Taking into account the indicator named by Oseevsky, it turns out that in 2023 the company's sales increased by about 12%.

By January 17, 2024, the telecom operator has not yet published its financial statements for the previous year. Earlier, the company reported a 58 percent increase in net profit in July-September 2023 compared to a year ago - up to 13.6 billion rubles. From January to September 2023, the company's net profit increased by 29%, to 40.5 billion rubles.

In January-September 2023, revenue in annual terms increased by 14%, to 498.5 billion rubles, OIBDA - by 13%, to 209.3 billion rubles. OIBDA margin increased by 42.0% compared to 42.5% in the same period in 2022. Free cash flow increased by 77%, to 84.2 billion rubles. Net debt, including lease liabilities, decreased by 1% to 497.8 billion rubles.

According to Sergey Anokhin, First Vice President, Financial Director of Rostelecom, the company was able to significantly reduce its debt burden and generally demonstrates high stability amid turbulence. According to Anokhin, this was facilitated by factors such as broad business diversification with an emphasis on growing demand areas, the successful completion of organizational reform with the transition to a two-level management model, as well as anti-crisis actions.^[1]

Digital services became the second most revenue direction of Rostelecom services

On August 3, 2023, Rostelecom announced the results of operations for the II quarter and 6 months of 2023 according to the consolidated statements under IFRS. The total revenue of Rostelecom compared to 6 months of 2022 increased by 15%, to 324.5 billion rubles, net profit - by 18% to 26.9 billion rubles.

The main contribution to revenue growth in the first half of 2023 was provided by the promotion of complex digital products in the B2B/G segment, mobile business, as well as digital clusters.

According to the results of the first half of 2023, digital services, as a direction of services, came from the third to the second place in terms of revenue from Rostelecom after mobile communications, overtaking the direction of fixed Internet services. Their share in the total revenue from Rostelecom's services for the half year grew to 18.3%. The same indicator in the first half of 2022 was 14.1%.

The direction of digital services became the fastest growing revenue for the company: in the first half of 2023, in relation to the same period in 2022, it showed an increase of 49%, to 59.5 billion rubles. These services are related to the promotion of cloud solutions, information security services, digital region projects, the development of platform solutions for the provision of social services.

The direction of information security showed an increase of 90%, to 3.94 billion rubles for the first half of 2023 in relation to the first half of 2022. The company introduced new information security solutions on the market, including its own new generation firewall for corporate networks - Solar NGFW and completed a number of major projects as part of the development of cybersecurity services.

The company considers its project to protect the SPIEF infrastructure from possible destructive impact from infected devices of contractors, participants or guests of the forum to be one of the most significant in this area. Within the framework of it, several dozen malicious activities were identified, which were blocked in a timely manner without the possibility of further development; a whole cascade of DDoS attacks on SPIEF online broadcasts with a capacity of up to 50 thousand requests per second was also reflected; the efficiency of filtering malicious traffic, according to Rostelecom, amounted to over 99.6%.

The direction of data centers and cloud services showed an increase in revenue by 42%, to almost 25.3 billion rubles. As part of the development of cloud services and data center services in the reporting period, a new Medvedkovo data center was launched in 4 machine rooms with a total capacity of 9 MW.

Taking into account the urgent tasks and challenges facing the telecommunications industry, the ICT market and various sectors of the Russian economy in terms of digitalization in general and ensuring technological sovereignty, the company is actively investing in its own and partner development of domestic software and equipment in demand both by the company itself and by other market players, - says Sergey Anokhin, First Vice President - Financial Director of Rostelecom.

2022

Cybersecurity revenue growth by 18% to 14.4 billion rubles

Rostelecom's revenue from sales of products and services in the field of information security in 2022 rose by 18% compared to 2021 and reached 14.4 billion rubles. This was announced in mid-July 2023 by the head of RTK-Solar (the indicators of this company are included in the mentioned 14.4 billion rubles), vice president of Rostelecom for information security Igor Lyapunov.

The market has a balance of supply and demand. If earlier the information security market was a demand market, that is, the customer had a budget deficit, then in the past [2022] the market experienced a supply deficit, "he said in a conversation with RIA Novosti.

According to Lyapunov, Russian manufacturers of information security solutions were unable to quickly offer the required amount of technology after the departure of foreign competitors. He called the shortage of cybersecurity specialists another problem.

{{the quote|Multiple market growth, especially if we are talking about the provision of services and services, is impossible without a certain number of necessary specialists, the number of information security professionals in the labor market is limited, - said the head of RTK-Solar. Ошибка цитирования Отсутствует закрывающий тег </ref>

2021

Revenue growth from digital services by 14.4% to 88,399 million rubles

At the end of 2021, Rostelecom's revenue amounted to 88,399 million rubles, an increase of 14.4% compared to 2020, which allowed it to take 7th place in the ranking of TAdviser100: The largest IT companies in Russia 2022. Revenue from digital services is taken into account.

Cloud business and cybersecurity have become the fastest growing business areas of Rostelecom

Rostelecom's revenue following the results of its work in 2021 increased by 6% and reached 580.1 billion rubles. rubles. Net profit during this time increased by 26%, to 31.8 billion rubles. Such data were released on March 4, 2022.

The company received the largest income from mobile services, revenue from this segment exceeded 194.3 billion rubles, which is 10% more than a year earlier. Revenue from fixed Internet access services increased by 11% and reached 99.9 billion rubles. The segment of digital services was growing more actively than others, associated with the development of platform solutions for the digital state, video surveillance services, the promotion of data center services and cloud solutions. Television services brought 39.9 billion rubles, which is 5% more than a year earlier. Income from digital services increased by 14% to 88.4 billion rubles.

	2021	2020 (revised)
Выручка	' 580 092	546 889
Операционные расходы
Заработная плата, прочие выплаты и социальные отчисления	(137 209)	(136 389)
Амортизационные отчисления и убытки от обесценения внеоборотных активов	(140 059)	(119 702)
Расходы по услугам операторов связи	(96 816)	(95 635)
Прибыль от выбытия основных средств и нематериальных активов	9 051	5 992
Убытки от обесценения финансовых активов учитываемых по амортизированной стоимости	(1 911)	(7 165)
Прочие операционные доходы	20 736	21 883
Прочие операционные расходы	(116 751)	(106 606)
Итого операционные расходы, нетто	(506 385)	(477 924)
Операционная прибыль	73 707	68 965
Доля в прибылях ассоциированных компаний и совместных предприятий	261	969
Financial revenues	2,205	2,032
Финансовые расходы	(38 923)	(36 670)
Прочие инвестиционные доходы/(расходы), нетто	3 230	(91)
(Убыток)/прибыль от курсовых разниц, нетто	336	(1 183)
Прибыль до налогообложения	40 816	34 022
Расходы по налогу на прибыль	(8 984)	(8 659)
| 31 832	25 363
Прочий совокупный доход/(убыток)
Прочий совокупный доход/(убыток), подлежащий реклассификации в состав прибыли и убытка в последующих периодах
Курсовые разницы при пересчете деятельности иностранного подразделения в валюту представления за вычетом налога на прибыль	196	181
Итого прочий совокупный доход, подлежащий реклассификации в состав прибыли и убытка в последующих периодах	196	181
Прочие совокупные доходы/(убытки), не подлежащие реклассификации в состав прибыли и убытка в последующих периодах
Переоценка пенсионных планов с установленными выплатами	75	21
Доля в прочем совокупном доходе ассоциированных компаний	57	–
Налог на прибыль с переоценки пенсионных планов с установленными выплатами	(15)	(4)
Итого прочий совокупный доход, не подлежащий реклассификации в состав прибыли и убытка в последующих периодах	117	17
Прочий совокупный доход за год за вычетом налога на прибыль	313	198
Итого совокупный доход за год	32 145	25 561
Прибыль, причитающаяся:
Акционерам Группы	28 549	23 326
Неконтролирующим акционерам	3 283	2 037
Итого совокупный доход, причитающийся:
Акционерам Группы	28 862	23 524
Неконтролирующим акционерам	3 283	2 037
Прибыль на акцию, причитающаяся акционерам Группы – базовая (в rubles)	8.50	7.43
Прибыль на акцию, причитающаяся акционерам Группы – разводненная (в рублях)	8,40	7,32

The maximum growth was shown by the Information Security digital cluster, whose revenue for the year increased by 47% to 8.9 billion rubles. Significant growth in the data center and cloud services cluster - 18%, revenue for the year increased to 35.3 billion rubles. The Digital Region cluster brought in almost 23.6 billion rubles, which is 7% more than a year earlier.

Revenue Structure by Service Type:

million rubles.	Q4 2021	Q4 2020	Change	2021	2020	Change
Мобильная связь	50 734	47 275	7%	194 345	176 958	10%
Фиксированный internet	27,256	23,625	15%	99,947	90,377	11%
Цифровые сервисы	37 942	30 442	25%	88 399	77 298	14%
Услуги телевидения	10 172	9 792	4%	39 913	38 004	5%
Оптовые услуги: *присоединение и пропуск трафика *VPN * renting channels * infrastructure services and services Fixed telephony Other services	17 3964 313 5 986 2 3484 74911 83113 001	(14%) (6%) (27%) (9%) 0,4% (11%) (29%)	74 075 17 760 29 729 9 707 16 87948 862 34 551	74 76217 803 29 722 10 095 17 14254 620 34 870	(1%) 0% 0% (4%) (2%) (11%) (1%)
Итого	168 332	163 009	3%	580 092	546 889	6%

Revenue Structure by Segment and Cluster:

million rubles.	Q4 2021	Q4 2020	Change	2021	2020	Change
1. Сегменты	90 449	93 602	(3%)	333 277	323 187	3%
- B2C	34 717	35 134	(1%)	138 430	138 290	0,1%
- B2B/G	39 853	43 044	(7%)	136 360	130 185	5%
- B2O	15 879	15 424	3%	58 487	54 712	7%
2. Цифровые кластеры	41 481	35 024	18%	89 569	75 656	18%
- ЦОД и облачные услуги	12 512	11 678	7%	35 276	29 981	18%
- Цифровой регион	10 255	9 604	7%	23 568	22 082	7%
- Информационная безопасность	4 818	4 054	19%	8 856	6 024	47%
- Прочие	13 896	9 688	43%	21 869	17 569	24%
3. Мобильный бизнес	53 813	49 673	8%	205 283	185 765	11%
4. Прочие	3 969	4 046	(2%)	14 917	17 380	(14%)
Элиминации и корректировки	(21 379)	(19 335)	-	(62 954)	(55 099)	-
Итого	168 332	163 009	3%	580 092	546 889	6%

OIBDA Structure by Segment and Cluster:

million rubles.	Q4 2021	Q4 2020	Change	2021	2020	Change
1. Сегменты	24 430	21 027	16%	110 952	97 515	14%
- B2C	6 306	6 525	(3%)	36 734	33 556	9%
- B2B/G	13 479	10 486	29%	57 231	49 522	16%
2. Цифровые кластеры	12 700	9 013	41%	25 438	20 586	24%
- ЦОД и облачные услуги	5 236	3 980	32%	15 245	12 450	22%
- Цифровой регион	1 919	1 196	60%	5 094	4 415	15%
- Информационная безопасность	2 204	1 852	19%	3 216	1 752	84%
- Прочие	3 341	1 985	68%	1 883	1 970	(4%)
3. Мобильный бизнес	21 806	17 878	22%	88 082	75 051	17%
4. Прочие	(6 469)	593	-	1 699	6 024	(72%)
Элиминации и корректировки	(3 351)	(4 020)		(7 357)	(5 126)
Итого	49 116	44 491	10%	218 814	194 050	13%

Revenue from services received in the operator market is reduced. Thus, infrastructure services and services brought 2% less than in 2020, and the rental of channels by 4%. The most significant drop in revenue in the fixed telephony segment: although services continue to bring significant income to the operator - almost 48.8 billion rubles, this is 11% less than last year.

As of December 31, 2021, Rostelecom's net debt amounted to 505.2 billion rubles, an increase of 8% by the beginning of the year.

As of December 31, 2021, 47.5 million subscribers used mobile communications from Rostelecom. Broadband access services provided through optical communication channels were used by 10.8 million kdients: of which 9.8 million were private and about 1 million were corporate and state. 6.4 million subscribers are connected to the IPTV service, 4.5 million to cable TV. The virtual PBX was acquired by 218 thousand customers. More than 12.5 million subscribers use local telephone services: 9.9 million private and 2.6 million corporate and state. Almost 2.5 million private subscribers and 0.2 corporate operators provide Internet access services using xDSL technology.

"Rostelecom" also said that in 2021 he built 41 thousand km of fiber-optic communication lines (VOLS), connected over 12 thousand socially significant objects to the Internet, and the length of the built communication lines exceeded the length of the equator.

2020

Revenue growth by 15%, to 546.89 billion rubles, profit - 25.35 billion rubles

Rostelecom's revenue following the results of its work in 2020 reached 546.89 billion rubles, which is 15% more than a year earlier. Net profit during this time rose by 16%, to 25.35 billion rubles. The company revised the 2019 figures in connection with the acquisition of Tele2.

In accordance with the group's accounting policy, the acquisition of Tele2 Russia was accounted for using the method of business combination under common control. According to this method, a business combination that arises from the transfer of a share in companies under the control of shareholders controlling the group is taken into account as if such a combination took place at the beginning of the earliest comparative period presented in the statements, or, if later, from the moment on which general control was established (for this purpose, comparative information is revised). Thus, the consolidated financial data for 2019 were revised and included Tele2 Russia indicators as if the acquisition of Tele2 Russia was completed on January 1, 2019.

In the mobile communication services market, Rostelecom earned 176.96 billion rubles in revenue in 2020, which is 15% higher than a year ago. Revenues from fixed Internet increased by 7%, to 90.38 billion rubles. Sales of television services increased by 2%, to 38 billion rubles. The decline in revenue by 10% (up to 54.6 billion rubles) was recorded in the fixed telephony segment.

As of December 31, 2020, Rostelecom's net debt amounted to 362.24 billion rubles against 333 billion rubles a year earlier. Thus, the debts of the telecom operator for the year increased by 9%.

One of the catalysts for Rostelecom's revenue growth was growing revenues from digital services and an increase in other revenues (an increase of 65%) due to the supply of a software and hardware complex for conducting a population census. Revenue growth was also provided by revenues from mobile communications, broadband Internet access (broadband access) and wholesale services.

In 2020, digital services provided Rostelecom with revenue of 77.23 billion rubles, which is 59% more than a year earlier.

The number of broadband access users increased by 2% year-on-year to 13.5 million (ARPU amounted to 395 rubles). The subscriber base of paid TV grew by 4% and reached 10.8 million users. Local telephone communications lost 10% of subscribers, reducing to 14 million users. Virtual telephony increased by 65%, to 160 thousand subscribers.

Private users in 2020 brought Rostelecom about 259.78 billion rubles in revenue, which is 6% more compared to 2019. Revenues from corporate and state-owned clients rose by a third, to 201.62 billion rubles.^[2]

Inclusion in the rating "Largest IT companies in Russia 2021"

Rostelecom is included in the rating "The largest IT companies in Russia 2021 by revenue in 2020," prepared by TAdviser in June 2021, where it took 7th place. Read more here.

Revenue with VAT - 77,298 million rubles

At the end of 2020, Rostelecom's revenue with VAT amounted to 77,298 million rubles.

The growth in demand for clouds and data center services spurred Rostelecom's revenue during the pandemic

According to the results of the 1st quarter of 2020, Rostelecom for the first time presented its consolidated financial statements, which include the performance indicators of Tele2, which the company acquired in 2019, and which is the fastest growing mobile player in the Russian market. Top managers of Rostelecom spoke about the performance indicators, as well as the impact on the company's business of the situation related to the pandemic, on May 19 during a conference call with analysts, which journalists could also listen to online.

Rostelecom's revenue increased by 10.3% year-on-year to 121.6 billion rubles. At the same time, net profit practically did not increase: its growth year-on-year amounted to 0.6%, to 7.7 billion rubles. While the dynamics of turnover turned out to be higher than a year ago, when it was 3% in the 1st quarter, the growth of net profit, one might say, collapsed: a year ago, in the 1st quarter of 2018, this figure increased by 46%.

However, this result looks much better than in the 4th quarter of 2019, when Rostelecom's net profit fell altogether - from 2.4 billion rubles for the same period in 2018 to 0.1 billion rubles.

During the conference call, top managers of Rostelecom focused on the most positive indicators of the company's activities, which is understandable and predictable. Questions sent by TAdviser to the chat about the growth of net profit in the company were ignored during the online broadcast, answering only one of the questions sent, which dealt with a different topic.

The company, however, touched on that figure slightly in the call and in text materials on its Q1 performance. Thus, Sergey Anokhin, Senior Vice President and Financial Director of Rostelecom, says that the low growth rate of net profit is mainly associated with the negative impact of currency revaluation.

In Q1, the company faced additional spending due to the need to scale infrastructure and purchase individual protective equipment for employees. The total amount of expenses for these purposes, which will be required for the entire 2020, in Rostelecom is estimated at about 1 billion rubles.

In addition, as in the previous two quarters, there was a noticeable increase in personnel costs, said Sergey Anokhin. This, firstly, is explained by the increase in salaries of junior grade employees, which was held in 2019. And secondly, this is due to the dynamic growth of Rostelecom's locomotive direction of cloud services and cybersecurity. It had an impact on the salary factor and the impact of the acquisition of a number of companies in the second half of 2019.

Due to a sharp jump in exchange rates in the 1st quarter, which followed the fall in world oil prices, Rostelecom agreed in a number of directions to postpone part of the payment to suppliers to a later period. This, according to Anokhin, concerns, for example, equipment for the further development of the mobile network.

As for revenue, digital services and mobile communications in the company are called its main drivers in the reporting period. The share of mobile services in Rostelecom's total revenue structure amounted to 34%, which is 2 percentage points more than in Q1 2019. Revenue from mobile business grew by 16%, the indicator of outflow of cellular subscribers decreased to 8.6% against 9.3% a year earlier.

Digital services accounted for 10% of the turnover. Collectively, this direction showed an increase of 67% year-on-year. And revenue from the data center, XaaS and cybersecurity segment, in particular, increased 2.5 times. According to Rostelecom, the direction of the data center increased by 92% year-on-year, the virtual data center - by 2.8 times, the information security services - by 4.7 times. Revenue from virtual PBX increased by 46%.

In the new conditions, the direction of digital services gives the company growth potential, the president of Rostelecom Mikhail Oseevsky is sure. During a conference call, he noted that the demand for cloud technologies has seriously increased amid the need to expand computing power.

First Vice President of Rostelecom Vladimir Kiriyenko noted that in the 1st quarter the demand for these services increased both from corporate customers and from the public sector. Largely due to this direction, the segment of corporate clients and state customers has grown by 26%. For comparison, retail - by 5%.

In April, according to Kiriyenko, the need for data center services and cloud services became even greater.

The dynamics of the month of April shows the same growth and sometimes even faster, because the demand for computing power for many corporate and state customers has become avalanche-like. This is due to the fact that the number of calls to various remote services began to exceed the volume of ordinary business turnover, - Kiriyenko told TAdviser. - For data centers, information security, remote work services, this is a period of rapid, sometimes three-digit, growth rate.

From the words of the top manager of Rostelecom, it follows that the pandemic by mid-May did not greatly affect the plans for digitalization in the public sector and large companies. Vladimir Kiriyenko told TAdviser that the company as of May does not see any significant sequestration of IT budgets in the public sector and among large corporate customers.

As for one of the anchor directions for Rostelecom - broadband Internet access - Mikhail Oseevsky noted that since the end of March and the beginning of April, the demand for connections has grown by about 20-25%. This is due to the fact that employees of many organizations switched to remote work, and schoolchildren and students switched to distance learning. At the end of the quarter, the share of fixed broadband access in Rostelecom's turnover amounted to 18%.

Rostelecom, on the one hand, believes that the first months of work ensured a high financial result and a good reserve for the entire current year. At the same time, in connection with the pandemic, the company has developed several scenarios for the development of the situation in the economy, the economic activity of enterprises, the population and state institutions, Sergei Anokhin said. According to him, a program of action was adopted for each of these scenarios. During the conference call, top managers chose not to disclose the details of this program, gracefully avoiding a detailed answer to the question asked on this topic.

2019

Revenue growth in the IaaS segment up to 3 billion rubles

According to the rating of the Russian market for public cloud services of the analytical company TMT Consulting, in 2019 the revenue of the Rostelecom group of companies in the IaaS segment increased one and a half times (to 3 billion rubles). Rostelecom announced this on July 27, 2020. Together with the cloud provider DataLine, which Rostelecom acquired at the end of 2019, the group of companies strengthened its market position and became the market leader with a share of about a quarter of the IaaS segment. According to analysts, the total volume of the IaaS market amounted to 23 billion rubles, which is 38% more than in 2018.

In 2019, Rostelecom's IaaS direction grew by 46%. The active development of the functionality of the'Virtual Data Center' product, the launch of cloud services on additional sites, the start of the white label partner program and a number of large projects with commercial and state customers allowed us to achieve such growth rates, - said Alexander Obukhov, Director of Cloud Services and Data Center Rostelecom. - In 2020, we have all the prerequisites to maintain and increase the accumulated dynamics of indicators due to the joining of DataLine and the integration of their products and competencies into our cloud direction. The undoubted driver will also be the further development of Rostelecom's cloud platform both in terms of emerging services and representation in the regions.

TMT Consulting analysts note that the dynamics of the IaaS segment in 2020 will continue due to a sharp surge in demand for computing power for remote business formats in the first half of the year. In the five-year perspective, the average annual growth rate of the IaaS market is predicted at 25%, and by 2024, taking into account additional drivers and maintaining the priority of the tasks of the national program "Digital Economy of Russia," its volume will triple.

Revenue growth by 5%, net profit - by 10%

In February 2020, Rostelecom presented its audited financial results. The company's revenue in 2019 reached 337.42 billion rubles, an increase of 5% compared to the previous year.

The growth was largely facilitated by the provision of digital services, Rostelecom notes. Annual revenues from broadband Internet access services increased to 83.87 billion rubles from 80.04 billion rubles a year earlier. Television services brought Rostelecom 37.13 billion rubles, surpassing the result of a year ago at 34.46 billion rubles.

In the fixed telephony market in 2019, the operator earned 61.74 billion rubles. In 2018, revenue was higher and measured at 69.99 billion rubles. The company raised 49.8 billion rubles on cloud and VAS services, while in 2018 these revenues amounted to 36.9 billion rubles.

The number of operator subscribers increased in almost all sectors. The growth in the number of Internet users amounted to 2% (13.2 million by the end of 2019), users of paid television services - by 3% (of which the number of Interactive TV subscribers increased by 6% to 5.6 million), virtual operator subscribers - 41% (up to 1.7 million). At the same time, the number of local telephone subscribers continues to decline: it fell by 10% and by the end of 2019 amounted to 15.7 million. 

The average revenue from one subscriber of broadband access Internet services reached 402 rubles, an increase of 2%. In the pay-TV segment, there was an increase of 2% to 255 rubles.

Among the areas that showed the greatest growth are information security (growth - 68%), data center services (50%), smart city projects (50%). In absolute terms, revenue from them amounted to 3.7 billion, 10.8 billion and 34 billion rubles, according to TAdviser in Rostelecom. The president of the company, Mikhail Oseevsky, in a conversation with TAdviser, noted that the direction of DLP solutions, which are used by a number of large customers, including Sberbank, Russian Railways and Rosneft, showed especially good results in the information security business.

Rostelecom completed 2019 with a net profit of 16.47 billion rubles, which is 10% higher than the profit a year ago. Net income was 4.9% of revenue versus 4.7% in 2018.

Good results in 2019 were made possible thanks to the efforts of all blocks of client segments on the path of digital transformation and the promotion of modern digital services. At the same time, the segment of corporate and state clients, on the sustainable development of which we rely, showed the best double-digit growth - 13% year-on-year, - said Vladimir Kiriyenko, First Vice President of Rostelecom.[3]

Earlier, at the end of February, Tadviser wrote about the preliminary, unaudited financial results that Mikhail Oseevsky represented at a meeting of the Federation Council. They did not differ much from the audited ones: the announced revenue was more than 335 billion rubles, the profit was about 16 billion rubles. The company's OIBDA reached about 106 billion rubles, an increase of about 5% over the year.

The volume of Rostelecom's investment program in 2019 amounted to 100 billion rubles, of which 70 billion are the company's own funds and 30 billion are federal budget funds, Oseevsky cited the data.

The President of Rostelecom at a meeting of the Federation Council recalled that the company recently acquired Tele2. Taking this into account, Rostelecom at the end of 2020 will be the largest digital company in Russia with revenue of more than 500 billion rubles, Oseevsky said.

Speaking to senators, Oseevsky noted that the company is rapidly transforming: from an operator, it is turning into a provider of digital services for humans, businesses and the state. The main direction for Rostelecom is now the provision of services to citizens. First of all, this is broadband Internet access (broadband access). The company invests a lot in this area, says Mikhail Oseevsky. According to his estimates, the company occupies 41% of the broadband access market.

And with the acquisition of Tele 2, the company will be able to provide cellular services that will complement its palette of services for citizens, Rostelecom expects.

Rostelecom is also expanding the range of services for citizens through solutions and services for the smart home. Every month the company installs about 20 thousand sets of such devices.

The second largest area is the provision of services to legal entities. In total, Rostelecom has more than 600 thousand customers here, including the largest Russian companies, but a special priority, according to Oseevsky, is medium and small businesses, for which there are special solutions.

Next in terms of volume in equal shares are projects for the state and partners in the operator business. According to preliminary estimates, according to management reporting, interaction with telecom operators accounts for approximately 15% of Rostelecom's business.

Oseevsky stressed that one of the growth drivers for Rostelecom is participation in the Digital Economy national program. In its three areas, the company plays an "exceptional role": the direction of information infrastructure, where the government appointed Rostelecom a competence center, state administration and information security.

Among recent infrastructure projects, Mikhail Oseevsky led the laying of underwater cables to Sakhalin, Kamchatka, Magadan, the Kuril Islands, and now residents of these remote territories have the opportunity to use all the same products and services as other residents of the country. And in 2021, Rostelecom will begin laying a cable to Chukotka.

Among other projects within the framework of the Digital Economy information infrastructure is the elimination of digital inequality, which involves providing small settlements with Internet access.

An important area of ​ ​ digital infrastructure is data centers, the president of Rostelecom noted: this is the brain of the digital economy. Rostelecom is the largest operator of such services, says Oseevsky: more than 25% of all information in the country is stored in Rostelecom data centers.

The company is implementing a large-scale program for the construction of data centers throughout the country, and in the near future plans to complete the construction of data centers in the capitals of federal districts, after which it will proceed to their creation in the capitals of other constituent entities of the federations. The data today should be as close as possible to users, Oseevsky emphasized.

As for the direction of information security, Mikhail Oseevsky calls Rostelecom the largest operator providing commercial services to the state and business in providing information security. Among its clients are a number of federal departments, the largest Russian companies. In 2019, more than 1 million attacks on customers and Rostelecom's own infrastructure were repelled. Four information security centers were created for round-the-clock monitoring. This is the fastest growing direction of the company, said the president of Rostelecom.

Investments in the Russian Aurora OS depreciated by a third

On June 19, 2019, it became known that Rostelecom had written off one third of its investments in the Russian Aurora mobile operating system. Read more here.

2018: Revenue growth to 320 billion rubles

Rostelecom 's revenue in 2018 increased by 5%, to 320.2 billion rubles, the company said in March 2019. Net profit increased by 7%, to 15 billion rubles. OIBDA for the year increased by 4% to 100.9 billion rubles.

Capital investments amounted to 73.2 billion rubles. (22.9% of revenue), an increase of 20% compared to the same period last year (60.8 billion rubles and 19.9% of revenue for 12 months of 2017 ).

More than half of the company's revenue - 55% - in 2018 came from digital and content services. Due to the recruitment of the base and the growth of ARPU, Rostelecom's revenues in its main pay TV and broadband access markets increased. The company notes that the demand for additional services and new services is growing, which the company is actively promoting in the market. In particular, in 2018, Rostelecom recorded a twofold increase in revenues for Corporate TV and Federal Wi-Fi services.

Sales of information security services quadrupled, the customer base of the Smart Home ecosystem increased 16 times over the year, and revenues in this area - 24 times.

At the same time, the implementation of the Digital Economy projects in Rostelecom is called one of the drivers of revenue growth. The increase in revenue from smart city projects, in particular, in 2018 increased by 46%, to 23.2 billion rubles. Among the key projects implemented in this area, Rostelecom calls video surveillance of the presidential elections, the connection of medical institutions to the Internet and the completion of the construction of the underwater part of the FOCL in the Kuril Islands.

One of the largest projects in 2018 was also the completion of the creation of a unified corporate data network "Russian Post," which covered 37 thousand postal facilities, including more than 15 thousand points of presence of "Post Bank."

Among other areas that showed the greatest growth were cloud services and additional services: it grew by 42%. A significant share of this area is made up of different services. DPC Thus, revenue from Virtual Data Center services/increased by IaaS 40%.

Rostelecom President Mikhail Oseevsky recalled that in 2018 Rostelecom began implementing a development strategy until 2022, the main priorities of which were improving the ecosystem of products and services, increasing efficiency, modernizing our technological platform, and developing the company's team. He added that Rostelecom is turning into a provider of digital services for the state, business and citizens.

Against the background of the new strategy, the structure of the company's investments is changing: the share of investments in the development of new products and increased efficiency is increasing, Rostelecom noted.

At the end of 2019, Rostelecom expects positive dynamics of the main financial indicators: revenue growth and OIBDA of at least 2.5%, CAPEX within 65-70 billion rubles, taking into account 7 billion rubles of regulatory CAPEX and excluding the implementation of state programs.

2017

100% of net profit under IFRS will be paid with dividends

On June 18, 2018, the Annual General Meeting of Shareholders approved the payment of dividends for 2017 on the company's shares in the amount of 14.050 billion rubles, which is 100% of net profit under IFRS. Dividends are proposed to be paid in cash as follows:

• on Type A preferred shares of 5.05 ruble per share;
• for ordinary shares in the amount of RUB 5.05 per share.

At the same time, the shareholders set the date on which the persons entitled to receive dividends for 2017 are determined: July 8, 2018.

Revenue - more than 300 billion rubles

The head Rostelecom of Mikhail Oseevsky "" in January 2018 reported to the president Russia Vladimir Putin about the growth of the operator's revenue in 2017. At the end of the year, the figure will exceed 300 billion rubles.

Our investment program of more than 60 billion rubles has been fully financed. Let's show net profit at the level of 13-14 billion rubles. In general, within the framework of the strategy, we assume an increase in our income at a rate higher than inflation, "Oseevsky told the president.

According to him, the updated strategy of Rostelecom involves focusing the company on five main areas: the development of the basic infrastructure, including communication networks and data centers; expanding the access of citizens and businesses to the Internet; industrial internet and e-government tools, as well as information security.

In general, over the next five years, we plan to invest more than 300 billion rubles of our own funds in all these areas. Here, indeed, the priority is the further development of infrastructure. We will develop trunk channels, including in the Europe-Asia corridor, "Oseevsky added.

The main priority of the company, as he specified, will be the development of access in areas of mass housing development. At the end of 2018, it is planned to complete work on laying an underwater cable in the Far East and connect the Kuril Islands to the Internet.^[4]

• Revenue increased by 3% to RUB 305.3 billion compared to 12 months of 2016;
• OIBDA grew by RUB 0.085 billion to RUB 96.9 billion compared to 12 months of 2016;
• OIBDA margin was 31.7% compared to 32.5% for the 12 months of 2016;
• Net profit increased by 15% to RUB 14.05 billion compared to 12 months of 2016;
• Capital investments amounted to RUB 60.8 billion (19.9% of revenue), a decrease of 2% compared to the same period in 2016 (RUB 61.9 billion and 20.8% of revenue for 12 months of 2016);
• FCF grew by 53% to RUB 20.4 billion compared to 12 months of 2016, improving by RUB 7.1 billion.

AA Credit Rating (RU), Stable Outlook

On July 19, Rostelecom announced that Analytical Credit Rating Agency (ACRA) assigned the company a credit rating of AA (RU) with a stable outlook. This rating indicates a high level of creditworthiness of the company.

The agency's report says Rostelecom's credit rating is driven by the company's strong business profile and market positions, high liquidity and moderate support from outside. states

Kai-Uwe Melhorn, Senior Vice President and CFO: "We believe that assigning this rating opens up additional opportunities for the company to attract public debt financing, including to optimize our debt portfolio."

2016

The Board of Directors recommended to pay 15 billion rubles of dividends

The Board of Directors of Rostelecom approved in May 2017 the agenda of the annual general meeting of shareholders and gave recommendations on dividends for 2016. At the meeting of shareholders, it was recommended to send to the payment of dividends on ordinary and preferred shares in the total amount of 15 billion rubles, which is 113% of the free cash flow and 122% of the company's net profit.

Dividends are proposed to be paid on type A preferred shares - in the amount of 5.39 rubles per share, on ordinary shares - in the amount of 5.39 rubles per share.

The Board of Directors also determined the dates for compiling a list of persons entitled to participate in the General Meeting of Shareholders and to receive dividends - May 25 and July 7, 2017, respectively. The general meeting of shareholders of the company will be held on June 19.

"The level of dividends proposed by the Board of Directors for approval by the General Meeting of Shareholders corresponds to the actual results achieved by the Company in the reporting period. This year, the company proposes to significantly increase the share of distributed free cash flow, thereby demonstrating its commitment to fulfilling the basic principles of our dividend policy, namely to send our shareholder more than 3/4 of free cash flow, but in any case at least 45 billion rubles in 3 years, without increasing the debt burden. We believe that the proposed level of 5.39 rubles per share allows maintaining a high dividend yield and is generally within the framework of the company's current policy, "said Mikhail Oseevsky, President of Rostelecom

.

Revenue 297 billion rubles

• Revenue increased by RUB 91 million to RUB 297.4 billion;
• OIBDA decreased by 4% to RUB 96.8 bln;
• OIBDA margin was 32.5% compared to 33.9%;
• Net profit decreased by 15% to RUB 12.2 billion;
• Capital investments amounted to RUB 61.9 billion (20.8% of revenue), which decreased by 1% compared to the same period last year (RUB 62.7 billion and 21.1% of revenue for 12 months of 2015);
• FCF amounted to RUB 13.3 billion against RUB 22.0 billion.

• The share of the Digital Segment in revenue was 44%;
• Rostelecom's share in new connections at the end of 2016 in the pay-TV market amounted to about 50% and in the broadband access market - more than 50%;
• Stable high growth rates of the broadband subscriber base in terms of optical technologies (+ 17%) and IPTV (+ 24%) remain;
• B2B/G segment showed revenue growth of 2.5% yoy.

For the 12 months of 2016, operating expenses less amortization increased by 2% compared to the same period in 2015 and amounted to RUR 202.0 billion. The dynamics were influenced by the following factors:

• an increase of 5% (by 2.3 billion rubles) in expenses for the services of telecom operators, including due to an increase in content costs caused by an increase in the number of pay-TV subscribers;
• 11% decrease (by 1.7 billion rubles) in other operating income, mainly in terms of the project to eliminate digital inequality; excluding reimbursement for the CSP project, other operating income grew by 94%;
• more than twofold increase (by 2.4 billion rubles) in profit from disposal of fixed assets, mainly due to the closure of the transaction on the creation of a sub-fund of real estate in the form of a joint venture with Sberbank;
• significant recovery of allowance for doubtful debts in 2015;
• 1% reduction (by RUB 0.7 bln) in personnel costs, mainly due to staff optimization.

2015: Revenue decline, profit growth

On March 14, 2016, Rostelecom announced performance indicators in accordance with international financial reporting standards. The operator's revenue declined slightly, but net profit rose 9%.

At the end of 2015, Rostelecom's revenue amounted to 297.4 billion rubles against 298.9 billion rubles a year earlier. Revenue was negatively impacted by a 10 percent decline in fixed-line telephony revenue. The operator's net profit for the year rose to 14.4 billion rubles from 13.2 billion rubles.

In 2015, Rostelecom's pre-tax profit fell to 16.8 billion rubles from 20.4 billion rubles in 2014. This decline in the company was associated with the negative impact of currency fluctuations and the consolidation of the loss of Tele2 and other subsidiaries. In addition, the growth of the contribution to the revenue of the segment of growing, but less profitable than voice, digital services affected, the operator said in a statement.

According to the financial director of Rostelecom Kai-Uwe Melhorn, Tele2's entry into the Moscow region market (held in October 2015 - approx.) TAdviser Brought the company a loss of 3.5 billion rubles. According to data, Tele2's TMT Consulting share in the Russian mobile market amounted to 14% in 2015.

According to Rostelecom, by the end of 2015, the company had 11.6 million subscribers of broadband Internet access (broadband access) services, which is 4% more than a year earlier. The number of corporate clients in this market decreased by 3%. The number of subscribers connected by optics increased by 22% to 6.3 million (54% of the subscriber base).

As of the end of 2015, Rostelecom's pay TV subscriber base reached 8.6 million, an increase of 8% on an annualized basis. The number of users of interactive TV increased by 26% during this period - up to 3.4 million. The number of telephone subscribers decreased by 9% to 22.1 million.^[5]

2014: Decrease in net profit by 16% to 29.5 billion rubles

The net profit of the Russian operator Rostelecom in 2014 fell by 16.4%, from 35.3 billion to 29.5 billion rubles. This is evidenced by the reporting data on RAS (Russian accounting standards), RBC reported in March 2015.

In 2014, Rostelecom spent 46.1 billion rubles to pay off long-term obligations, reducing their volume to 138.9 billion rubles. Instead, short-term liabilities increased by 29.7 billion rubles, to 53.7 billion rubles.

The company's revenue grew to 290.6 billion rubles, which is 2.3% higher than last year.

2013: Reduction of all key indicators

In August 2013, Rostelecom predicted revenue at 327 billion rubles. at the end of 2013, and by 2016 it will grow to 407 billion rubles. Net profit in three years will increase by 15%, to 60 billion rubles, but profitability may be under pressure due to the need to invest in the network. Such indicators imply an adjusted strategy of the company, it will be presented to the board of directors for approval in October-November 2013^[6]

The company predicted that in 2013 net profit could amount to 25 billion rubles, in 2014 - 40 billion rubles. The merger of Svyazinvest with Rostelecom will give revenue growth of 1% in 2013 and 3% in 2014. Without the effect of the merger of Svyazinvest, Rostelecom predicted revenue for 2013 in the amount of 327 billion rubles, OIBDA according to the company's forecasts in 2013 will amount to 120 billion rubles, and by 2016 will increase to 150-160 billion rubles. By 2016, the company planned to increase revenue by 7%, to 407 billion rubles.

When in March 2014 Rostelecom published the financial results for 2013, it turned out that the company's revenue did not meet the forecast and decreased by 2% to 325.7 billion rubles, the OIBDA indicator (operating profit before paying interest on loans and depreciation expenses) fell by 6% to 113 billion rubles. Operating profit decreased by 17% to RUB 45 billion. Net profit decreased even more - by 27% to 24 billion rubles.

In the fourth quarter of 2013, the company's net profit decreased by 62% compared to the same period in 2012, amounting to 1 billion rubles. The company explains this by one-time write-offs made due to the revaluation of Rostelecom's buyback option of 2.7% of its own shares from Deutsche Bank and RDIF, as well as the tax effect caused by the creation of reserves for doubtful debts by Sky Link (a cellular subsidiary of Rostelecom). Capital investments for the year decreased by 27% to 68.5 billion rubles.

Of the types of business, the worst things were in the areas of long-distance communications and rental of channels. Revenue from each of these areas decreased by 17% in 2013 to RUB 17.1 billion and RUB 9.5 billion, respectively. Revenues from zone communication continue to fall: they decreased by 13% to 17 billion rubles.

By 5% - to 38.9 billion rubles. - fell revenue from mobile communications. At the same time, the net loss from cellular communications in 2013 increased almost 7 times 2.5 billion rubles. Operating loss from this area amounted to 366 million rubles. (a year earlier, operating profit amounted to 1.35 billion rubles). At this time, Rostelecom is in the process of transferring its cellular business to a joint venture with Tele2.

The most profitable business of Rostelecom remains local telephone communications - 87.5 billion rubles (decreased by 2%). The fastest growing segment is pay television: growth amounted to 29%, revenue reached 11.7 billion rubles.

Revenue from passing inter-operator traffic increased by 13% to 24.5 billion rubles, from broadband Internet access - by 9% to 56 billion rubles. Cloud services grew by 10% to 23 billion rubles.

If we consider income by type of clients, then revenue from state customers decreased by 16% to 45 billion rubles, from corporate clients, on the contrary, increased by 4% to 74 billion rubles. Revenues from individuals and other telecom operators practically did not change, amounting, respectively, to 165 billion rubles. and 40 billion rubles.

The number of Rostelecom fixed-line telephone subscribers continues to fall: over the year it decreased by 6% to 26.5 million. The number of broadband Internet users, on the contrary, is growing: over the year it increased by 12% to 10.6 million. Of these, 62% are connected using xDSL technologies, 38% - using FTTB. The number of cellular subscribers increased by 9% to 14.8 million (the growth was due to the Ural and Siberian regions).

The number of pay-TV subscribers increased by 12% to 7.5 million, of which 71% were cable TV users, 29% were IPTV users.

2012: Revenue growth by 7% to RUB 321 bln

The Group's revenue for 2012 amounted to RUB 321.3 billion and increased by 7% compared to 2011. The revenue structure has changed in favor of growing segments, including mobile communications, broadband access, and pay TV. OIBDA margin amounted to 36.9%, reflecting the effects of the active development of the mobile direction in the regions of construction of 3G + networks in the 4th quarter of 2012, an increase in the share of fast-growing but less profitable than traditional revenue segments, the creation of provisions for compensation to employees as part of the 20% optimization of administrative personnel planned for 2013. Net profit for 2012 amounted to 35.2 billion rubles. Net debt as of December 31, 2012 amounted to RUB 203.1 billion. In 2012, the total debt of OJSC Rostelecom increased by 24%, amounting to 214.4 billion rubles.

2011

Year-end results: voice telephony - 58% of revenues

Rostelecom's revenue for 2011, determined in accordance with Russian Accounting Standards (RAS), amounted to 296 billion rubles. Net profit of Rostelecom in 2011 amounted to 46.1 billion rubles, consolidated revenue amounted to 296 billion rubles.

Revenue structure:

• voice telephone services - 58% of all revenues of the company - more than 124 billion rubles.
• data transmission services - 23% of revenue (more than 49 billion rubles).
• cellular services - 5.1% (about 10 billion rubles)
• provision of communication channels - 4.5% (approximately 9 billion rubles).
• services of television and radio broadcasting, satellite and radio communications - 1.5% (just over 3 billion rubles).

The financial results for 2011 are based on the indicators of Rostelecom for Q1 2011, i.e. before the merger of seven interregional communications companies and Dagsvyazinform, as well as the indicators of the combined company for Q2, Q3 and Q4 2011, and according to RAS excluding its subsidiaries (including NTK and mobile subsidiaries).

It was predicted that the turnover of Rostelecom after the inclusion of seven interregional companies in its composition will amount to approximately 300 billion rubles. And the synergistic effect of the association in four years is 30 billion.

Rostelecom's revenue from work on state contracts related to the development and support of e-government in 2011 amounted to 2.76 billion rubles. ($94.1 million at the average annual exchange rate of the Central Bank), and operating profit from these projects - 575 million rubles. ($19.6 million), follows from the operator's annual report. Thus, the profitability of Rostelecom's work on electronic government exceeded 20%.

"The contract is not unprofitable for us, but not Klondike," Rostelecom President Alexander Provotorov said in an interview with Vedomosti in April about the implementation of a state project to create an electronic government infrastructure.

This agreement with Rostelecom was concluded in December 2009 without a tender - on special instructions from the government.

Rostelecom earns the main money in this project in the regions. In 2011, the federal budget allocated 619.3 million rubles for the operation of e-government infrastructure. Thus, contracts in the regions accounted for approximately 2.1 billion rubles. Unlike the federal, all these contracts are competitive, Provotorov emphasized. According to him, the operator signed about 70 agreements of intent and more than 50 firm contracts^[7].

Rostelecom's revenues from e-government more than doubled in 2011 - by 132%. In the structure of its revenue, this direction occupies less than 1%.

Operating profitability is also growing - in 2010 it was in the region of 5%. Rostelecom expects that the profitability of this area will be at the level of its other businesses, says the representative of the operator Kira Kiryukhina.

In terms of profitability, the electronic government is comparable to international and long-distance communications, a source in the company knows. For projects of this type, 20% is the usual profitability, says the general director of the system integrator. And IBS Sergey Matsotsky to the founder of the system integrator "" LANIT Georgy Gens, such profitability under the state contract for the IT project "seems like a fairy tale": competition has now worsened and the margin has decreased as a result. Apparently, the main profit in this contract is brought to Rostelecom by the operator part, he suggests.

However, it is not clear how Rostelecom was able to allocate from its costs those that relate specifically to contracts under the electronic government, an employee of another integrator is surprised and considers this figure "paper."

9 months: 2% increase in net income

Net profit of Rostelecom under IFRS for the 9 months of 2011 increased by 2% to 29.397 billion rubles. from 28.885 billion rubles. compared to the same period in 2010. Revenue increased by 7% to RUB 217,458 billion from RUB 203,287 billion. OIBDA grew by 5% to 85.517 billion rubles. from 81.525 billion rubles, OIBDA margin amounted to 39.3%.

First half of the year: net profit growth by 6 times

According to IPS DataCapital, Rostelecom's net profit under RAS in the first half of 2011 increased 6.23 times to 13.939 billion rubles. from 2.233 billion rubles. for the same period in 2010. Revenue grew 2.8 times to 79.875 billion rubles. from 28.467 billion rubles, profit from sales - 4.91 times to 15.763 billion rubles. from 3,209 billion rubles.

2010

Reaching second place in terms of revenue in the communications industry at the end of the year

The unaudited consolidated revenue of the combined Rostelecom under IFRS in 2010 amounted to 275.7 billion rubles. ($9.05 billion at the Central Bank exchange rate as of December 31, 2010).

Net profit - 40.8 billion rubles. ($1.34 billion).

This is the first reporting of the company after seven interregional communications companies (MRKs) and Dagsvyazinform, which were previously controlled by Svyazinvest, joined it on April 1, 2011. This reporting will become the basis for comparing the results that a single company will show in 2011, the representative of Rostelecom explained.

In terms of revenue for 2010, the combined Rostelecom was ahead of Megafon, which in 2010 earned 215.5 billion rubles. And if we take into account only Russian operations, then Rostelecom was ahead of VimpelCom, losing only to MTS, whose Russian revenue amounted to 286.4 billion rubles. Nevertheless, the profitability of the combined OIBDA company turned out to be worse than that of the Big Three operators - 40.2%. For Russian MTS operations, this figure was 43.4%, for Megafon - 45.4%, and for VimpelCom - 46.2%. Compared to the operators of the Big Three, the share of Rostelecom's mobile business is small, and the margin of a fixed business is much less, explains Evgeny Golosnoy, an analyst at Troika Dialog. For a company that is mainly engaged in fixed communications, 40.2% is a good indicator of profitability, he said. Moreover, tariffs for part of Rostelecom's services are regulated by the state, recalls Golosnoy.

The combined Rostelecom in 2010 received 32 billion rubles from mobile business. revenue, which is only 11.6% of all revenues of the company. The Big Three operators, on the contrary, still earn most of the revenue from mobile communications: MTS in Russia has this share of 82.7%, VimpelCom - 83.6%, and Megafon - 96.5%.

Financial indicators for the third quarter

Revenue amounted to RUB 15.8 billion, including revenues from new and additional services, which increased by 16% to RUB 5.8 billion (37% of revenue compared to 32% in the third quarter of 2009);

Adjusted OIBDA (net of accrual of non-cash expenses under the long-term incentive program for employees in the amount of RUR 461 million) amounted to RUR 3.2 billion; OIBDA margin 20.3%;

Net profit adjusted for non-monetary accrual of expenses under the long-term motivation program for employees amounted to 1.4 billion rubles.

Capital investments amounted to 2.8 billion rubles. (17.5% of revenue)

The main financial indicators for the nine months of 2010:

Revenue amounted to 45.8 billion rubles, including revenues from new and additional services, which increased by 10% to 16.5 billion rubles (36% of revenue compared to 31% for the nine months of 2009);

Adjusted OIBDA (net of accrual of non-cash expenses under the long-term incentive program for employees in the amount of RUR 461 million) amounted to RUR 9.0 billion; OIBDA margin increased to 19.7%;

Net profit adjusted for the accrual of non-cash expenses under the long-term motivation program for employees amounted to 3.3 billion rubles.

Capital investments amounted to 7.7 billion rubles. (16.9% of revenue)

The company's capitalization as of November 2010 is 120.5 billion rubles.

Q1: Sharp drop in revenue

In the first quarter of 2010, Rostelecom's revenue under RAS decreased by 8.2% compared to January - March 2009 to 14.1 billion rubles, the operator said. This is the largest drop in at least five years, says Veles Capital analyst Ilya Fedotov. The reason is a decrease in revenues from traditional long-distance communications (in 2009, it provided 71.4% of Rostelecom's revenue). Traffic goes into the network of cellular operators, admits an employee of the Rostelecom press service.

Until 2006, all operators were required to send long-distance and international calls through the Rostelecom network, but then other operators began to receive licenses for the right to provide these services on their own. Now there are about 20 of them, including MTS, VimpelCom and Megafon.

At first, the expansion of the "Big Three" was restrained by the lack of trunk channels. They had to be rented from Rostelecom, MTT, Transtelecom, and the calls came out expensive. But in 2008, VimpelCom acquired Golden Telecom with a powerful cable network, and MTS and Megafon began to build their networks. As a result, mobile cities and calls abroad fell significantly in price.

2008: Revenue 66 billion, net profit - 7 billion rubles

• Revenue - 66.6 billion rubles. (2008, IFRS)
• Net profit - 7 billion rubles.

Notes