ER-Telecom Дом.ру

CJSC ER-Telecom Holding is a telecommunications service operator in the largest Russian regions, a triple-play service provider: cable television (Diwan-TV), permanent Internet access for individuals (Дом.ру, formerly Дом.ru) and organizations, IP telephony and telephone communications "GorSVYAZ." The basic areas of the company's activities are implemented in each city on the basis of the City Universal Telecommunications Network, built using the "optics to home" technology.

Owners

The holding is 68% owned by the Perm financial and production group of Andrei Kuzyaev, 9% are owned by Baring, 16% by management. Another 7% of the provider's shares belongs to Enforta, which received this stake as a result of a transaction to sell its assets to ER-Telecom.

Aktivs

DPCs

• ER-Telecom Data Centers

• The LoRaWAN network of ER-Telecom is registered in a single list of operator-class networks and has an international NetID - 52, which provides the ability to provide roaming
• The Holding's telecommunications platform is based on the operator-level platform of Actility, a provider of solutions for high-load LoRaWAN networks

2012

At the end of 2012, ER-Telecom ranked second among Russian access operators Internet after Rostelecom"." Its market share was 11.2 percent, or 2.45 million subscribers.

The operator provides broadband access (broadband access) to the Internet and cable television in 17 cities of the Volga region, the Urals and Siberia - a total of 4 million households, occupying 39% of the cable TV market and 32% of the broadband market. The company ranks fourth in Russia both in terms of the number of broadband access subscribers (according to AC&M Consulting) and in terms of the number of pay TV subscribers (iKS-Consulting).

As of December 31, 2012, the total subscriber base of the company amounted to 3,009 thousand apartments. The increase in the subscriber base compared to 2011 amounted to 644 thousand square meters. or 27%.

The company provides services under the following brands:

• cable television "Sofa-TV,"
• telephony, GorSVYAZ""
• services for ER-Telecom corporate clients,
• Broadband Internet access "ДОМ.ru"

Дом.ру Business

Дом.ру Business is a corporate brand of the Russian telecommunications holding ER-Telecom, which provides a full range of triple play services - broadband Internet access, cable and HD television, fixed telephone communications. Package offers are formed from basic communication services (broadband and Wi-Fi Internet access, telephony, cable television) and cloud solutions (video surveillance, cloud PBX).

2013

In 2013, the operator presented industry proposals developed taking into account the specifics of service enterprises, retail, catering, as well as offices of small and medium-sized businesses.

Geography of 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 on the basis of their own urban universal telecommunication networks (GTS), built from scratch and according to the same standards in each city of presence using the "optics to home" technology. Networks are reliably reserved, their performance is analyzed around the clock from a single Monitoring Center, which allows you to respond to possible failures proactively. The indicator of fault tolerance of the company's network - 99.9% - is at the level of the leaders of the European telecom market.

Performance indicators

2020: Revenue growth by 20% to 53.6 billion rubles

On April 2, 2021, ER-Telecom Holding JSC, the national operator of information and communication services, shared with TAdviser the consolidated financial results for 12 months of 2020.

Consolidated revenue increased by 20% compared to the same period in 2019 and reached 53,625 million. rub

OIBDA increased by 26% compared to the previous period to RUB 21,471 million. OIBDA's margin was 40%.

Net profit amounted to 4,286 million rubles, an increase of 67% compared to the same period in 2019.

CAPEX increased by 24% compared to the same period in 2019 to 12,862 million rubles.

Net debt as of December 31, 2020 amounted to 62,004 million rubles, or 2.9x of the indicator "Net debt/OIBDA LTM."

B2B revenue increased by 49% compared to the previous period and amounted to 24,097 million rubles.

B2C revenue grew by 3% to RUB 29,528 million.

{{quote 'author = said Andrey Kuzyaev, President of ER-Telecom Holding JSC. | The economic crisis associated with the coronavirus pandemic has negatively affected the growth and development rates of our company. The twofold increase in traffic led to significant additional investment in infrastructure. However, the developed and implemented plan of anti-crisis measures, thanks to high-quality and successful teamwork, allowed us to ensure the fulfillment of our obligations to customers and, in general, to consistently pass 2020, }}

History

2024: ER-Telecom bought 25% of Stroy Invest Project

ER-Telecom Holding bought 25% of the developer of smart transport systems Stroy Invest Project. This deal became known on January 10, 2024. Read more here.

2023: Increase of stake in Akado Holding to 75%

ER-Telecom Holding on January 26, 2023 announced that it had become the owner of 75% -1 share of Akado Holding. Read more here.

2022

Data Base of 4 million subscribers of the Internet provider "Дом.ру" are publicly available

In mid-November 2022 data breach , 4 million subscribers of the Internet provider "Дом.ру" were recorded in. St. Petersburg According to Telegram the channel "Leaks," information two text files posted in the public domain contain data from legal entities and individuals, namely:

• FULL NAME;
• Address;
• TIN, full name of the director, bank details (for Legal persons);
• Date of birth (not all);
• Phone (2.7 million unique numbers).

The researchers write that the hackers probably managed to take possession not of the client database of the telecom operator, but only of the database of incoming requests for connection to the network. At the same time, judging by the information from the published files, the information is relevant on November 9, 2021. According to the Data1eaks Telegram channel, the dump also contains comments about clients, parts of the access point installation addresses and other details.

Data1eaks and Information Leaks report that user data was published by "pro-Ukrainian hackers" who had previously "leaked" information about customers of the Delivery Club delivery service, the GeekBrains educational platform, Russian Post, and so on.

The "Дом.ру" did not confirm that the information in the database corresponds to the real data of their clients, but noted that an internal investigation is being carried out into the reports of the drain.

{{quote "In accordance with the current legislation, the results of the audit when confirming this fact will be sent to the ILV (Roskomnadzor - approx. TAdviser). The company is taking the necessary additional measures to protect the infrastructure, uninterrupted provision of services and protect its customers, - wrote a company representative in the official VKontakte group, answering a question about the drain from one of the community members.^[1] }}

Purchase of 51% shares of SharxDC

On August 9, 2022, ER-Telecom Holding announced to TAdviser the acquisition of a 51% stake in SharxDC LLC, an independent Russian software developer in the field of virtualization and hyperconvergence. Read more here.

Agreement with the K.A. Timiryazev Moscow Agricultural Academy on the development of technologies in crop production and animal husbandry

JSC ER-Telecom Holding and the State Agrarian University - K.A. Timiryazev Moscow Agricultural Academy signed a cooperation agreement aimed at developing innovative technologies in crop production and animal husbandry in Russia. This was announced by ER-Telecom Holding on April 11, 2022. Read more here

Agreement with Omsk GAU for the development of the agricultural sector

On March 17, 2022, ER-Telecom Holding (TM Дом.ру) and Omsk State Agrarian University named after P.A. Stolypin (Omsk GAU) signed a cooperation agreement. Read more here.

Investment of 13 billion rubles in the construction of infrastructure in the regions

In mid-January 2022, it became known that ER-Telecom would invest 13 billion rubles in the construction of infrastructure in the regions. The company decided to focus on developing communication in rural areas.

One of the main goals of our company is to provide access to the network in districts, not regional centers, "Vladimir Romaniv, vice president for development and mass market of the company, told TASS. - By building our infrastructure, we get relatively cheap communication channels that allow us to come to the most remote areas.

He also noted that until recently, the company focused on providing communication services in the regional center. However, due to the relatively free competitive environment in the districts, it was decided to develop new communication channels. As an example, Romaniv noted that connecting socially significant objects allows you to create a "last mile" for connecting residents of the private sector.

In January 2022, the President Russia Vladimir Putin instructed Government of the Russian Federation , together with the All-Russian Public Organization "" Russian Union of Industrialists and Entrepreneurs(RSPP), to take additional measures to quickly connect rural households to existing communication centers by 2024 in order to provide broadband access to the Internet to (). BROADBAND ACCESS

In December 2021, at a plenary meeting of the XXX Congress of the Russian Union of Industrialists and Entrepreneurs, Putin agreed with the proposal of ER-Telecom President Andrei Kuzyaev to accelerate the elimination of digital inequality in the country, reducing the time for connecting to broadband access for 97% of the population by five years - from 2030 to 2025.

By the beginning of 2022, the ER-Telecom backbone network covers two-thirds of Russia, serving more than 13 million households in 567 Russian cities.^[2]

Acquisition of a stake in Akado Holding

ER-Telecom and Rostec acquired 75% -1 shares of Akado Holding from shareholders. The 25% + 1 share package will continue to belong to AVK Investments. Akado Telecom announced this to TAdviser on January 11, 2022. Read more here.

2021

The requirement of the OFAS Murmansk to stop the installation of video telephones

UFASurman region demanded that Er-Telecom stop installing video phonographs. This became known on November 24, 2021.

In October 2021, the company began installing intercoms with video surveillance in Murmansk. After that, the antimonopoly service received complaints from residents of the city that without the consent of the homeowners, the old equipment purchased by them at their own expense was being dismantled.

After that, the supervisory authority began checking.

Murmansk OFAS Russia established that the actions of Er-Telecom Holding JSC were accompanied by the dissemination of misleading information about the commission of actions within the framework of the Safe Yard project (this project is absent in the Murmansk region) and in pursuance of the agreement No. F.2021.0003694 concluded with the Information Technology Center of the Murmansk Region for the provision of services for the transfer and processing of video monitoring data from controlled devices (the subject of the contract is the provision of telecommunication services, and not the installation of video doorphones in apartment buildings), - said in the official statement of the regional OFAS.

The Antimonopoly Service notified the company that it would stop work on installing video doorphones and dismantling equipment owned by homeowners. Otherwise, the enterprise faces administrative punishment for violating the antimonopoly legislation of^[3].

Completion of the acquisition of Lartech

On September 2, 2021, ER-Telecom Holding JSC announced TAdviser the completion of the acquisition of the group of companies Lartech"." According to the expectations of ER-Telecom, the merger of companies will allow the holding to strengthen its position on (IoT market Internet of Things -). IoT More. here

Acquisition of universal telecom operator "Avantel"

On August 10, 2021, ER-Telecom Holding announced to TAdviser that it had completed the acquisition of 100% of the combined Avantel group of companies. Read more here.

Purchase of three Internet providers in Moscow

On April 26, 2021, it became known about the purchase by ER-Telecom of three Internet providers in Moscow. We are talking about International Communications Company LLC (ISS), Dalnyaya Svyaz LLC and Telenet LLC. These companies are connected. Read more here.

Acquisition with RDIF and Talos Fund I LP of 100% of Linxdatacenter's business in Russia

The Russian Direct Investment Fund (RDIF, the sovereign wealth fund of the Russian Federation), together with ER-Telecom Holding (TM Дом.ru and Дом.ru Business) and the Middle East Talos Fund I LP, specializing in investments in promising technologies, including in the field of artificial intelligence, on April 19, 2021 announced joint investments in the creation of an autonomous cloud service in Russia based on the assets of Linxdatacenter. Read more here.

2021: Buying 50% of Linxdatacenter's business in Russia

ER-Telecom Holding buys half of Linxdatacenter's business in Russia, which became known in April 2021. Thanks to this deal, the telecom operator will enter the data center market, and Linxdatacenter will have opportunities for further development. Read more here.

• • >

2020

Baring Vostok withdrew from ER-Telecom capital

At the end of December 2020, Baring Vostok withdrew from the capital of ER-Telecom. The share of the Internet provider from the investment company was bought by its main owner and president Andrei Kuzyaev.

According to the press service of ER-Telecom, PFIG Overseas Invest Holding Limited, representing the interests of Andrei Kuzyaev, has increased its stake in ER-Telecom Holding Limited (the parent company of ER-Telecom Holding JSC).^[4]

The company acquired a 16.3% stake in ER-Telecom from Dehus Dolmen Nominees Limited (representing the interests of the Baring Vostok Investment Fund) and Enforta B.V.

As a result of the transaction, PFIG Overseas Invest Holding Limited's stake in ER-Telecom increased from 70.99% to 87.29%. The rest of the shares are still owned by the leadership of the telecom operator, representatives of the companies told Kommersant. The publication writes that 87.29 percent of the share is actually owned by the Perm Financial and Production Group (PFPG), owned by Kuzyaev.

According to Andrei Kuzyaev himself, the deal is in line with the company's strategy to create a "leading independent telecom operator in Russia." The amount of the transaction was not disclosed. The newspaper writes that Kuzyaev could pay 8-9 billion rubles.

By the end of December 2020, ER-Telecom is the second largest Internet provider in Russia after Rostelecom. Experts interviewed by the publication say that in recent years the Internet provider has grown mainly due to mergers and acquisitions, but for almost two years its subscriber base has remained practically unchanged.

As a result of the integration of subscriber bases of other providers, there was an outflow of some of their customers, which could not exceed the inflow

The consolidation of the provider in one hand may indicate a desire to attract a more specialized investor in the future, experts do not exclude. According to them, against the background of the fact that competition with other players is intensifying, for example, MTS, in the segment of wired Internet services, ER-Telecom will consider consolidation.^[5]

Buying electronic price tags from KRET

On December 25, 2020, KRET announced the start of deliveries of electronic graphic price tags (ESL) to large retail chains in the country. Among the buyers of these products are ER Telecom-Holding, DNS and Snezhnaya Koroleva. Read more here.

Completion of the collection of applications for the issue of bonds of the PBO-04 series in the amount of 7 billion rubles

On October 22, 2020, ER-Telecom Holding announced the completion of the collection of applications for the next issue of PBO-04 series bonds of 7 billion rubles for a period of 2 years at a coupon rate of 7.90% per annum.

The nominal value of the bonds is 1,000 rubles, the coupon period is 91 days. The issue is placed within the framework of the 4-53015-K-001R-02Ye exchange-traded bonds program dated May 31, 2016.

The collection of the book of applications for the purchase of bonds was carried out on October 20, 2020 from 11:00 to 15:00 after premarketing, which included a webinar for investors on the Moscow Exchange. The initial benchmark for the coupon rate was set at 7.90-8.15% per annum.

The significant interest of investors in this issue of the Company's bonds, observed immediately since the opening of the application book, not only increased the volume of placement from 3 to 7 billion rubles, but also twice revised the marketing range downward, and then closed the application book at the final coupon rate at 7.90% per annum.

The placement was attended by all the main categories of institutional investors (management companies, banks, investment companies), as well as retail investors. The total volume of demand for paper exceeded 11 billion rubles, of which individuals accounted for more than 1 billion rubles.

The technical placement of bonds is scheduled for October 23, 2020.

The transaction was organized by VTB Capital and Otkritie Bank. The co-organizer of the transaction is IFK Solid.

Start of connection of the private sector in the Moscow region to high-speed Internet

ER-Telecom Holding (TM Дом.ru and Дом.ru Business) on August 24, 2020 announced the start of connecting the private sector in the Moscow region to a high-speed Internet network.

The operator continues to grow and develop in Moscow and the Moscow region. The goal is to bring revenue in the region to 10 billion rubles and reach more than 10,000 households in the private sector by the end of the year. Within five years, ER-Telecom plans to take a significant market share in the Moscow region.

As of August 24, the network is connected to 33 settlements, including Dmitrovsky, Solnechnogorsky, Ruzsky districts of the Moscow region, as well as Filimonkovsky settlement. Services will be provided on the WNGN (Wireless Next Generation Networks) network, which is built on a technology that allows you to increase the capacity of the radio network by 7 times and thereby provide high-quality communication to a large number of customers.

The company offers 4 tariff plans:

• "Affordable House S" - a monopack with an Internet access speed of 15 Mb/s. The cost is 650 rubles per month.
• "Affordable Home M." Speed ​ ​ 30 MB/s. The price is 850 rubles per month.
• Two package tariffs, including Internet and digital television (130 TV channels). The cost of packages is from 900 rubles per month.

The connection period is up to 3 days. The cost is from 8,000 to 10,000 rubles.

The Zagorodny Internet project was launched at the company in 2019, and as of August 2020, the network covered about half a million households throughout the territory of ER-Telecom Holding's presence. In the next four years, it is planned to bring this figure to 4 million. 1 billion rubles have already been invested in the project, and over the next five years the operator plans to spend about 5 billion more on its development. The company connects the private sector using three technologies: GPON, FTTB and WNGN.

Creation of 14 interregional branches instead of 38 by cities

JSC Ayr-Telecom Holding completed process of integration of administrative structure. This 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 "R-Telecom" Andrei Kuzyaev.

{{quote 'The company's transformation process started in 2019. It's an evolutionary process. It is aimed at simplifying the management system and increasing the speed of making key decisions in the company, - commented on the changes in the structure of the representative of the ER-Telecom press service. }}

According to him, 90% of local leaders who did not head interregional branches remained in the holding. The rest were asked to leave the company. Georgy Kharchenko, director of the ER-Telecom Holding branch in St. Petersburg, was also fired. This was confirmed by three sources in the company. The press service of ER-Telecom could not answer which positions the ex-heads of the company's regional offices moved to.

According to two sources, the branch in St. Petersburg became part of the created interregional branch "North-West." It has been headed since July 2019 by Alexander Motrich. Since September 2019, the interregional branch "Moscow and MO" has been headed by Vitaly Klishin, the MRF "South" is headed by Nikolai Gorbanov. In the MRF "Chernozemye" Andrei Roldugin was appointed head (previously he was the director of the branch in Voronezh). The Golden Ring branch (the cities of Sergiev Posad, Pereslavl-Zalessky, Rostov the Great, Yaroslavl, Kostroma, Ivanovo, Suzdal, Vladimir) was headed by Vasily Sereda, the ex-director of the Yaroslavl branch.

MRF "Middle Volga Region" is headed by Anton Katkov. "Lower Volga region" 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" - Ilina Kan.

In the MRF "Western Siberia" (Omsk, Tyumen, Kurgan), the work of employees will be coordinated by Stanislav Darienko - he previously served as director of the Vostok branch, he united all of Siberia. In the MRF "Siberia" (Novosibirsk and Kemerovo regions, Altai Territory, the republics of Altai and Khakassia), Alexei Linkov was appointed to lead, in the MRF "Eastern Siberia" (Irkutsk region, Buryatia and Krasnoyarsk Territory) - Gleb Stupin (previously headed the branch in Irkutsk). The vacancy for the post of head of the Far East MRF is still open.

The source reminded that Andrei Semerikov was appointed to the position of the chairman of the board of directors of "R-Telecom". He sme­nil Yele­nu Iva­shen­tse­vu ko­toraya will continue to ra­botu in the council of di­rek­to­rov kom­pa­nii. Earlier Semerikov held a position of the vice-chairman^[6].

Purchase of the Altai Internet provider "Dianet"

At the end of June 2020, it became known about the sale of Dianet to ER-Telecom Holding. The value of the transaction was not disclosed. Read more here.

Appointment of Andrey Semerikov as Chairman of the Board of Directors

29 2020, ER-Telecom Holding JSC (TM Дом.ru and Дом.ru Business) informed TAdviser about the appointment of Andrei Semerikov to the post of Chairman of the Board of Directors of the company. Read more here.

Agreement with Yandex.Cloud to help Russian developers of IoT solutions

On June 15, 2020, it became known that Yandex.Cloud will make the development of solutions based on the Internet of Things (IoT) easier and faster. To do this, the company entered into an agreement with partners to provide developer companies with discounts on ordering parts, assistance in assembling and testing equipment, connecting to communication channels for data transmission . Development companies will receive an indefinite connection of up to 10 devices per base station to the developer portal LoRaWAN of the ER-Telecom network. Read more here.

Joining Arrow Telecom

On April 3, 2020, ER-Telecom informed TAdviser that it included the Strela Telecom provider. From April 2020, companies begin work in Ulan-Ude under a single brand "Дом.ru Strela." Read more here.

Inclusion in the list of backbone organizations

In March 2020, the Government Commission for Improving the Sustainability of the Russian Economy included ER-Telecom in the list of backbone organizations. Read more here.

Joining "5 G Waifai" to the general structure

On January 17, 2020, ER-Telecom Holding (TM Дом.ru and Дом.ru Business) announced the merger of a subsidiary of 5 G Waifai LLC into the general structure of the enterprise. Read more here.

2019

Net profit growth by 26% to RUB 2,644 million.

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

OIBDA increased by 33% compared to 2018 to RUB 17,078 million. OIBDA margin was 38%.

Net profit amounted to RUB 2,644 million, an increase of 26% compared to the same period in 2018. CAPEX2 increased by 32% compared to the same period in 2018 to 10,351 million rubles. Net debt as of December 31, 2019 amounted to 44,443 million rubles.

B2B revenue increased by 20% compared to the previous period and amounted to 16,126 million rubles. In turn, B2C's revenue grew by 9% to 28,747 million rubles.

The Company develops in full compliance with the approved strategy. In 2019, revenue in the V2S and V2V segments grew at a faster pace. Demand for our digital products has steadily increased. The main growth driver is the V2V segment. The company participates in the state program to eliminate digital inequality. We connect socially significant objects of the country to the Internet, fully fulfilling our obligations, noted by Andrey Kuzyaev, President of ER-Telecom Holding JSC

Connection of 610 thousand apartments

On March 4, 2020, Дом.ru reported that in 2019 it connected 610 thousand apartments to its network. Residents of 35 regions of Russia have the technical ability to connect high-speed Internet, digital TV and home phone. In 2020, the project will continue. The operator plans to increase the installed capacity by 500 thousand households. The largest projects will be implemented in St. Petersburg (80,000 apartments), Perm (39,500), Kazan (30,000), Rostov-on-Don and Izhevsk (in both 22,000 apartments).

As of March 2020, the network, with a total length of 52 thousand km, covers more than 15 million apartments. In some cities, it already covers up to 80% of the housing stock, so in 2020 the operator will focus on providing services in new buildings and the private sector. For the first time, the share of network construction in cottage villages will amount to 40% of the project volumes. By the end of 2020, the penetration of networks into the infrastructure of the housing stock in the cities of presence will reach 85%.

In addition, Дом.ru will build networks for the first time in Tambov, Ulan-Ude, Votkinsk (Udmurtia) and Tchaikovsky (Perm Territory). In open markets, the operator will provide modern digital TV, Internet with a bandwidth of 1 Gbps and the entire range of services based on it - a "smart home" for 60 thousand households.

In two years, we reached cruising speed - we increase the mounted capacity by an average of 500-700 thousand apartments per year. This is an important part of the company's organic growth strategy. Our customers can already access the Internet at speeds up to 1 Gbps and watch up to 226 digital television channels. In apartment buildings, along with the main services, Дом.ru is ready to install a smart home system - video telephones, home video surveillance and remote access control system (gas, water, smoke, movement, opening windows and doors) - which can be controlled from a mobile application, being anywhere in the world. You just need Internet access, notes Igor Levchenko, Director for Construction Management of the Network of ER-Telecom Holding JSC (TM Дом.ru, Дом.ru Business)

Launch of educational resource цифроваяграмотность.рф

On December 26, 2019, it became known that the University of 2035 and Russian companies launched an educational resource цифроваяграмотность.рф so that residents of Russia could learn for free the safe and effective use of digital technologies and services.

According to the company, Megafon, Rostelecom, Russian Railways, Er-Telecom, Sibur IT, Rostec Academy, HSE, Rocit and Russian Post, NAFI analytical center will be engaged in the development of IT solutions, the provision of online content, as well as expertise of its quality. The project operator is the University of 2035. Read more here.

Acquisition of 100% shares of Binom-TV JSC

On December 25, 2019, ER-Telecom Holding JSC (TM Дом.ru Telemir) informed TAdviser about the completion of the transaction on the acquisition from the Lipetsk municipality of a 100% stake in Binom-TV JSC, the leading operator of the region serving intercoms and collective television reception systems. Read more here.

Investments in the modernization of the network 7.6 billion rubles

In December 2019, ER-Telecom Holding JSC (TM Дом.ru, Дом.ru Business) announced the launch of a federal project to modernize the broadband access optical network.

The project is designed for 7 years, investments will amount to 7.6 billion rubles. The company will provide reliable access to modern digital services to 11 million families and will increase network reliability to 99.99%, the level of European communication standards. This is the most significant modernization of the network since its construction began and a major investment in the digital infrastructure of Russian regions.

In 2020-2022, thanks to modernization at a speed of 1 Gbps, 60% of the ER-Telecom network will operate. The company will modernize the largest number of households in St. Petersburg - here 2 million apartments will receive gigabit Internet. In Yekaterinburg, Samara, Nizhny Novgorod, gigabit Internet will appear in 500,000, and in Volgograd, Irkutsk, Saratov and Chelyabinsk - 400,000 addresses.

ER-Telecom was the first in Russia back in the 2000s to build fiber-optic networks using optics to home technology. Gradually, this became the standard for the telecom industry.

The constant growth of the number of devices with Internet access (tablets, smartphones, Smart TV), the consumption of "heavy" content in FHD/4K formats, the development of VR technologies, the Internet of Things, online services, esports disciplines required modernization and expansion of the bandwidth of communication channels. The "stock," which will appear as a result of modernization, will last for 7-10 years. Despite this, ER-Telecom is already laying the foundation for the subsequent modernization of the network to 10 Gbps.

The company will increase the number of fibers in the transport and backbone networks, replace outdated switches, and eliminate copper "perekids" between houses with gigabit, and replace copper cables with optical cables in 70% of entrances.

ER-Telecom Holding will also reserve the network, which will improve the uninterrupted provision of services. The modernization will also affect the networks of acquired assets.

Revenue growth in the first half of the year by 11% to 21,438 million rubles

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

Consolidated revenue increased by 11% compared to the same period last period and reached 21,438 million rubles. OIBDA increased by 35% compared to the previous period to RUB 8,486 million. OIBDA's margin was 40%. Net profit amounted to 1,400 million rubles, an increase of 37% compared to the same period last year.

CAPEX increased by 37% year-on-year to RUB 3,910 million. Net debt as of June 30, 2019 amounted to 40,856 million rubles. B2B revenue increased by 15% compared to the previous period and amounted to 7,378 million rubles. B2C revenue grew by 9% to RUB 14,060 million.

Memorandum with SAP on the creation of a competence center for the exchange of experience

JSC ER-Telecom Holding and SAP CIS signed a memorandum of technological partnership on June 7, 2019. The companies plan to create a joint competence center to study SAP technologies and their further application in the telecommunications industry.

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

ER-Telecom spent 15-16 billion rubles on mergers and acquisitions in 4 years

On May 31, 2019, it became known that ER-Telecom (the Дом.ru brand) had invested 15-17 billion rubles in mergers and acquisitions (M&A) over four years, out of a planned 30-33 billion rubles. This was told in an interview with Kommersant by the president of the company Andrei Kuzyaev. At the same time, in 2018, the company's investment in this area amounted to only 6 billion rubles out of the planned 17 billion rubles.

I'm not talking about future deals, but they will be, it's part of our operations. The fact is that when we talk about transformation, digitalization of the telecom industry, we must understand that one of the drivers of the process is consolidation. Small companies are not able to become growth drivers, - said Kuzyaev.

According to him, the company plans to additionally build a network for 5-6 million households. The source of growth in the b2c sector will also be the direction of intercom, due to which ER-Telecom expects to receive another 5% of growth.

Andrei Kuzyaev also announced the progress of the implementation of the requirements of the "Spring Law." According to him, initial estimates of costs in the company - 36 billion rubles over five years - are decreasing.^[7]

In principle, in our company, we spend about 1 billion rubles a year on issues related to state security and laws on Internet security. This amount has a propensity for growth, but at the same time there is a clear line from the regulatory authorities: when they see that there is a program of action, they accept it, and we are working normally on implementation. But it is clear that 1 billion rubles is a lot of money for us, this is almost 10-15% of investments in organic growth, - said the president of ER-Telecom.

Campus, House and In-House Distribution Network Upgrade Program

"Дом.ru" will improve the quality of services in more than 25,000 houses

In 2019, as part of ongoing repairs, the operator plans to improve the quality of services in more than 25,000 homes across the cities of presence. The most ambitious work is 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 work on campus and house nodes, as well as on internal distribution networks. By the end of the year, the company's technical specialists will install uninterruptible power supplies on 11 thousand nodes, replace battery batteries, and outdated optical receivers on seven thousand.

The targeted network modernization program is formed on the basis of data from the accident monitoring system and the proactive service system (SPAS), which the operator launched at the beginning of last year to identify problems on the network before the client contacts.

The network quality improvement project was launched in 2018, and by the end of December, work was carried out in 15,000 houses in all cities of the company's presence. According to the results of 2018, investments in the project amounted to about 100 million rubles.

The court ordered Er-Telecom to transfer 49.2 million rubles of taxes to the budget

On March 7, 2019, it became known that the Seventeenth Arbitration Court of Appeal recognized Er-Telecom Holding (Дом.ru trademark) as a violator of tax legislation and ordered the company to pay 49.2 million rubles to the budget. In this amount, MIFNS for the largest taxpayers of the Perm Territory included the debt of the telecommunications holding on value added tax, as well as penalties and fines.

According to the court's materials, in the fall of 2017, MIFNS conducted an on-site tax audit of Er-Telecom's activities from 2013 to 2015.

Tax inspectors found that Er-Telecom had no "real economic relationship" with Infok, Online Technologies, Aichi Technologies and Galaxi Media.

Representatives of the telecom provider insisted that contracts with these legal entities were concluded to provide Er-Telecom subscribers with access to content at a higher speed. To which the tax authorities replied that the taxpayer concluded an agreement on the placement of additional equipment used to increase the speed of content downloaded by subscribers with FinInvestProekt, which "has nothing to do with controversial counterparties."

The counterparties also did not have exclusive rights to the Internet resources "Shareman" and "Futuron," since they are freely available, the case file says.

Er-Telecom Holding, "having the necessary resources, fixed assets, qualified personnel, had the opportunity to independently perform the work necessary to increase the speed of content downloaded by subscribers.

The second episode of Er-Telecom's receipt of unreasonable tax benefits was associated with the acquisition by the provider of advertising and souvenir and printing products from InterCom and Sintez. The tax authorities were able to prove that these counterparties did not carry out real business activities and the actual executor of the work was the Cyrillic Printing House, which uses a simplified taxation system and does not pay VAT.

The Arbitration Court of the Perm Territory declared the decision of the tax authority invalid, but the Court of Appeal upheld the position of the tax authority and overturned the decision of the lower court.

The contracts, additional agreements and acts submitted in the case materials do not contain any links and indications of the speed of downloading content by customers. If the meaning of the contracts was the possibility of using a high-speed connection, this fact had to be directly recorded in the contract, indicating specific parameters (primarily the required connection speed).

The evidence presented by the MIFNS and taken into account by the court when making a decision on the second episode is not indisputable. During interrogations, Er-Telecom employees explained that they had found counterparties for the manufacture of advertising and souvenir and printing products on the Internet, however, when the tax authorities analyzed the settlement accounts of InterCom and Sintez, there were no advertising payments to promote the services of these counterparties.

Despite the fact that this seems to be a good argument of the tax authority, it is controversial. For information to be present in open information resources, sometimes only the presence of any feedback about the economic entity is enough.

According to Ekaterina Boldinova, partner of the law firm Five Stones Consulting, the tax inspectorate managed to "turn" the tide of the case in the court of appeal and "paint the taxpayer's economic activities entirely with black paint."

The circumstances of the episode on the additional charge of VAT on relations with "one-day firms" resemble the circumstances of most such disputes, where the taxpayer could not prove the manifestation of due diligence and the reality of relations with controversial counterparties. At the same time, the set of claims against the taxpayer's counterparties is quite standard: the documents were signed by unidentified persons, the directors, during interrogations, disowned from participating in the activities of the disputed companies. I am afraid that in cassation, the taxpayer will have to make very powerful efforts to achieve at least referral of the case for additional consideration.

2018

Revenue growth of 18%

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

Thus, the consolidated revenue of the holding for 12 months of 2018 increased by 18% compared to the same period to 39,739 million rubles. The increase was provided by 8% organic growth and 10% by M&A transactions, the company said. In turn, EBITDA increased by 30% compared to the previous period to 12,733 million rubles. EBITDA margin amounted to 32%, which is the result of measures taken to achieve economically balanced growth. Net profit amounted to 2 110 million rubles. CAPEX increased by 11% compared to the same period last year to 7,693 million rubles. The net debt of the holding as of December 31, 2018 amounted to 39,976 million rubles.

B2B's revenue increased by 21% compared to the previous period to 13,413 million rubles. B2C revenue grew by 16% to 26,326 million rubles. The number of active B2C subscribers increased by 10.4% in 2018. At the end of 2018, the subscriber base of the V2S amounted to 7,002 thousand subscribers.

In 2019, ER-Telecom Holding predicts revenue growth of 14% and EBITDA growth rate of 23%.

I am satisfied with the company's performance in 2018. We executed our five-year strategy to double the scale of the business a year earlier. EBITDA in 2018 grew at a faster pace in relation to revenue, - commented on the results of 2018 Andrei Kuzyaev, President of ER-Telecom Holding.

For 12 months of 2018, ER-Telecom Holding JSC was reorganized by joining LLC West Call SPb"" (d.) St. Petersburg , LLC "Kredolink" (St. Petersburg), LLC "Infocenter" (Sosnovy Bor,), Leningrad Oblast Enlink Telecommunications LLC (g.), Ryazan InTel LLC (Ryazan), Saturn- LLC (g.), Internet Tele-Invest LLC Perm (Perm), Перм.ру LLC (Berezniki,), JSC "" (g.) Perm Territory , JSC (St. Akado-Yekaterinburg Yekaterinburg TKS "Neva" Petersburg), LLC "Columbus Telecom" (g.), LLC "Company" (Volgograd g.), LLC " Teleworld Lipetsk Michurinsk-Svyaz-TV" (g.), AVIKOM LLC (g.), Michurinsk Irkutsk City Internet Networks LLC (g.), TOMTEL LLC (Tomsk Tomsk), Tomtelecom LLC (Tomsk), TeleNet LLC (Usolye-Sibirskoye), Radio-Resource LLC (Ryazan), Bryansk Cable Networks LLC (d.), Stom & K LLC (Bryansk Bryansk), Bryansk Svyaz Telecom LLC (Bryansk), Bryansk Svyaz-TV LLC (Bryansk), Kamsan-Service LLC (g.). Krasnoyarsk

As a result of reorganizations, JSC ER-Telecom Holding became the legal successor of all rights and obligations of the merged companies. In addition, in July 2018, the operator also completed the reorganization in the form of joining its subsidiary Novotelecom LLC Novosibirsk , a branch allocated from ER-Telecom.

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

The volume of Internet traffic on the Дом.ru network for the year increased by 21% compared to 2017 and reached more than 2.9 million TB, which is comparable to watching 725 million films in Full HD quality. Every second 2.6 Tbit of traffic passes through the company's network (in 2017 - 2.2 Tbit). The growth is due to an increase in the number of Дом.ru customers, the number of devices with Internet access (tablets, smartphones, Smart TV), the consumption of "heavy" content in FHD/4K formats, an increase in speed at tariffs and the development of online services, esports disciplines.

In June 2019, the shareholder of ER-Telecom Holding JSC decided to leave the company's net profit of 1.6 billion rubles unallocated. No remuneration will be paid to members of the Board of Directors and the Audit Commission.

Traffic in the Дом.ru network for the year increased by 21%

In 2018, the volume of Internet traffic in the Дом.ru network (part of the ER-Telecom holding) reached 2.9 million TB, which is 21% more than a year earlier. Every second 2.6 Tbit of traffic passes through the operator's network (in 2017 - 2.2 Tbit).

The largest share in the total traffic volume - 42% - is occupied by video (video hosting,) online movie theaters , the Дом.ru said in a statement. In second place - 21% of traffic - social networks, in third (15%) - gaming resources. The largest growth - by 5% - was recorded in the segment of gaming and near-game resources: Twitch, Steam, Wargaming etc. So, for example, traffic on these resources during The International 2018 Dota 2 tournament exceeded the traffic of the social network. "Vkontakte

Most traffic was consumed by Internet users "Дом.ru" in, St. Petersburg,, and Nizhny Novgorod Irkutsk- To Samara Perm they account for about 35% of the total.

The company notes that the volume of traffic is growing due to an increase in Дом.ru subscribers, the number of devices with Internet access (tablets, smartphones, smart TV), the consumption of "heavy" content in FHD/4K formats, an increase in speed at tariffs and the development of online services, esports disciplines.

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

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

Based on the great potential for the development and implementation of digital products and services in the b2b market, the company relies on expanding the product line for corporate clients, including the development of smart, video surveillances(cloudy telephony OATS), Wi-Fi as well as services based on (). IoT internet of things The basis of the proposed telecom infrastructure is stable from Internet Дом.ru Business.

In the regional market of Moscow and the Moscow region, the operator launched package solutions based on high-speed channels in combination with VAS services for a variety of business sectors. Now customers of medium and small businesses have the opportunity to connect combined telecom services on favorable terms.

On the moscow.b2b.domru.ru website, customers can independently choose a set of necessary cloud solutions for business development or choose one of the proposed packages depending on the scope of the company.

The launch of the Дом.ru Business brand is the beginning of the next stage of relations with customers in the Moscow market. The growth strategy and our experience with federal clients will create a telecom environment for representatives of small and medium-sized businesses. High expertise of business processes, high-quality service and cloud technologies are the key to creating convenient innovative solutions.

Organizational Model Transformation

ER-Telecom Holding, a national operator of information and communication services, on October 11, 2018 announced changes in the organizational structure of the company aimed at implementing the holding's strategy, ensuring positive customer experience and focus on the development of new digital products.

In particular, the company has created an operational division responsible for sales, connection and service, as well as coordination of the activities of the holding's branches. A marketing and product management unit has also been formed.

Alexander Motrich has been appointed to the position of Director of Operations. Andrey Chazov V2S for the position of Marketing and Product Director.

The transformation of the organizational model is designed to improve management efficiency, simplify internal corporate interaction and create conditions for the further dynamic development of the company. We strive for flexible adaptation to the needs of customers and a quick response to the digital challenges of the market, - commented on the changes by the President of ER-Telecom Holding Andrei Kuzyaev.

Transition to a single brand "Дом.ru Business" in 566 cities and settlements

ER-Telecom Holding (TM Дом.ru Business) and, "Enforta" the national operator of information and communication services, on July 18, 2018 announced the start of providing services to corporate clients under the single Дом.ru Business brand in all 566 settlements and cities of presence, including in,, etc To Moscow Kaliningrad Vladivostok. Previously, in these cities, the company provided communication services under the Enforta brand.

ER-Telecom is actively developing the b2b direction. Based on the great potential for the development, implementation of digital and innovative products and services in the b2b market, the company relies on expanding the product line for corporate clients, including the development of smart, video surveillances(cloudy telephony OATS), Wi-Fi as well as various services based on. internet of things

The operator provides communication services based on advanced technologies: FTTB optical network, WiMAX wireless broadband access, E-Band radio bridge, WNGN. The Дом.ru Business infrastructure allows you to implement projects for a variety of industries and business areas. Customers get access to a wide range of services and products of the holding, regardless of the territorial location of the business.

Complete Merge with Telemir

ER-Telecom Holding, a national operator of information and communication services, on April 9, 2018 announced the completion of the acquisition of 100% of Telemir LLC. The value of the transaction was not disclosed. Read more here.

Completion of integration with Enforta

The Russian telecommunications holding ER-Telecom (a trademark in the corporate services market Дом.ru Business) and telecom operator Enforta completed the integration process in March 2018. Since 2018, in the cities of Дом.ru Business's presence in the b2b market in the segment of medium and small businesses, services to corporate clients have been provided under a single Дом.ru Business brand.

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

The perception of the Дом.ru Business brand as a universal operator providing a wide range of telecommunications services is being formed. The updated "Дом.ru Business" is a qualitatively new provider of federal significance, capable of supporting any wired and wireless Internet access technologies regardless of the location of the client's business. The resources of the combined company allow us to set ambitious goals, while ensuring the high quality and reliability of the services provided, the high quality of service to corporate clients, - commented on the event Elena Ventslavovich, Director of B2B ER-Telecom Holding (Дом.ru Business brand).

Contracts concluded earlier with Prestige-Internet LLC (Enforta trademark) continue to operate, exercise rights and perform duties under them by ER-Telecom Holding. In turn, the Enforta brand continues to be used to connect and serve federal and network customers.

Дом.ru Business provides communication services based on such technologies as: FTTB optical network, WiMAX wireless broadband access, E-Band radio bridge. The Дом.ru Business infrastructure allows you to implement projects for a variety of industries and business areas. The operator offers not just communication services (Internet, telephony, corporate networks), but individual complex solutions with many options for business - high-speed Internet access with content filtering and subscription antiviruses, protected from DDoS attacks by VPN networks, cloud telephony and video surveillance with analytics services, Wi-Fi with additional marketing tools. The complex of telecom services, supplemented by light-scale cloud services, allows you to build the infrastructure of the organization as a whole, automate and optimize business processes, reduce costs and increase sales.

Purchase of the Lipetsk operator "Telemir"

Telecommunications holding ER-Telecom on February 13, 2018 announced the acquisition of the Lipetsk operator Telemir. In the spring, the companies intend to start working under a single brand "Дом.ru Telemir." Read more here.

2017

Revenue growth of 19%

On April 3, 2018, ER-Telecom Holding announced its consolidated financial results for 12 months of 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 increase was provided by 8% organic growth and 11% by M&A transactions, the company explained. EBITDA grew by 18% over the year to RUB 9,639 million, while EBITDA margin was 29%, remaining at the level of 2016.

Net profit of ER-Telecom Holding in 2017 amounted to 1,107 million rubles. CAPEX decreased by 4% compared to the same period last year to 6,947 million rubles.

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

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

The number of active B2C subscribers increased by 11% in 2017. At the end of 2017, the subscriber base of the V2S was 6,344,2 thousand subscribers.

In the B2B segment, revenue increased by 25% to RUB 11,046 million. In the revenue structure, the share of B2B increased by 1 percentage point - from 31% to 32%. According to the holding, throughout the year, B2B's revenue shows an outstripping growth rate due to the integration of previously acquired operators. With the addition of assets, there was also an expansion of the holding's product portfolio with the possibility of providing the company in all cities of presence. Based on the great potential for the development and implementation of digital and innovative products and services in the B2B market, the company relies on expanding the product line for corporate clients, including the development of smart, video surveillances, cloud PBX Wi-Fi PRO as well as various services based on. IoT

At the end of 2017, a total of 72 million connections were registered in the network of the public Wi-Fi telecom operator "Дом.ru." Over the year, 16 million unique users consumed almost 6.5 thousand terabytes of traffic (or 1.4 million films 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 the Dom.ru Wi-Fi network. Systemically increasing Wi-Fi coverage, "Дом.ru" in 2017 organized wireless access to the network in 2.2 thousand new points.

In 2018, ER-Telecom Holding expects revenue growth of 18% and EBITDA growth rate of 23%.

In 2017, ER-Telecom showed steady and stable growth, consistent with previously announced plans and an approved growth strategy. The company managed to strengthen its position due to the high-quality work of personnel, the launch of new offers, digital products and services, as well as M&A deals. The organic growth of the company is associated with the completion of the mounted capacity in the cities of our presence, ahead of the growth rate of the B2B segment due to the development of new VAS services, digital products and services, including Wi-Fi and IoT projects, - commented on the results of the year Andrei Kuzyaev, President of ER-Telecom Holding. - One of the most significant events of the year was the completion of transactions on the acquisition of large federal and regional operators Novotelecom LLC, TKS-Neva JSC and Akado-Yekaterinburg JSC, Columbus Telecom LLC. These purchases influenced the growth of the company's subscriber base and the expansion of the network.

According to Andrei Kuzyaev, 2017 has become a significant year for the holding. In September 2017, the company decided to enter related markets and launch an Internet of Things network with federal coverage in 60 cities in conjunction with technology partner Actility during 2018-2019.

We are satisfied with the results of the holding's activities for 12 months of 2017, we plan to continue implementing the previously approved development strategy of the company and create a strong digital brand on the telecom market through the development and implementation of innovative services and software solutions that create additional value for customers, "added the President of ER-Telecom Holding.

Purchase of 100% in TKS Neva

In October 2017, ER-Telecom Holding JSC and AKADO Group of Companies (part of Renova Group of Companies) announced the completion of the acquisition by ER-Telecom of 100% of TKS Neva CJSC, part of AKADO Group of Companies. The asset will strengthen the position of ER-Telecom Holding in St. Petersburg, the company hopes. AKADO Telecom intends to focus on business development in the Moscow region.

TKS Neva serves more than 70 thousand private clients and over 500 legal entities. The operator's telecommunications infrastructure is mainly concentrated in areas not captured by ER-Telecom, which makes it possible to provide maximum coverage of the city with the services of the holding. The merger of companies will allow ER-Telecom Holding to become a leader in the cable TV market in St. Petersburg and strengthen its position in the broadband access market. ER-Telecom's market share in the pay-TV market will grow by more than 30%.

FAS approved the petition of ER-Telecom for the purchase of 100% of the Khabarovsk House Networks Management Company

On July 31, 2017, it became known that the Federal Antimonopoly Service (FAS) granted the petition of ER-Telecom Holding (ER-Telecom) to acquire 100% of Khabarovsk House Networks Management Company. The value of the transaction was not disclosed.^[8]

As noted, in July, ER-Telecom filed a petition for the acquisition of seven companies included in the Strela Telecom group, the ultimate owner of whose assets is the Cypriot Elbrus Capital Investments Ltd. In addition to Khabarovsk House Networks, this number also includes six other companies operating in the Irkutsk and Tomsk regions.

Elbrus Capital Investments Ltd., through 100 %-owned Elbrus Capital Fund I, registered in the Cayman Islands, owns 100% of Cyprus-based Onema Investments Ltd., Rozens Trading Ltd., as well as STRL Telecom Holdings Ltd. In turn, Rozens Trading Ltd., according to the Unified State Register of Legal Entities (USRUL), is the owner of 100% of Khabarovsk House Networks LLC.

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

Earlier in July, the FAS Taezh approved the petition of ER-Telecom for the purchase of 100% of the Volgograd telecom operator Columbus Telecom.

In addition, in March 2017, ER-Telecom announced a deal to acquire 100% of Novotelecom LLC, a provider of Novosibirsk. According to representatives of ER-Telecom, as a result of this transaction, the share of the combined company in the B2C segment will be more than 40% in the broadband access and pay TV market. The share of the broadband access market in the B2B segment will increase to 19%. In general, the scale of ER-Telecom's business in Novosibirsk will almost quadruple.

Partnership between Дом.ru Business and Taxcom

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

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

ER-Telecom will increase investments to 15 billion rubles in 2017, a quarter more than a year earlier. Of these, the holding is ready to send up to 8 billion M&A (mergers and acquisitions) to transactions, Vedomosti writes with reference to the president of the company, Andrei Kuzyaev.

According to him, in general, the holding is interested in operators in cities where ER-Telecom is present and where these operators use similar technological solutions. At the same time, the goal is not to increase market share, but to increase business efficiency.

VTB will increase the credit limit for ER-Telecom

VTB ER-Telecom signed the preliminary conditions of the credit line, which provide for an increase in the credit limit to 45 billion, and the rubles availability period to seven years, reports. ACTR

The agreement will allow the operator to refinance current debt, invest in strategic development, and maintain liquidity. According to the plans of ER-Telecom, within five years the scale of the company's business will double due to organic growth and M&A-activity.

75% of ER-Telecom is pledged by VTB Bank

75% of the authorized capital of ER-Telecom plus 1 share is pledged by VTB Bank. In addition, the bank holds 55% of the authorized capital of the operator's sole shareholder, Cyprus-based ER-Telecom Holding Ltd, Vedomosti writes ^[9] of ^[10].

The pledge is a condition of the ER-Telecom loan agreement with VTB, limiting the growth of debt - the debt limit is 27 billion rubles. Among the terms of the agreement is also compliance by the operator's structures with certain financial indicators. According to the publication, in 2015-2016 these indicators were met.

2016

Among the special events in 2016 is the joint launch with MegaFon of a project in 30 cities. The companies combined their services - Internet, digital TV, mobile communications - as part of a converged offer and provided a discount on subscription fees of up to 20%.

In 2016, the company included federal and regional telecom operators, including the B2B operator Enforta, West Call SPB with assets in St. Petersburg, Leningrad Region and Ryazan, Business Network - Irkutsk and Siberian Telephone Company, providing communication services in Irkutsk. In March 2017, ER-Telecom Holding also acquired 100% of Novotelecom. The combined company occupies a leading position in the Novosibirsk broadband access and pay television market.

Revenue growth of 27%

In 2016, consolidated revenue grew by 27% to 28.2 billion, rubles the figure - EBITDA by 9% to 8.2 billion rubles. Profitability EBITDA was 29%. Net profit is estimated at 249 million rubles, net debt - at 24.9 billion.

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

"At the end of 2016, ER-Telecom became the fastest growing telecom operator in. Russia The holding's revenue increased by 27% compared to 2015, which corresponds to the company's planned indicators, - said the president of the holding. Andrey Kuzyaev- The main driver of revenue growth was the B2B direction. Due to organic growth, the expansion of the product line, as well as the acquisition of Prestige LLC, Internet B2B's revenue increased 2.3 times compared to the previous period. In the B2C segment, despite the highly competitive environment, we increased revenue by 6%. We achieved growth, including due to the launch of unique solutions for the Russian telecom industry, for example, the personalized tariff "Designer."

Дом.ru Business advances in HoReCa sector

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

The most popular service among representatives of the hotel and restaurant business is broadband Internet access - 51% of attracted customers. The operator provides broadband access based on its own operator network with a fault tolerance level of 99.98% and monitoring in 24/7 mode. For connection, FTTB technology is used - "optics to the building."

The Wi-Fi Hot Spot service was connected to 19 cafes and hotels during July 2016. Wi-Fi Hot Spot, as the company said, is one of the most popular services in Дом.ru Business for the HoReCa segment. Operator-level access points provide access to the Internet for 100-150 devices simultaneously without loss of quality. At the same time, the coverage area of ​ ​ the Wi-Fi point can be from 100 to 500 square meters.

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

The HoReCa segment is one of the fastest growing in our country. And for him, no matter what, a satisfied client is important. That is why hotels, cafes and restaurants strive to connect a package of telecom services that allows guests to stay as comfortable as possible - as a rule, these are Wi-Fi, licensed digital television, IP telephony Elena Ventslavovich, Deputy General Director - Director for b2b ER-Telecom Holding

Negotiations with Megafon on the purchase of ER-Telecom

PJSC Megafon is discussing with the owners of ER-Telecom Holding the purchase of a provider, the Vedomosti newspaper reported, citing sources close to the management^[11] companies^[12]

Discussion of a possible deal is at an early stage, said the newspaper's interlocutor, close to the co-owners of ER-Telecom. The company is looking for sources of financing, including because many transactions in the regions did not justify themselves, another source claims.

Megafon is carefully studying all the proposals that come with M&A transactions. Before making a decision on the purchase, we conduct a detailed analysis of the subject of the transaction, and if the asset is of interest to Megafon, a positive decision is made, "company representative Yulia Dorokhina told Interfax without commenting on the information about the purchase of ER-Telecom.

" Дом.ru" launched the procurement portal

Telecom operator Дом.ru announced in the summer of 2016 the launch of a portal where it will be possible to purchase goods, works and services for its own needs in electronic format. Registration on the site and participation in procurement procedures are free for all participants. The first auction on the new site will be held at the end of June.

The launch of such a project will give the company the opportunity to refuse the services of operators, on the sites of which "Дом.ru" held tenders. In addition, the telecom operator will independently monitor all information received during procurement procedures through its data centers. And the electronic trading format will ensure transparency of operations and optimize the timing and volume of purchases, the costs of them, which will help Дом.ru conduct its activities more efficiently.

According to the operator's message, potential suppliers need to register on the portal and go through the document verification procedure. After that, they will receive notifications about purchases of interest to them.

The police are checking in connection with the sale of shares of Yaroslavlteleseti

Deputy of the Yaroslavl Regional Duma Sergei Balabaev said^[13] in March 2016 that the Ministry of Internal Affairs of Russia in Yaroslavl is being checked on the prosecution of officials of local self-government bodies of Yaroslavl who sold shares of Yaroslavlteleset OJSC at a reduced cost.

In response to Balabaev's deputy request, the regional prosecutor's office announced that the head of the inquiry body was instructed "to attach to the materials of the audit the results of an additional study of documents appointed in order to establish the reasons for the decrease in the value of shares of Yaroslavlteleset OJSC." Also, the prosecutor's letter to the deputy contains information that on the facts of violations committed by the employees of the Economic Security Department by the city prosecutor made demands to eliminate violations of criminal procedure legislation. Based on the results of the consideration of the claim, one official was brought to disciplinary responsibility.

In the fall of 2015, the Yaroslavl Region Arbitration Court refused^[14] to satisfy the claim of the ER-Telecom Holding Limited operator against the regional department of the Federal Antimonopoly Service (OFAS), which had previously recognized the sale of Yaroslavlteleset as illegal. In the spring of 2015, ER-Telecom acquired^[15] Yaroslavl^[16] Yaroslavlteleset OJSC (YATS), which it bought at auction from the Yaroslavl authorities for 305.5 million rubles. FAS approved the deal. However, the regional deputy Sergei Balabaev sent statements to the prosecutor's office and the Ministry of Internal Affairs regarding the sale of the YATS, as he considered the value of the asset underestimated. As a result, the Yaroslavl OFAS admitted that when selling shares, the mayor's office violated the law on protection of competition by illegally allowing Online Bureau LLC to participate in the competition. ER-Telecom challenged the OFAS decision in court, but the court refused to support the company.

2015

Stagnation of revenue - 22.2 billion at the end of the year

The revenue of ER-Telecom in 2015 amounted to 22.2 billion rubles, practically unchanged over the year (22.1 billion rubles in 2014). EBITDA decreased by 15.7%, to 7.5 billion rubles. Net debt amounted to 14.4 billion rubles, net debt/EBITDA ratio - 1.9, according to the company's data. Last year, the holding invested 4.1 billion rubles, 20.6% more than in 2014.

Network Activity Metrics

On March 6, 2015, Дом.ru published information about the total volume of Internet traffic of users in its network for 2014 - it grew by 30%. By the end of 2014, Internet users in 56 cities of the company's presence consumed 820 Gbps of traffic.

The most popular among customers:

• video hosting sites and online cinemas (20% of the total traffic),
• social networks (16%),
• search engines (1.3%).

Traffic growth was provided by several factors:

• growth of the number of users,
• increase in speed at tariffs,
• popularization of online resources (video, games, music, etc.),
• increasing the number of devices with Internet access (tablets, smartphones, Smart TVs).

During 2014, Дом.ru gradually increased the speed of Internet access in all cities, without changing the size of the subscription fee.

More than 70% of telecom operator users are connected to tariffs at a speed of 50 Mbps and higher, half of them use the fastest tariff (up to 100 Mbps).

2014: Revenue growth by 15% to RUB 21.3 billion

Revenue based Perm at Er-Telecom Holding in 2014 amounted to 21.3 billion, rubles 15% of this revenue was brought by corporate clients (b2b segment).

Er-Telecom operates under the Дом.ру brand. In 2013, the b2b-direction of the holding was separated into a separate brand - "Дом.ру business" - and brought 12% of the total revenue of the structure at the end of the year. According to the forecast, in 2017 the share of b2b will grow to 20% of revenues, and in 2024, when the holding's revenue should reach 40 billion rubles, - up to 25%.

In 2014, Дом.ru Business's revenue grew by 30% year-on-year to RUB 3.2 billion. The share of the B2B segment in the total revenue of ER-Telecom Holding JSC in 2014 increased to 15%. The total number of connected Internet access points and corporate telephony increased by 28% compared to 2013 and exceeded 87 thousand.

The key source of income remains services for providing Internet access and telephony products. The share of these services in the structure of corporate revenue is 76% and 22%, respectively. Another 2% comes from additional services. At the same time, Дом.ru Business specialists call cloud PBX and other cloud services (SaaS, IaaS), SIP telephony and integration solutions as growth driver products.

Compared to 2013, the share of B2B in the company's revenue structure increased by 3% due to an increase in the portfolio of corporate clients. The main driver of income growth remains the segment of small and medium-sized businesses. Its share in the total corporate portfolio in 2014 exceeded 80%. The share of government customers in the B2B revenue structure was 5%, which is associated with the operator entering the B2G market. The share of federal customers rose to 9%.

The operator's revenue from services for B2B customers doubled in three years, exceeding 3 billion rubles. The subscriber base grew by more than 63%, the total number of connected Internet access points and telephony reached 87 thousand.

Over the course of three years, Дом.ru Business doubled its revenue from corporate services: from 1.5 billion in 2012 to 3.1 billion rubles in 2014. The main driver of revenue growth is services for organizing Internet access and telephony, including a cloud PBX, whose share in the B2B revenue structure is 76% and 22%, respectively. Another 2% comes from additional services.

The total volume of investments in the construction and modernization of the operator network in the cities of presence amounted to about 7 billion rubles, which made it possible to build a powerful network of urban and trunk fiber-optic communication lines with a total length of more than 37 thousand km. Through ring topology and unique technology of GTS (urban universal telecommunication network) used in infrastructure construction, Дом.ru Business provides communication services for corporate clients in 56 cities of Russia in 6 federal districts.

Subscriber base and revenue dynamics, 2015

"The average annual revenue growth rates demonstrated by Дом.ru Business show that with an effective strategy, you can successfully develop your business even in such a complex and highly competitive market as the Russian corporate telecommunications market," said Elena Ventslavovich, Development Director of Дом.ru Business. "We focus on customer needs and quality of service and offer companies tools and technologies that provide new opportunities for business growth

."

In 2014, Дом.ru Business's subscriber base for corporate broadband access service increased by 20% compared to 2013, reaching 65,500 customers. Broadband access remain the main connection driver among all Дом.ru Business services. First of all, growth is provided by new connections in the small and medium-sized business segment. At the same time, the company's strategy is aimed at outstripping the share of federal customers and state customers in the B2B revenue structure.

According to the updated Дом.ru Business strategy presented in the spring of 2015, the share of large federal customers in total B2B revenue by 2017 should increase to 18%, and the share of state customers - to 12%. By 2024, Дом.ru Business plans to increase the share of revenues from B2B services to 25% in the total revenue of ER-Telecom Holding JSC.

The rating methodology is based on key business performance indicators: B2B subscriber base dynamics, revenue from services to corporate customers and ARPU in annual terms. The rating includes both federal and local operators and broadcasters operating in the Russian market.

2013

Revenue growth by 37% to RUB 19 billion

The company's revenue increased by 37% and amounted to 19,021 million rubles. excluding VAT. Revenue from broadband Internet access amounted to 11,575 million rubles, from the provision of cable television services - 5,539 million rubles, from telephony services - 1,370 million rubles.

The share of the B2B segment in total revenue increased to 12%, B2B revenue exceeded 2.5 billion rubles. The increase in revenue for this segment for the year amounted to 56%.

The average monthly revenue per subscriber (ARPU) for all segments in 2013 amounted to 323 rubles, including 18% VAT. The increase was 11% compared to the same period last year.

EBITDA in 2013 increased by almost 6 times compared to 2012, amounting to RUB 5,710 million. EBITDA margin in 2013 amounted to 30%, in 2012 this indicator was at the level of 6%. "Дом.ru" has entered the phase of a positive indicator for net profit, whose value has reached 537 million rubles.

In 2013, the installed network capacity increased by 3% and amounted to 8,704 thousand households. As of December 31, 2013, the total subscriber base of the company amounted to 3,000 thousand apartments, the total number of active contracts in these apartments for all types of services (RGU) amounted to 5,742 thousand. The increase in the subscriber base compared to last year amounted to 198 thousand square meters. (7%) or 535 thousand services (10%).

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

The number of active cable TV contracts in 2013 reached 2,566 thousand. The number of active broadband Internet contracts for the 12 months of 2013 increased to 2,732 thousand. The growth for the year amounted to 281 thousand subscribers, or 11%. The number of active fixed-line telephone agreements amounted to about 445 thousand customers, which is 36 thousand more subscribers than in 2012, an increase of 3% over the year.

At the end of 2013, Дом.ru increased its share in the Russian telecommunications market. According to its own estimates, the company's share in the broadband access (broadband access) market in the Internet increased from 10% to 12%, in the pay-TV segment - from 10 to 13%. The average market share in 56 cities of presence was 28% in the broadband access market and 38% in the pay-TV market.

Telecom operator Дом.ru increased its share in the Russian telecommunications market in 2013. According to its own estimates, the Company's share grew from 10% to 12% in the broadband (broadband access) Internet access market and from 10% to 13% in the pay-TV segment. At the same time, the average market share in 56 cities of presence was 28% in the broadband access market and 38% in the pay TV market.

Subscribers of telephone communications of one of the largest telecom operators in Russia "Дом.ru" said 3.8 billion minutes in 2013. The volume of telephone traffic for the year doubled and exceeded 300 million minutes per month. Users talked for 10 million minutes a day. The total number capacity of the Дом.ru telephone network in the cities of presence exceeds 900 thousand numbers. In 2011 and 2012. the number of telephony users doubled annually and currently amounts to about 450 thousand people.

In 2012-2013, the number of corporate clients using Дом.ru Business services exceeded 70 thousand. Revenue growth during this period amounted to 56%, increasing from 1,619 million to 2,520 million rubles in 2013. The share of the B2B segment in total revenue for 2013 increased to 12% and amounted to 2.5 billion rubles. It is noteworthy that this indicator exceeded the planned indicators by 110%.

The average monthly income per corporate client (ARPU) last year reached 3,515 rubles. Compared to the same period in 2012, the growth was 55%. "The growth demonstrated by Дом.ru Business is significantly ahead of the market growth rate. This is a very positive trend, given that the pace of development of the telecommunications market is slowing down every year, "Mikhail Vorobyov emphasized.

Дом.ru Business services are used by customers in 56 cities of Russia. The number of Internet telephony points of corporate clients has exceeded 70 thousand. 60% of the subscriber base is made up of small and medium-sized businesses. The SOHO segment accounts for 30% of subscribers, although revenue here is growing slower than the rest. The Enterprise segment accounts for 10% of the subscriber base. In the B2B revenue structure, SMB's share reaches 65%.

FAS approved the purchase of Akado by Er-Telecom

On July 23, 2013, it became known that the Federal Antimonopoly Service approved the application of the provider ER-Telecom for the purchase of Akado. The application to buy 100 percent of the shares is approved without additional prescriptions.

The purchase of Akado will make it possible to occupy 20 percent of the broadband Internet access market in Moscow. MTS and Beeline control 28 and 23 percent, respectively.

In June, it became known that MTS claims to Akado. Also among the buyers were the state holdings Svyazinvest, Tsentrtelecom (now part of the state-owned Rostelecom), MegaFon and Transtelecom.

67% of Akado shares before the transaction belonged to the Renova group of Viktor Vekselberg. The remaining 33 percent of securities are controlled by entrepreneur Yuri Pripachkin. The company provides telephony and Internet access services in Moscow, St. Petersburg and Yekaterinburg. In addition, she owns the metropolitan operator of the fiber-optical network "Comcor" and half of the Belarusian "Cosmos TV."

The company strengthened its position in 2013 due to HD television "Дом.ru TV" - an innovative service, gradually launched in the 2nd half of 2012 and the 1st half of 2013. The service combines television (159 digital channels, 50 of which are in HD format), popular Internet applications (social networks, 60,000th video library, Sportbox.ru, 2GIS, Karaoke services) and a wide range of air management functions. According to the results of 2013, the total number of cable and HD television users exceeded 2.5 million people - in terms of subscriber base, Дом.ru ranks 4th among Russian pay-TV operators.

2012

Revenue growth by 43% to RUB 13.8 bln

• Revenue for 2012 increased by 43% to RUB 13,896 million, excluding VAT.

• For the 12 months of 2012, revenue from broadband Internet access amounted to RUB 8,759 million excluding VAT (63% of total revenue), from cable TV services - RUB 4,076 million excluding VAT (29% of total revenue), from telephony services - RUB 1,054 million excluding VAT (8% of total revenue).

• The share of the B2B segment in total revenue continues to grow, in 2012, B2B's revenue exceeded 1.6 billion rubles. The increase in revenue for this segment for the year amounted to 64%. The parallel development of the B2C and B2B segments makes the "Дом.ru" product portfolio more balanced and resilient to changes in the industry.

• The average monthly income per subscriber (ARPU) in 2012 amounted to 297 rubles, including 18% VAT. The increase was 3% compared to the same period last year.

• Despite the high rate of subscriber base recruitment and the relatively recent launch of start-up in the new cities of the project, EBITDA in 2012 took a positive value and increased by 1,468 billion rubles compared to 2011, amounting to 956 million rubles.

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

• In 2012, the installed network capacity increased by 25% and amounted to 8.4 million households.

• As of December 31, 2012, the total subscriber base of the company amounted to 3,009 thousand apartments. The increase in the subscriber base compared to last year amounted to 644 thousand square meters. or 27%.

• Over the year, the share of subscribers consuming more than one operator's service increased from 56% in 2011 to 64% in 2012. The share of triple-play subscribers - subscribers using all three Дом.ru services at once - reached 12%, an increase of 3 percentage points. More than half of the Company's subscribers - 52% - are consumers of a package offer consisting of two services - double-play.

• As of December 31, 2012, the total number of active contracts for all types of services (RGU) amounted to 5,290 thousand. The increase compared to last year amounted to 1,379 thousand or 35%.

• The number of active Cable TV contracts in 2012 reached 2,348 thousand. The increase for the year amounted to 601 thousand subscribers or 34% compared to 2011. The company ranks 4th in Russia in the pay-TV services market.

• The number of active Internet broadband access contracts for the 12 months of 2012 increased to 2,487 thousand. The increase for the year amounted to 587 thousand subscribers or 31%. According to the results of 2012, "Дом.ru" rose by the number of subscribers to 2nd place in Russia in the broadband access market, overtaking two strong federal competitors.

• According to the results of 2012, the number of active fixed telephone communications amounted to about 456 thousand customers, which is 191 thousand more subscribers than in 2011. The increase in the number of subscribers for the year is 72%.

• The RGU per subscriber - the average number of active contracts per subscriber (one apartment) - according to the results of 2012 amounted to 1.76. In 2011, this indicator was at the level of 1.65. The increase in the number of services consumed by one subscriber indicates the success of the batch sales policy implemented by Дом.ru.

Loan in Sberbank for 6.5 billion rubles

Дом.ru signed an agreement with the West Ural Bank of Sberbank of Russia to open a credit line in the amount of 6.5 billion rubles for a period of 6 years, which was the second stage in raising debt financing in the total amount of 12.5 billion rubles for the implementation of the Leadership Strategy announced in early 2010. Thanks to the loan provided by Sberbank, Дом.ru implements the Leadership Strategy in full, completing its formation as the largest independent operator in Russia.

• Дом.ru completed the first stage of construction of its own backbone network. The network with a total length of 4870 km united 10 cities of the company's presence Barnaul-,,, Yekaterinburg Krasnoyarsk Kurgan, Magnitogorsk,, Novosibirsk Omsk, Tomsk, and. Tyumen Chelyabinsk Its own backbone network will allow Дом.ru to fully meet the growing needs of subscribers for heavy content (video, music, online games) and an increase in the speed of traffic exchange between cities, as well as quickly introduce modern services and services.

• "Дом.ru" is launching a new service "Дом.ru TV. Home Entertainment Center. " In many ways anticipating the development of the industry, the company offers subscribers a fundamentally new format of television viewing - "Дом.ru TV" combines television channels and popular Internet services on one screen. In 2012, the service became available to residents of 19 cities. In 2013, the company will launch HD television in all other cities of presence.

• "Дом.ru" according to the service Net Index is recognized as the fastest federal Internet provider in Russia. The average speed of Internet access, which the Company provides to its subscribers in 56 cities of presence, is about 35 Mbps, which is 2 times more than the speed of Internet access on average in Russia (about 16 Mbps).

• " Дом.ru" for the second year in a row is included in the rating of Deloitte Touche Tohmatsu Limited "500 fastest growing companies of the high-tech sector in the regions of Europe, the Middle East and Africa," demonstrating the highest pace of development among companies from Russia and the CIS countries.

• "Дом.ru" entered the top ten ranking of the best Russian innovative companies, prepared by OJSC "RVC" in conjunction with the Association of Innovative Regions of Russia.

2011: Construction of City Universal Telecommunication Networks

Revenue in 2011 amounted to RUB 9,688 million, excluding VAT. The increase compared to 2010 is 43%. A year earlier, the revenue growth rate was 45%. The average revenue growth rate over the past 5 years is 117%.

The decrease in the profitability of the project is due to the entry of ER-Telecom into a new active investment phase - the construction of Urban Universal Telecommunication Networks from scratch. In 2011, the construction of networks and the provision of services in 15 new cities began, in 2010 - in 10 cities, including St. Petersburg and Yekaterinburg, Ufa and Rostov-on-Don.

In 2011, the company implemented 15 start up projects, thereby expanding the geography of its activities to 42 Russian cities from 27 in 2010.

More than 1.5 million people are connected to the broadband Internet access service, 1.34 million to paid television, and more than 160 thousand to the telephone service. Today, 680 thousand subscribers use service packages, which is 23% of the entire subscriber base.

In less than 4 months of 2011, ER-Telecom's subscriber base grew by 11%. In 2010, the number of users of cable television, broadband Internet access and telephony increased by 705 thousand - an increase of 35% compared to the previous year.

According to the company, the growth in the number of users is organic in nature and is due to an increase in the penetration of services on its own networks in existing cities of the project. The contribution of geographical expansion to the increase in the number of subscribers in 2010 did not exceed 20%. The growth driver was package offers, which provided more than 80% in the total increase in the number of users.

In 2011, the installed network capacity increased by 55% compared to 2010 and amounted to 6.7 million households instead of 4.3 million in the previous year.

As of January 1, 2012, the total number of subscribers of the company totaled 3,912 thousand. The increase in the subscriber base compared to 2010 amounted to 1,195 thousand or 44%. The number of cable TV users in 2011 reached 1,747 thousand. The increase is 529 thousand or 43% compared to 2010. The number of Internet users increased to 1,899 thousand. The increase compared to the previous year is 535 thousand or 39%. About 265 thousand customers use landline telephone services. The increase compared to the previous year is 98%.

In 2011, revenue from broadband Internet access amounted to RUB 6,166 million, excluding VAT (64% in the total revenue structure), from the provision of cable television services - RUB 2,868 million, excluding VAT (29% in the total revenue structure), from the provision of telephony services - RUB 650 million, excluding VAT (about 7% in the total revenue structure).

The average monthly income per subscriber (ARPU) in 2011 amounted to 285 rubles, including 18% VAT. Increase of 2% compared to 2010. The growth of APRU is caused by the planned increase in subscription fees for cable television and telephony in accordance with market trends, as well as the introduction of new tariff plans for Internet services with improved consumer qualities.

By the end of 2011, the regional operator ER-Telecom planned to connect 1.7 million cable TV subscribers (KTV) and more than 250 thousand telephony users. At the beginning of October, the operator already served 1.5 million KTV subscribers and 200 thousand telephony.

ER-Telecom has been providing access to KTV (under the Divan-TV brand) since 2003. The service is available in 42 cities where the company operates. In Perm, Samara and Tyumen, since February this year, the operator has also provided access to digital cable TV under the Divan-TV Plus brand, which includes a package of HD channels. The company promises that by the end of 2011 - the beginning of 2012, HDTV service will appear in all cities of its presence.

The Company provided a significant increase in telephony subscribers due to the ability to connect the service at an economical price as part of a package offer (together with high-speed Internet and cable TV), as well as due to organic growth: in 2011, telephony was launched in 11 cities.

ER-Telecom launched a telephony service in 2006 in Perm, which allowed the company to form a full Triple Play package - the simultaneous provision of three key communication services (Internet, cable TV, telephone communication). Currently, the service is available to residents of 27 cities of Russia, in 2012 it is planned to launch it in 12 more cities.

The volume of telephone traffic "Дом.ru" monthly increases by 5% and in December 2011 exceeded 70 million minutes. 90% of traffic falls on urban communications, 10% - on long-distance and international communications.

2010: Talks with Baring Vostok Capital Partners

In February 2010, the company announced a new strategy, for the implementation of which it is necessary to raise approximately $500 million from third-party investors by 2014, to whom the company is ready to sell up to 25% of the increased authorized capital. Companies need the funds to take a 20% share in revenue in the Russian broadband access and cable TV markets by 2014. According to the general director of Er-Telecom Andrei Semerikov, it is planned to raise capital in several stages through a private placement or IPO.

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

In July 2010, in order to increase the attractiveness of the business for third-party investors, shareholders approved the reorganization of Er-Telecom - 14 of its regional subsidiaries were joined to the company.

On September 2, 2010, it became known that the management company Baring Vostok Capital Partners was negotiating the purchase of shares in Er-Telecom for its Baring Vostok Private Equity Fund IV, a manager of one of the investment companies told Vedomosti. A source close to Er-Telecom also knows about this. The size of the sold package is about 10%, this is an additional issue, said the manager of the company - partner of Er-Telecom. Due diligence is coming to an end, he said, and a deal could be signed in the coming weeks. A Baring spokesman said only that information on this account would not be available until a month later. A spokesman for Er-Telecom declined to comment.

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

2009: Revenue of $156 million

Consolidated Financial Statements (Management Statements, 2009):

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

2008: Transfer of subsidiaries to a single holding

The millionth subscriber is connected. The restructuring of the holding was completed, as a result of which all subsidiaries became 100% owned by ER-Telecom Holding CJSC.

According to the results of 2008, the holding companies in the cities in which the company operates account for 39% of the paid television market and 32% of the broadband Internet access market. At the end of 2008, the operator's revenue amounted to 2.9 billion rubles. The increase compared to 2007 was more than 130%.

2007: Work in 17 cities of Russia

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

2006: PFPG buys 51.6% at Er-Telecom

The ER-Telecom project attracted a strategic partner - the Perm Financial and Production Group (the largest investment holding in the Western Urals). In early 2006, PFPG consolidated 51.6 % in CJSC ER-Telecom. In parallel, it was decided to create CJSC ER-Telecom Holding to implement an expanded project development strategy in 15 cities of the Russian Federation.

2005: Expansion into Samara, Volgograd, Volzhsky

The beginning of the project replication, geographical expansion into cities: Samara, Volgograd, Volzhsky.

2004: Successful Network Launch

Operation of GTS, beginning of operations. At the end of the year, due to the successful implementation of the project in Perm, a decision was made on the possibility of expanding the project.

2003: Construction of an optical network in Perm

The period of formation of the City Universal Telecommunications Network (GTS) in Perm. Fiber optic network using optics to home technology. The total capacity of the network was 200,000 apartments

2001: Education of Er-Telecom

ZAO ER-Telecom was formed by the Perm telephone operator ZAO Elsvyaz (created in 1992) and the Internet provider ZAO Reid-Internet (created in 1997).

Notes