Tattelecom

The telecommunication network of OAO Tattelecom fully covers the Republic of Tatarstan, which makes it possible to provide communication services to more than 3, 7 million people in the territory of 68 thousand square meters. km

With Tattelecom, about 800,000 telephone subscribers and about 500,000 broadband Internet subscribers. A feature and, at the same time, the advantage of the company is the developed network infrastructure and the possibility of comprehensive provision of services to all categories of subscribers (population, organizations) throughout the service area. OAO Tattelecom provides local and area telephone services, provides a full range of data transmission network services, Internet access, the whole range of modern telecommunication services, and is also the only operator of interactive digital television ("Fly TV") in the Republic of Tatarstan.

Performance indicators

2023

Revenue growth by 6.6% to 10.6 billion rubles (according to RAS)

In 2023, Tattelecom raised 10.6 billion rubles (according to RAS), which is 6.6% more than a year earlier. This includes the income of subsidiaries of PJSC Tattelecom, TMT LLC (Letai brand), TTK-Digital LLC and MIG LLC.

Net profit of PJSC Tattelecom at the end of 2023 decreased compared to 2022 and amounted to 1.4 billion rubles, while a year earlier it was measured at 1.5 billion rubles. TMT's net profit in 2023 amounted to 452.1 million rubles, an increase of 47.2% compared to 2022 (307.1 million rubles). The total profit of these two companies amounted to 1.81 billion rubles, which approximately corresponds to the indicator of one year ago.

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A slight decrease in the profitability of the Group's operations is due to an increase in costs due to the retention of the cost of tariffs for communication services and a significant increase in the wage fund, which was forced to increase against the background of the general market trend. The cost of materials, equipment and other resources necessary for the provision of communication services also continues to grow, - explained the general director of PJSC "Tattelecom" Airat Nurutdinov, commenting on the financial results.

It also follows from the reports of Tattelecom that the company's revenues in the fixed-line services market in 2023 reached 8.8 billion rubles (+ 4.7% compared to 2022) with a net profit of 1.4 billion rubles (-10.2%). In the mobile segment, revenue rose by 8.2% (to 2.1 billion rubles), net profit - by 47.2% (to 452.1 million rubles).

According to the materials of Tattelecom, in 2023 the company connected about 97 thousand households in 81 settlements to the Internet using GPON technology, built 97 base stations and updated 415 sites, as a result of which mobile coverage appeared in 72 new settlements.

Tattelecom's 2023 financial statements

Sharp rise in price of shares since the beginning of September

In early September 2023, it became known that the shares of the largest universal telecom operator in Tatarstan, Tattelecom, rose sharply in price. In just four days from September 4, 2023, their cost has risen approximately twice.

During the specified period, the share rate of PJSC Tattelecom jumped by 93%. The peak growth of quotations was recorded on September 6, 2023, when the value of securities reached 1.71 rubles. By the end of the trading session on this day, the price began to decline, stopping at 1.49 rubles. On September 7, 2023, the course continued to decline.

Since the beginning of September, Tattelecom shares have doubled in price

Market participants believe that such a significant increase in the exchange rate has no fundamental reasons. In particular, Pavel Gavrilov, an expert on the stock market at BCS World of Investments, believes that the observed picture is explained exclusively by speculative manipulations. According to him, such situations are increasingly observed during operations with third-tier shares.

The ups of the last year are atypical, we see that there are more of them, and growth occurs by tens of percent, and most often - unreasonably. The exchange is working to regulate such ups, investors should be careful or even bypass such stories without obvious reasons to buy, Gavrilov said.

The Central Bank of Russia also declares the manipulation of stock rates on the stock exchange. According to estimates, during the first quarter of 2023 alone, the same number of incidents were recorded as for the entire 2022. Among the companies that suffered from such manipulations, the Moscow Exchange named PJSC Rosseti Yug, PJSC GIT, PJSC Permenergosbyt and PJSC Saratovenergo. However, the general director of "Tattelecom" Airat Nurutdinov calls the growth of the operator's shares "a natural result of the activities of the new management." According to him, the increase in the company's capitalization has been observed since 2019 and will continue.

2022: Revenue growth 3.9% to RUB 10.42 billion (IFRS)

Tattelecom's revenue in 2022 amounted to 10.42 billion rubles (according to IFRS) against 9.93 billion rubles a year earlier. Thus, revenue rose by 3.9%. The telecom company disclosed the relevant data in its financial statements published at the end of April 2023.

The group's net profit in 2022 amounted to 2.49 billion rubles against 2.64 billion rubles in profit a year earlier.

Tattelecom's revenue in 2022 amounted to 10.42 billion rubles

It is noted that the main increase was provided by income from Internet access and video surveillance services. In the segment of Internet access, revenues in 2022 increased by 6.4% to 4.41 billion rubles, for video surveillance services - by 7.6% to 212.9 million rubles. Revenue from services for organizations increased by 7.7% and reached 5.1 billion rubles.

According to the results of 2022, cash balances in bank accounts of the Tattelecom group of companies increased by 39.2%. The company adheres to a conservative strategy of investing free cash. The selected low-risk instruments helped maintain positive returns in stressful market situations, the group said.

Tattelecom also spoke about the results of the development of communication networks in Tatarstan: 252 base stations were built and modernized in the republic in 2022, the average data transfer rate for the year increased by 10% with an increase in subscriber traffic by 16%. A record number of households were covered ahead of schedule, which had to be provided with fiber-optic communication lines in the suburbs and remote villages of the republic on behalf of the President of Tatarstan. The development of IP-intercom allowed Tattelecom to also exceed the annual plan for the modernization of the intercom fleet - at the end of 2022, more than 6,000 panels were installed, the company said.

2018

The Group's revenue for 2019 amounted to RUB 9.68 billion, which is 4.5% more than in 2018. Despite a slight decrease in revenue in the wired segment (according to PJSC Tattelecom, by 1.1% - to 8.17 billion rubles), which has been observed in the industry as a whole for several years, the growth in the Group of Companies was ensured by an increase in mobile revenues (TMT LLC) by 47.2%, to 1.71 billion rubles.

The Group's net profit increased to RUB 586.4 million, with a 257% increase driven by an increase in the wired and wireless segments. Net profit of the parent company increased from 805.2 million rubles to 842.2 million rubles, or 4.6%, the loss of TMT LLC decreased from 641 million rubles to 355.8 million rubles.

At the same time, the value of EBITDA for TMT LLC in 2019 first entered the positive zone and amounted to 242.1 million rubles with a negative value of 104.2 million rubles a year earlier. The growth of EBITDA of PJSC Tattelecom amounted to 7.1% - from 2,329,7 million rubles to 2,495,8 million rubles. The Group's EBITDA for 2019 amounted to RUB 2,837,9 million, 27.5% higher than in 2018.

The Group's EBITDA Margin for 12 months was 29.3% compared to 24% in 2018, for PJSC Tattelecom - an increase from 28.2% to 30.6%, for TMT LLC - from a negative value to 14.2%.

2016

Tattelecom's revenues in 2016 amounted to 8080.8 million rubles, an increase of 2% compared to 2016. Among communication services, pay TV showed the greatest dynamics - in this segment, the operator's income increased by 13.7% to 803.5 million rubles, according to the operator's annual report.

Most of Tattelecom's revenues are generated by revenues from broadband access services to the network Internet - 40% and revenues from traditional communication services (local and intra-zone telephone) communication - 32%.

The operator has the greatest potential to maintain revenue growth in the provision and development of services based on data transmission and pay television, the report said. The share of these services in the income structure is constantly increasing, in 2016 it amounted to 51%, exceeding the share of revenues from traditional telephony, the share of which continues to decline and amounted to 32% in 2016.

At the end of 2016, the number of Tattelecom broadband access subscribers reached 572.5 thousand. In 2016, the company retained its market share in Tatarstan, which at the end of the year amounted to 60%. The operator also serves more than 416.2 thousand TV subscribers (of which 147.6 thousand digital television subscribers and 268.6 thousand analog). The company's share in the paid wired TV market in the region increased by 1% and amounted to more than 50%.

In 2016, the company launched a new product "Ultra TV," which combines analog (more than 60 channels) and digital (more than 150 channels, including high-definition channels) cable TV without installing additional equipment for the subscriber.

The main commercial goal for 2017, Tattelecom determined the continuation of the recruitment of an active mobile subscriber base by promoting competitive tariffs with the subsequent monetization of the recruited subscriber base. To develop mobile sales channels, in addition to cooperation with dealer salons, it is planned to open a large number of own mobile salons in large cities of Tatarstan.

2015

In 2015, telecom operator Tattelecom received a net profit under RAS in the amount of 789 million rubles, which is 2% more than in 2014. The company's revenue amounted to 7.923 billion rubles, which is 4% more than in 2014. Profitability remained at the level of 10%.

The main part of the operator's income is formed by income from broadband access services to the network Internet (39%) and income from traditional communication services (local and intra-area telephone services, communication which account for 36%).

Over the past year, revenues from paid television services increased by 22.3%, to 706 million rubles. At the same time, the number of subscribers for this service exceeded 376.4 thousand (134.6 thousand digital television subscribers and 241.8 thousand analog television subscribers).

Tattelecom also states that the operator has the greatest potential to maintain income growth in the provision and development of services based on data transmission and pay television. Their total share in the income structure is constantly increasing: already in 2015 it amounted to 48%, exceeding the share of income from traditional telephony.