Rostelecom: RUB 72.4bn sales revenue in Q1 2011

2011-07-06



Rostelecom, the Russian national telecom operator, reported RUB 72.4bn (€1.8bn) in sales revenue in Q1 2011, 8% more than in the first quarter of the previous year. The company’s net profit increased by 6% year on year and reached RUB 10.6bn (€265m) while capital expenditures increased by 64% year on year to RUB 15.1bn (€377m) in Q1 2011.

The main driver of Rostelecom’s revenue growth in Q1 2011 were the sales of broadband internet access and wholesale telecommunication services. Sales of local fixed-line telephony were stagnating while DLD/ILD revenues declined.

In February 2011, Rostelecom acquired NTC, a CaTV company with 4.6 million subscribers, and in June the operator bought a 39.87% share in Bashinformsvyaz, a regional provider of telecommunication services with more than one million fixed-line telephony and 251,000 broadband internet customers. The acquisitions are a part of Rostelecom’s strategy for gaining the leading position on the fixed-line broadband internet and pay TV market by 2015.

Revenue structure and main operational indicators of Rostelecom, Q1 2010/Q1 2011

	Q1 2010	Q1 2011	Change (y-o-y)
Local fixed-line telephony services (RUB bn)	21.3	21.6	1%
Regional fixed-line telephony services (RUB bn)	5.9	5.3	-10%
DLD/ILD services (RUB bn)	9.6	8.8	-8%
Mobile telephony services (RUB bn)	7.3	7.2	-1%
Fixed-line broadband internet access (RUB bn)	9.7	11.5	19%
Pay TV services (RUB bn)	0.2	1.4	569%
Wholesale telecommunication services (RUB bn)	9.7	12.4	28%
Other services (RUB bn)	3.3	4.0	22%
Number of fixed-line telephony subscribers (m)	29.6	29.2	-1%
Number of mobile telephony subscribers (m)	15.2	12.4	-18%
Number of fixed-line broadband internet subscribers (m)	5.6	7.4	33%
Number of pay TV subscribers (m)	0.8	5.5	605%

Source: Rostelecom, 2011