Rostelecom IFRS net income rises 12% to 6.4 bln rbl in Jul–Sep

MOSCOW, Nov 7 (PRIME) -- The net income of Russian state-controlled telecom operator Rostelecom increased 12% on the year to 6.412 billion rubles in July–September, as calculated under International Financial Reporting Standards (IFRS), the company said on Thursday in a statement.

Revenue rose 5% to 83.727 billion rubles.

Operating income before depreciation and amortization (OIBDA) increased 2% to 27.896 billion rubles. The OIBDA margin went down 1.1 percentage points to 33.3%.

Operating income decreased 4% to 10.455 billion rubles. Capital expenditure (CAPEX) shrank 1% to 16.081 billion rubles.

The net debt widened 1% to 205.053 billion rubles.

President Mikhail Oseyevsky said, “We delivered robust topline and operational growth in the third quarter of 2019. Our digital segment grew by 13% and is closing in on an almost 60% contribution to the Group revenue. Total revenue across the Group grew by 5%, in-line with our strategic objective.”

Senior Vice-President and Chief Financial Officer Sergei Anokhin said, “Our strong third quarter results are in line with our budget plan in terms of reaching targets around expanding the digital segment and improving internal efficiencies.”

In January–September, the net income increased 29% on the year to 16.362 billion rubles. Revenue grew 4% to 242.554 billion rubles.

OIBDA gained 9% to 81.440 billion rubles. The OIBDA margin went up 1.5 percentage points to 33.6%.

Operating income rose 8% to 29.920 billion rubles. CAPEX increased 17% to 53.667 billion rubles.

“Our results and achievements for the nine months provide us with sufficient visibility on year-end performance to confirm our guidance for revenue and OIBDA for 2019. We expect both KPIs to grow by no less than 3%. We also expect the CAPEX program to be within the range of 65–70 billion rubles, taking into account 7 billion rubles of regulatory CAPEX and excluding the implementation of state programs,” Anokhin said.

(63.5880 rubles – U.S. $1)

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