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Rostelecom expects revenue to rise 45%/year in 20182022

SKOLKOVO, Moscow Region/MOSCOW, Mar 21 (PRIME) -- Russian state-controlled telecom operator Rostelecom expects its revenue to grow on average by 45% per year in 20182022, according to the companys new development strategy unveiled on Wednesday.

Operating income before depreciation and amortization (OIBDA) margin is seen at over 32% in the forecast period. The capex/revenue ratio, excluding state programs, will decrease to 17%.

The companys capital expenditures were at 60.8 billion rubles in 2017, or 19.9% of revenue. Revenue rose 3% in 2017 to 305.3 billion rubles. OIBDA was at 96.9 billion rubles, and OIBDA margin was at 31.7%.

The operators President Mikhail Oseyevsky said Rostelecoms revenue will reach 375 billion rubles in 2022. Id like to notice that well lose about 40 billion rubles of revenue from traditional telephony over these five years, he said at the Investor Day.

The strategy does not stipulate any big mergers and acquisitions, big from the point of view of an impact on the strategy, on our basic financial resultsProbably, (deals) could emerge. It will require a revision of the strategy. Its a natural process.

Rostelecom will downsize its staff by 1015% to 115,000120,000 people by 2022 from 134,000 employees at present, according to the strategy.

The company will raise the share of employees with digital skills to 25% from 19% in 2017. Worker productivity should increase by 40% by 2022.

Oseyevsky also said that Rostelecom plans to hugely reduce the number of its subsidiaries. The the company does not intend to raise its 45% share in mobile operator T2 RTK Holding, working under the Tele2 brand. The matter is not on the agenda now, he said.

(57.7033 rubles U.S. $1)

End

21.03.2018 16:57
 
 
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