Rostelecom says IFRS Jan–Mar net income rises 1% to 7.7 bln rbl

MOSCOW, May 19 (PRIME) -- The net income of Russian state-controlled telecom operator Rostelecom rose 1% on the year to 7.712 billion rubles in January–March, as calculated under International Financial Reporting Standards (IFRS), the company said on Tuesday in a statement.

Revenue increased 10% to 121.613 billion rubles.

Operating income before depreciation and amortization (OIBDA) grew 12% to 47.082 billion rubles. The OIBDA margin added 0.7 percentage points to 38.7%.

Capital expenditure decreased 15% to 21.997 billion rubles.

The net debt widened 18% to 392.821 billion rubles.

“Rostelecom Group’s consolidated results for the first quarter of this year reflect the first contribution from full integration of Tele2 Russia. Together, we have managed to increase revenue and OIBDA by 10% and 13% respectively,” Rostelecom President Mikhail Oseyevsky said.

Senior Vice President and Chief Financial Officer Sergei Anokhin said, “The opening months of 2020 delivered strong financial results and a good backlog of business for the rest of the year. In response to the pandemic, the company has developed several scenarios when it comes to how we will respond to the developing situation in the economy, how the corporate economic activity may vary, and what the population and state institutions will require. An action program for each of the scenarios has been adopted.

“We expect a decline in economic activity in a number of areas, which may cause growth in Rostelecom’s business to slow. At the same time, we also see a significant increase in demand for digital services and solutions relating to digitalization of infrastructure from large corporations, as well as introduction of digital solutions for remote working and learning…But we also see a high level of uncertainty regarding the on-going self-isolation, the scope of government aid to the households and industries hit by the crises and how the macro indicators are going to develop. Taking account of these factors, Rostelecom will update the market on the guidance under the new perimeter of consolidation in the coming reporting periods,” Anokhin said.

Rostelecom also said that 60,000 employees have been working remotely since March 16.

“A permanent remote working policy is under development for after the COVID-19 pandemic. The initiative will generate more attractive working conditions for the staff and allow significant cost savings on office rent and maintenance going forward,” the company said.

(72.9798 rubles – U.S. $1)

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