Russian Towers to boost revenue by 40% in 2017, facilities by 30%

By Yekaterina Yezhova

MOSCOW, Mar 29 (PRIME) -- Russian Towers Group, the country’ biggest independent infrastructure operator and owner of antenna-mast facilities, plans to raise 2017 revenue by 40% compared to a 50% increase in 2016, President Alexander Chub said on Wednesday at a news conference.

“The group will expand the scale of its business in 2017, and the number of infrastructure units will grow by 30% from about 2,500 as of the beginning of the year. They’re located in 54 regions of the country, and we’ll increase their density in 27 regions,” Chub said.

The country’s four biggest mobile operators – MTS, MegaFon, VimpelCom (Beeline) and T2 RTK Holding (Tele2) – accounted for 90% of Russian Towers’ revenue, he said.

In 2016, the number of facilities spiked by 45% with the group’s focus on the lucrative markets of Moscow, where the infrastructure volume added 50%, and the Moscow Region, where the number of facilities almost tripled within the year.

Russian Towers’ had 4,500 contracts as of the end of 2016, up 55% on the year, as Chub said.

“In 2017, the main development will focus on Moscow and the Moscow Region, but a huge part of new facilities will be put in operation in other regions thanks to scaling infrastructure projects on other territories,” he said.

Artur Akopyan, managing partner at UFG Private Equity, one of the group’s six main owners, said the shareholders are satisfied with the Russian Towers’ performance. “We’re optimistic about prospects. The investors are ready to help financially if needed,” he said.

“Volumes of (infrastructure) building are rebounding, and operators are unfreezing their investment as they are feeling stronger.”

If Russian Towers needs money for a large deal, like a probable purchase of towers from a big mobile operator, the group’s shareholders may engage several more investors, Akopyan said.

The other big holders of Russian Towers are the European Bank for Reconstruction and Development; the International Finance Corporation; Macquarie Russia CIS; ADM Capital; and Sumitomo Corporation.

Russian Towers’ head Chub said the group is thinking of expansion into foreign markets, mainly the CIS. “We see huge potential in the markets of Ukraine and Kazakhstan. Georgia and Armenia also look interesting,” he said.

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