Russia’s Rostelecom IFRS net profit jumps 43% to 3 bln rbl in Q1

MOSCOW, May 17 (PRIME) -- The net profit of Russian state-controlled telecom giant Rostelecom soared 43% on the year to 3.002 billion rubles in January–March, as calculated under International Financial Reporting Standards (IFRS), the company said in a statement Tuesday.

Revenue rose 1.1% to 72.464 billion rubles.

Broadband incomes increased 4% to 16.442 billion rubles and incomes from pay TV grew 23% to 5.613 billion rubles. Incomes from fixed line connection services shrank 11% to 22.909 billion rubles.

Operating income before depreciation and amortization (OIBDA) rose 1% to 24.670 billion rubles. OIBDA margin slipped 0.2 percentage points to 34%.

Operating profit contracted 8% to 8.502 billion rubles. Capital expenditures rose 16% to 18.964 billion rubles.

The company’s net debt widened 3% on the year to 176.532 billion rubles as of March 31.

“We started 2016 with confidence, having achieved strong operating and financial results within the first three months of the year. This was made possible through the development of our digital services on the basis of an upgraded network infrastructure, improved customer services, and our continuing work to enhance operational efficiency. The strong momentum that we have developed will ensure the timely implementation of our strategic initiatives,” the company’s President Sergei Kalugin said.

“For the remainder of 2016, a great deal of our attention will be spent on building business in new digital segments, in improving our organizational structure and the launch of new network infrastructure transformation programs.”

The operator’s Senior Vice-President and CFO Kai-Uwe Mehlhorn confirmed the company’s outlook for 2016. “We expect this year’s revenue to grow by 1–2%, OIBDA to stay at a 2015 level and capital expenditure to be less than 19% of revenues, excluding the Bridging the Digital Divide project,” he said.

(64.8895 rubles – U.S. $1)

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