UPDATE: Rostelecom expects revenue to rise 45%/year in 20182022 - News Archive - PRIME Business News Agency - All News Politics Economy Business Wire Financial Wire Oil Gas Chemical Industry Power Industry Metals Mining Pulp Paper Agro Commodities Transport Automobile Construction Real Estate Telecommunications Engineering Hi-Tech Consumer Goods Retail Calendar Our Features Interviews Opinions Press Releases

UPDATE: Rostelecom expects revenue to rise 45%/year in 20182022

(Adds details on debt in paragraphs 67)

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.

Under the new strategy, the net debt/OIBDA ratio will not go beyond 2, and the company targets at 1.71.8 in 2022, the companys head said.

The operators net debt was at 181.594 billion rubles as of the end of 2017, and the net debt/OIBDA ratio was at 1.9 against 1.8 in 2016. Most of the debt, or 99%, is denominated in rubles.

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 17:31
 
 
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