Support The Moscow Times!

Rostelecom Aims to Keep 2014 Revenues Up Ahead of Privatization

In the first quarter, Rostelecom's revenues climbed 1 percent to 80.4 billion rubles.

State telecoms operator Rostelecom said Tuesday it aimed to keep this year's revenues and core profit margin at least at last year's levels as it presses ahead with an efficiency drive before possible privatization.

Rostelecom, which recently spun off its mobile business into a joint venture with Tele2 Russia to focus investment on broadband and pay television, is pencilled in for privatization this year. It has been taking measures to boost operational efficiency, including improving procurement procedures.

According to the company's presentation, it aims at growing revenues from fixed-line businesses by 1 to 2 percent this year while maintaining its core profit margin year-on-year. The margin stood at 34.8 percent in 2013.

"There are clear signals that we are improving our operating efficiency and we are on track to meeting our target for this year of reducing our operating expenses by 5 billion rubles," chief financial officer Kai-Uwe Mehlhorn said in a statement.

In the first quarter, Rostelecom's revenues climbed 1 percent to 80.4 billion rubles ($2.35 billion), as a 23 percent rise in pay television sales and 11 percent growth of broadband revenues helped offset declines in fixed-line and mobile revenues.

Its operating income before depreciation and amortization, OIBDA, fell 10 percent to 26.5 billion rubles, with the margin sliding to 33 percent from 37 percent a year ago. Net profit grew 8 percent to 6.9 billion rubles, reflecting an income from the disposal of Rostelecom's mobile business.

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

paiment methods
Not ready to support today?
Remind me later.

Read more