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Recent news

07.05.2010
Rostelecom reports Q110 RAS net profit of RUR 1.03 bln

Press release

  • Rostelecom’s Q110 revenue amounted to RUR 14,108.4 mln;
  • OIBDA[1] stood at RUR  2,963.6 mln;
  • OIBDA margin reached 21.0%. 

Rostelecom (RTS and MICEX: RTKM, RTKMP; OTCQX: ROSYY) hereby announces its financial (non-audited) results financial results for the first quarter of 2010, which were drafted in accordance with Russian Accounting Standards (RAS).

Rostelecom’s first quarter 2010 revenue amounted to RUR 14,108.4 mln, which implies an 8.2% decrease year-on-year, which was mainly due to a decline in revenues from a number of traditional segments.

By contrast, the company increased revenues from high-tech services owing to continued business diversification, and thus their proportion in total revenue, compared to same quarter last year.

During the period under review, datacom, telematic services and intelligent network services amounted to 12.6% of Rostelecom’s total revenue. Revenues from datacom and telematic services, (mainly Internet and VPN services) as a standalone entity went up 15.3% year-on-year, amounting to RUR 1,494.9 mln.

Rostelecom’s operating expenses for the reporting period amounted to RUR 12,424.9 mln, a 5.1% y-o-y decrease, which was mainly attributable to a reduction in direct costs.

Operating Income before Depreciation and Amortization (OIBDA) amounted to RUR 2,963.6 mln, which implies a 12.3% decrease compared to the year-earlier period.

The company’s OIBDA margin was 21.0% compared to 22.0% in the first quarter of 2009.

Depreciation charges for the first quarter of 2010 increased 17.0% year-on-year to RUR 1,280.2 mln, due to the rapid pace of investment in the expansion of the company’s in-house IP/MPLS network.

In the first quarter of 2010, operating profit decreased by 26.3% year-on-year to RUR 1,683.4 mln.

Other gains and losses for the first quarter 2010 amounted to a net loss of RUR 438.7 mln compared to a net gain of RUR 197.6 mln in the year-earlier period. This loss is largely attributable to a significant foreign exchange rate loss during the accounting period.

Rostelecom’s first quarter 2010 net profit amounted to RUR 1,028.9 mln, a decrease of 48.0% in year-on-year terms.                                                                                                                                                                                   

 

Profit and Loss Statement, RUR, mln

  

 

 

3M2010

3M2009

Change, %

  

 

  

 

Revenue

14,108.4

15,375.1

-8.2%

  

 

Operating expenses, incl.

(12,424.9)

(13,089.6)

-5.1%

  

 

Depreciation

(1,280.2)

(1,094.1)

17.0%

  

 

OIBDA

2,963.6

3,379.6

-12.3%

  

 

Operating profit

1,683.4*

2,285.5

-26.3%

  

 

Other gains and losses, incl.

(438.7)

197.6

N/A

  

 

Foreign exchange rate (loss)/ gain

(414.5)

419.1

N/A

  

 

Provision for allowances

(85.2)

(226.0)

-62.3%

  

 

Profit before tax

1,244.7

2,483.1

-49.9%

  

 

Profit tax

(215.9)

(502.7)

-57.1%

  

 

Net profit

1,028.9*

1,980.4

-48.0%

  

 

 

 

 

 

  

 

Key financial ratios

  

 

 

3M2010

3M2009

  

 

 Operating margin, %

 

 

  

 

 OIBDA margin, %

21.0%

22.0%

  

 

 Net margin, %

7.3%

12.9%

  

Balance Sheet, RUR mln

  

 

January 1, 2010

March 31, 2010

Change, %

  

ASSETS

 

 

 

  

Non-current assets, incl.

44,781.1

44,723.9

-0.1%

  

Intangible assets

0.4

0.4

0.0%

  

Fixed assets

26,239.5

26,383.7

0.5%

  

Construction in progress

8,491.3

8,539.1

0.6%

  

Investment in lease

342.9

315.8

-7.9%

  

Long-term financial investments

3,972.3

3,990.2

0.5%

  

Deferred tax assets

-

-

N/A

  

Other non-current assets

5,734.7

5,494.7

-4.2%

  

Current assets

29,593.1

30,474.6

3.0%

  

Inventory

378.6

387.5

2.4%

  

VAT on acquired assets

145.1

66.3

-54.3%

  

Short-term financial investments

8,060.4

8,500.6

5.5%

  

Short-term financial investments

14,858.2

12,128.2

-18.4%

  

Cash and cash equivalents

6,150.5

9,391.8

52.7%

  

Other current assets

0.3

0.2

-33.3%

  

BALANCE

74,374.2

75,198.5

1.1%

  

 

 

 

 

  

SHAREHOLDERS’ EQUITY AND LIABILITIES

 

 

 

  

Shareholders’ equity

59,456.3

60,485.0

1.7%

  

Liabilities, incl.

14,917.9

14,713.5

-1.4%

  

Long-term liabilities, incl.

6,097.0

5,942.3

-2.5%

  

Loans due more than in 12 months

3,319.2

3,289.8

-0.9%

  

Short-term liabilities, incl.

8,820.9

8,771.2

-0.6%

  

Loans due less than in 12 months

549.0

547.3

-0.3 %

  

BALANCE

74,374.2

75,198.5

1.1%

  

 

[1]   OIBDA is calculated as revenue minus expenses for main activities not including depreciation.

*  The figure was derived by rounding the original number to RUR ‘000 instead of totaling the rounded values shown in this table.