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Recent news

04.08.2010
Rostelecom generates H1 2010 net profit of RUR 2.23 bln, OIBDA margin reaches 20.3%

Press Release 

  • Revenue for the first half of 2010 amounted to RUR 28,467.7 mln;
  • OIBDA [1] reached RUR 5,789.7 mln;
  • OIBDA margin came in at 20.3%

Moscow – August 04, 2010 – Rostelecom hereby announces its unaudited results for the first six months of 2010, in accordance with Russian Accounting Standards (RAS).

Rostelecom’s H1 2010 revenue amounted to RUR 28,467.7 mln, i.e. a 6.8% y-o-y decrease, which was mainly attributable to a decline in revenue from a number of traditional segments.

  1. However, as a result of ongoing business diversification, Rostelecom managed to lift its revenues from high-tech value-added services, and accordingly, their proportion in total revenue compared to the same period last year. During the reporting period, datacom and intelligent network services (INS) amounted to 15.1% of Rostelecom’s total revenue while revenue from data transmission and telematic services (mainly Internet and VPN services) increased by 46.3% y-o-y, amounting to RUR 3,715.1 mn. It is noteworthy that revenue from VPN services amounted to RUR 1,275.1 mln, which implies a rise of 176% in y-o-y terms. INS revenue rose 11.1% y-o-y to RUR 580.4 mln.    

Rostelecom’s operating expenses for the reporting period totaled RUR 25,258.3 mln, a 6.4% y-o-y decrease, which was mainly due to a reduction in direct costs.

Consequently, Operating Income before Depreciation and Amortization (OIBDA) remained relatively stable compared to the same period last year, amounting to RUR 5,789.7 mln, i.e. a 0.2% y-o-y increase.

The Company’s OIBDA margin was 20.3% compared to 18.9% in the first half of 2009.

Depreciation in the first half of 2010 increased 16.9% y-o-y to RUR 2,580.3 mln, owing to a higher level of investment in the expansion of the Company’s IP/MPLS network.

In the first half of 2010, operating profit decreased by 10.1% y-o-y to RUR 3,209.4 mln.

Other gains and losses for the first half of 2010 amounted to a net loss of RUR 342.5 mln compared to a net loss of RUR 575.8 mln a year ago. This decrease in overall net loss was mainly attributable to a foreign exchange loss.  

 

Rostelecom’s H1 2010 net profit amounted to RUR 2,233.9 mln, which implies a 5.5% decrease y-o-y.

Report on financial results, RUR, mln

 

 

1H 2010

1H 2009

Change, %

 

 

Revenue

28,467.7

30,547.3

-6.8%

 

Operating expenses, incl.

(25,258.3)

(26,975.9)

-6.4%

 

Depreciation

(2,580.3)

(2,206.9)

16.9%

 

OIBDA

5,789.7

5,778.3

0.2%

 

Operating profit

3,209.4

3,571.4

-10.1%

 

Results from other activities, incl.

(342.5)

(575.8)

-40.5%

 

(Loss) from forex rate differences

(262.7)

(447.9)

-41.3

 

Deductions for appraisal reserves

(111.6)

(363.5)

-69.3%

 

Pres-tax profit

2,866.9

2,995.6

-4.3%

 

Income tax

(633.0)

(631.2)

0.3%

 

Net profit

2,233.9

2,364.4

-5.5%

 

 

 

 

 

 

Headline financial indicators

 

 

1H 2010

1H 2009

 

Operating margin, %

11.3%

11.7%

 

OIBDA margin, %

20.3%

18.9%

 

 Net margin, %

7.8%

7.7%

 

 

 

 

 

 

 

 

 

Consolidated balance sheet, RUR, mln

 

1H 2010

1H 2009

Change, %

ASSETS

 

 

 

Non-operating assets, incl.

44,781.1

46,155.2

3.1%

Intangible assets

0.4

0.4

0.0%

Fixed assets

26,239.5

27,840.7

6.1%

Work in progress

8,491.3

8,802.4

3.7%

Investments in tangible assets

342.9

288.7

-15.8%

Long-term financial investments

3,972.3

3,909.4

-1.6%

Deferred tax assets

-

-

N/A

Other non-operating assets

5,734.7

5,313.6

-7.3%

Working assets, incl.

29,593.1

30,176.7

2.0%

Inventories

378.6

454.7

20.1%

VAT on purchased valuables

145.1

50.8

-65.0%

Accounts receivable

8,060.4

10,714.2

32.9%

Short-term financial investments

14,858.2

7,846.1

-47.2%

Cash on hand

6,150.5

11,110.7

80.6%

Other working assets

0.3

0.2

-33.3%

BALANCE

74,374.2

76,331.9

2.6%

 

 

 

 

LIABILITIES

 

 

 

In-house funds

59,456.3

60,159.4

1.2%

Obligations, incl.

14,917.9

16,172.5

8.4%

Long-term obligations, incl.

6,097.0

6,323.5

3.7%

Credits and loans repayable in more than  12 months after reporting date

3,319.2

3,350.9

1.0%

Short-term obligations, incl.

8,820.9

9,849.0

11.7%

Credits and loans repayable within  12 months after reporting date

549.0

543.3

-1.0 %

BALANCE

74,374.2

76,331.9

2.6%

 

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