Press release
- Rostelecom’s 9M09 revenue amounted to RUR 45,405.8 mln, which is 2.2% less than in the same period in 2008;
- OIBDA for the first nine months of 2009 reached RUR 9,359.6 mln, which is 22.4% lower than in the year-earlier period, while OIBDA margin stood at 20.6%.
- The company’s 9M09 net profit decreased by 34.3% and stood at RUR 4,553.6 mln;
- Revenue from datacom and telematic services doubled in year-on-year terms and stood at RUR 3,757.8 mln.
Moscow – November 2, 2009 - Rostelecom (NYSE: ROS; RTS and ÌICEX: RTKM, RTKMP), Russia’s national telecommunications operator, today announced its unaudited results for the first nine months of 2009 in accordance with Russian Accounting Standards (RAS).
Rostelecom’s revenue for the first nine months of 2009 amounted to RUR 45,405.8 mln, which implies a 2.2% decrease year-on-year, mainly due to a reduction in revenues from a number of traditional segments. However, through the continued diversification of its business, the company substantially raised its datacom revenue. During the reporting period under review, the proportion of value-added services (data and intelligent network services) amounted to 10% of Rostelecom’s total revenue.
During the period under review, incoming ILD traffic terminated in Russia decreased 1.4% y-o-y while transit traffic from international operators experienced a 40.7% increase. In total, incoming ILD traffic amounted to 2,635.0 mln minutes, which implies a 9.4% y-o-y increase. Revenues from international operators for incoming ILD traffic transit and termination rose 10.5% compared with the year-earlier period to RUR 4,925.3 mln.
The decrease in DLD and ILD traffic and revenue is primarily attributable to the economic downturn, rising competition in the long-distance market, as well as ongoing migration of long-distance end customer traffic from fixed-line to mobile networks. In addition, in order to provide clients (end customers /residential & corporate/ and Russian operators) with competitive tariffs the Company adheres to a flexible pricing policy, which also impacted DLD and ILD revenues.
Revenue for the reporting period from other business segments grew by 11.5% year-on-year to RUR 12,419.1 mln. The company achieved a 1.5-fold increase year-on-year in revenues from value-added services, including datacom and intelligent network, to RUR 4,529.2 mln. Revenues from data transmission and telematic services increased by 86.1% year-on-year and totaled RUB 3,757.8 mln.
Revenues from leased-line services decreased by 6.3% year-on-year to RUB 5,518.3 mln. This decrease is mainly attributable to the fact that Russian operators (mobile and RTOs) are nearing completion of the construction of their own networks, thus reducing their demand for channels. This presented operators with the opportunity to provide channels for rent, thus resulting in increased competition in the Russian leased-line market.
Rostelecom’s operating expenses for the reporting period amounted to RUB 39,390.2 mln, which implies a 4.9% y-o-y increase. This increase was mainly due to the higher payments made to international operators due to devaluation of the ruble and an increase in international transit traffic. Additionally, there was also an increase in payments to regional operators for rented channels (last mile) owing to higher sales of Internet and VPN services.
Depreciation in 9M09 amounted to RUR 3,344.0 mln. A 4.0% increase compared to the same period last year is a result of a rise in property, plant and equipment during 2008.
OIBDA decreased 22.4% y-o-y to RUR 9,359.6 mln. OIBDA margin amounted to 20.6% compared to 26% in the same period last year.
EBIT decreased 32.0% y-o-y to RUR 6,015.6 in the first nine months of 2009,
Other gains and losses for the first nine months of 2009 totaled a net loss of RUR 300 mln compared to a net gain of RUR 412.1 mln in the year-earlier period. This loss is attributable to a number of factors, first of all to provision for allowances contrary to their recovery during the first three quarters of 2008 as well as the loss from the sale of investments compared to a RUR 445 mln net gain (including the sale of Golden Telecom’s shares) in the corresponding period of 2008. In addition, foreign exchange losses in the accounting period impacted the overall results.
As a result, Rostelecom’s 9M09 net profit amounted to RUR 4,553.6 mln, which is 34.3% lower in y-o-y terms.
|
Profit and loss statement, RUR, mln |
|
|
|
9M09 |
9M08 |
Change, % |
|
|
|
Revenue |
45,405.8 |
46,414.0 |
-2.2% |
|
|
Operating expenses, incl. |
(39,390.2) |
(37,561.4) |
4.9% |
|
|
Depreciation |
(3,344.0) |
(3,214.4) |
4.0% |
|
|
OIBDA |
9,359.6 |
12,067.0 |
-22.4% |
|
|
EBIT |
6,015.6 |
8,852.6 |
-32.0% |
|
|
Other gains and losses, incl. |
(300.0) |
412.1 |
N/A |
|
|
Loss/profit from the sale of financial investments |
(78.3) |
445.1 |
N/A |
|
|
Loss/profit from the revaluation of financial investments |
310.2 |
(489.2) |
N/A |
|
|
Profit before tax |
5 715.6 |
9 264.7 |
-38.3% |
|
|
Profit tax |
(1,162.0) |
(2,335.2) |
-50.2% |
|
|
Net profit |
4,553.6 |
6,929.5 |
-34.3% |
|
|
|
|
|
|
|
|
Key ratios |
|
|
|
9 M09 |
9M08 |
|
|
Operating margin, % |
13.2% |
19.1% |
|
|
OIBDA margin, % |
20.6% |
26.0% |
|
|
Net margin, % |
10.0% |
14.9% |
|
|
|
|
|
|
|
|
|
Balance sheet, RUR, mln |
|
|
Jan. 1, 2009 |
Sept. 30, 2009 |
Change, % |
|
ÀSSETS |
|
|
|
|
Non-current assets, incl. |
39,168.1 |
42,754.0 |
9.2% |
|
Intangible assets |
0.4 |
0.4 |
N/A |
|
Fixed assets |
23,895.6 |
24,793.4 |
3.8% |
|
Construction in progress |
7,689.2 |
6,813.2 |
-11.4% |
|
Long-term financial investments |
3,778.3 |
4,492.6 |
18.9% |
|
Deferred tax assets |
- |
- |
N/A |
|
Other non-current assets |
3,804.6 |
6,284.3 |
65.2% |
|
Currentassets, incl. |
31,564.7 |
32,268.4 |
2.2% |
|
Inventory |
463.1 |
|
