|
Articles & publications
09.04.2010
Ruble gave a boost to Central TelegraphComNews, Tatyana Zolotova
Moscow-based telecommunications operator Central Telegraph (CT, Qwerty trade mark, which is controlled by Svyazinvest), raised its FY09 RAS net profit by 25.5% compared to the year-earlier period, up to RUR 185 mln. In dollar terms, the operator’s net profit decreased by 1.97% year-on-year.
Central Telegraph is one of Svyazinvest’s main assets located in the city of Moscow, a strategic market for the holding. Ct has rolled out a large cable network, is in the process of developing content services and provides fixed mobile convergence (FMC) services and is geared towards the corporate segment in the telephony business. In 2009 the operator’s revenue from telecommunications services increased by RUR 176 mln compared to the year-earlier period and amounted to RUR 3.3 bln.
As of December 2009 the operator had a subscriber base amounting to 176,000 active broadband Internet subscribers, of which about 150,000 are located in Moscow. CT’s broadband Internet network provides services to 1.7 mln households, of which some 1.5 mln are in Moscow. As the director general of CT Igor Zabolotny told a ComNews reporter earlier, the average revenue per user (ARPU) amounts to RUR 410 per month. As of the beginning of 2010, ARPU stood at approximately RUR 430 (see ComNews article dated December 23, 2009).
The operating expense of Central Telegraph totaled RUR 2.992 bln and increased by 3.7% compared with the same period last year. Operating profit increased by 16.3%, totaling RUR 622 mln, while revenue increased by 5.6% to RUR 3.614 bln.
In 2009, CT reported EBITDA of RUR 682 mln (compared to RUR 522 mln in 2008). Accordingly, growth amounted to 30.6%. Compared to the same period such operating efficiency indicators as EBIT went up from 15.6% to 17.2%, net profit margin increased from 5.1% to 6.2% and EBITDA margin jumped from 15.3% to 18.9%, the press service of Central Telegraph said in a statement.
“It was no easy matter for us to achieve the pre-crisis targets factored into the 2009 budget. As our more than 155-year history has shown, crises come and go, but Central Telegraph continues to move ahead”, the head of the company told a ComNews reporter. “The company’s 25% profit increase in ruble terms in 2009 is not bad performance for a year marked by the financial downturn. That said, it should be noted that last year witnessed a serious devaluation of the ruble against the US dollar. The average exchange rate of the ruble to the dollar rose 27.69 % in 2009 (31.68 on average in 2009 compared to RUR 24.81 in 2008). Thus, in dollar terms, the company’s net profit decreased by 1.97%”, Mr. Zabolotny told ComNews Research analyst Artem Akchurin, summing up the company’s FY09 performance.
According to the company’s CEO, the 2009 results will be a launching pad for its 2011 investment plans. In December 2009 the board of directors of CT approved the company’s budget for the above year and it calls for nearly a 4-fold increase in broadband Internet expenses up to RUR 90 mln.
In the first place, CT intends to advertise its services more aggressively (leaflets in the Metro or media publications). In addition, cable TV channels will be made operational in the suburbs of Moscow (see ComNews article dated December 25, 2009). And in 2010 CT intends to provide connectivity to 60,000 broadband subscribers in the Moscow region.
For reference
Central Telegraph (CT) was incorporated in 1852. The company owns a 2,300-km fiber optic telecommunications network in Moscow and the suburbs of Moscow and a 2,200-km Moscow network operated by Centel, a subsidiary.
One of the company’s key projects involves rolling out a unified multi-service network in the Moscow region. Construction of the network being rolled out by CT and Centel has been underway since 2004 and its currently provides coverage of over 70 areas of Moscow, as well as cities in the outskirts of Moscow, including Balashikha, Krasnogorsk, Lobnya, Lyubertsy, Korolev, Mytishi, Odnitsovo and Khimki. The company is controlled by Svyazinvest holding. Short-term liabilities as of year-end 2009 amounted to RUR 2.513 bln (vs. RUR 2.616 bln in 2008), and long-term liabilities equal to RUR 621.677 mln (compared to RUR 829.902 mln in the year-earlier period).
|
