OREANDA-NEWS. Tele2 Russia, an alternative mobile operator, reports that АК&M reaffirmed Tele2 St Petersburg rating at A+ with stable outlook.

The A+ rating is assigned to companies that are creditworthy and have a low risk of not covering liabilities on time.

 CJSC Tele2 St Petersburg showed strong financial FY2012 results and thereby confirmed it was up to the credit rating assigned. Thus, the 2012 revenue under RAS increased 13.5% and totaled RUB10 bn for the first time. Tele2 St Petersburg outperformed other operators in terms of profitability growth.

 One of the key factors to support a positive rating was a steady growth of Tele2 Russia key efficiency ratios. In 2Q13, Tele2 Russia operating revenue gained 12% as compared to the same period last year and totaled RUB16.4 bn, whereas EBITDA margin increased 11% y-o-y to RUB5.9 bn. According to АК&M analysts, Tele2 Russia’s strengthened stance will contribute to improvement of the company’s separate business units.

 Despite market growth stagnation, Tele2 Russia has exhibited outstanding operating results. While maintaining good profitability numbers, the company is also building up its subscriber base. In 1Q13 Tele2 Russia accounted for 44% of new additions in Russia. In 2Q13 the number of the operator’s clients gained 353 thou people and exceeded 23 mn subscribers.

 Lyudmila Smirnova, Tele2 Russia chief financial and administrative officer:

 “The A+ rating assigned to Tele2 confirms effectiveness of Tele2 Russia business model. The operator is showing outpacing growth rates of financing and operating results, which is mainly due to effective cost control and systematic work on cost cutting. Affirmation of a stable outlook proves that business, development prospects and Tele2 Russia stance in the country are valued highly”.