Rostelecom Announces Its Q3, 9M IFRS Financial and Operating Results
OREANDA-NEWS. Rostelecom OJSC (MOEX: RTKM, RTKMP; OTCQX: ROSYY), Russia's national telecommunications operator, announces its consolidated financial results for the third quarter and the first nine months of 2013 prepared in accordance with IFRS1.
NINE MONTHS FINANCIAL HIGHLIGHTS
When comparing year-on-year performance, it is important to note the presence of substantial one-off revenues (“one-offs”) during the first nine months of 2012.
Consolidated revenues up 2% year-on-year to RUB 232.3 billion (excluding the one-off revenues in the first quarter of 2012). Revenues decreased by 3% year-on-year after factoring in one-off revenues;
OIBDA2 amounted to RUB 87.1 billion with an OIBDA margin of 37.5%, higher than the OIBDA margin for full-year 2012 (36.9%) and the second quarter of 2013 (37.4%);
Net income of RUB 24.2 billion, reflecting the absence of Rostelecom's share in Svyazinvest's3 net income;
Capital expenditure4 of RUB 45.8 billion (19.7% of revenue);
Net debt5 of RUB 208.3 billion as of 30 September, 2013 with a net debt/OIBDA6 ratio of 1.9x;
Net cash from operating activities of RUB 63.0 billion with free cash flow of RUB 17.1 billion.
THIRD QUARTER FINANCIAL HIGHLIGHTS
Consolidated revenues up 2% year-on-year to RUB 78.2 billion;
OIBDA of RUB 29.4 billion with an OIBDA margin of 37.6%, compared to 36.9% for the full year 2012, and 37.4% for the second quarter of 2013;
Net income up 12% year-on-year to RUB 10.5 billion;
Capital expenditure of RUB 13.9 billion (17.8% of revenue).
Sergey Kalugin, Rostelecom's President, commented: “Efforts taken to strengthen our market positions in key segments and improve on our internal efficiency led to positive results during the quarter. Not only do we continue to grow our broadband and pay-TV subscriber base, but we also increased our net income during the quarter. Furthermore, all the necessary corporate procedures associated with the reogranisation of Rostelecom have been successfully executed, with Svyazinvest and a range of subsidiaries now merged with Rostelecom. The Company now has a simplified shareholder base, cross-ownership has been eliminated and the state, together with the Bank for Development and Foreign Economic Affairs, hold direct ownership of more than 51% of Rostelecom's voting shares.
All of these developments have contributed to significant levels interest in Rostelecom from high-profile investors, including the Russian Direct Investment Fund and Deutsche Bank. A further important step in the optimisation of our shareholder structure was taken through the recent repurchase of a significant minority shareholding.”
Kai-Uwe Mehlhorn, Vice-President - Chief Financial Officer, added: “The Company's third quarter results are testament to the fact that it continues to actively develop its broadband and pay-TV segments and is successfully replacing stagnating income from fixed telephony with income from these promising segments. The focus on operating efficiency, which has seen us optimise relationships with vendors and contractors, is already having a positive effect on our financial performance, with improvements to procurement efficiency enabling savings of over RUB 12 billion over the past two reporting quarters.”
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