Rostelecom reported RUB 143.6bn sales revenue in H1 2011

Rostelecom, Russian incumbent fixed-line telecom operator, reported sales revenues of RUB 143.6bn (€3.59bn) in H1 2011, which is an increase of 7% in comparison to the same period of the previous year. The total number of Rostelecom’s broadband internet subscribers increased in the second quarter to 7.7 million, posting a 31% year-on-year growth. Meanwhile, the operator’s revenues from the provision of broadband services went up by 26% on a yearly basis, becoming one of the key drivers of the company’s sales revenue growth.

Before March 2011, Rostelecom provided mainly wholesale telecommunications services in Russia. However, in Q1 2011, the company completed a merger with the other eight state owned regional fixed-line telephony providers and became the fourth national telecom operator with a dominant presence in the Russian end user markets of fixed telephony and broadband internet.

In February 2011, Rostelecom acquired NTK, a Russian leading provider of pay TV services, adding more than 4.6 million of pay TV customers to its client portfolio.

The goal of the company is to increase its annual sales revenues to RUB 430bn (€9.8bn) by 2015, gaining a 50% share in the Russian fixed broadband internet market in terms of subscribers and a 30% share in the total number of pay TV users in the country.

Rostelecom: revenue breakdown by type of services (RUB bn), 2008 - H1 2011

200820092010H1 2010H1 2011
Telephony services 165.9 162.0 159.9 68.2 67.5
- local telephony 76.4 79.6 85.3 42.0 44.4
- intra zone telephony 27.1 25.2 23.7 11.8 10.7
- ILD /DLD 47.0 42.9 37.9 14.4 12.4
- traffic transition services and interconnect 15.4 14.3 13.0 10.1 10.7
Fixed broadband internet services 22.8 32.7 39.6 19.3 23.4
Pay TV services 0.7 0.9 1.1 0.5 3.1
Mobile telephony services 29.0 28.3 32.0 15.7 15.8
Line rental services 12.9 12.2 11.0 5.7 4.9
Data transmission services 12.4 13.2 16.9 7.9 8.6
Other services 15.3 15.4 15.2 7.3 9.7

Source: Rostelecom, 2011