Rostelecom slows down

The revenues of Rostelecom from projects in the public sector slumped by 30% in H1 2013 compared with last year’s result. Over the same period the revenues in the wholesale and carrier segment decreased by 4%, while those from telecommunications services for individuals dropped by 1% y-o-y. There were just some of the results presented in the latest financial report of the operator.

In H1 2013 the total revenues of Rostelecom decreased by 5% compared to the previous year (from RUB 161bn to RUB 154.1bn). The net profit of the company decreased by 31% from RUB 20bn to RUB 13.7bn. Besides the slump in the public administration sector, other reason for such a result might be a decline in the mobile segment, thich dropped by 5% y-o-y to RUB 19.44bn.

Revenue structure (RUB bn) by customer segments, H1 2012-H1 2013
Rostelecom, 2013
H1 2012 H1 2013 % change y-o-y
Residential customers 81.8 80.9 -1%
Corporate customers 33.5 34.7 4%
Government customers 28.4 20.2 -29%
Operators 18.0 18.3 1%
Total revenue 161.7 154.1 -5%
Revenue structure (RUB bn) of Rostelecom by type of services, H1 2012-H1 2013
Rostelecom, 2013
H1 2012 H1 2013 % change y-o-y
Local telephony services 43.3 42.7 0.0
Intra-zone telephony services 9.5 8.3 -0.1
DLD/ILD telephony services 10.5 8.9 -0.2
Interconnection and traffic transit services 10.0 11.1 0.1
Broadband Internet 24.5 26.7 0.1
Pay TV 4.2 5.5 0.3
Mobile communication services 20.5 19.4 -0.1
Data services (VPN, data centres, wholesale internet sales) 10.0 10.9 0.1
Rent of channels 5.8 5.2 -0.1
Other (including one-offs earnings in Q1 2012) 23.3 15.5 -0.3
Total revenue 161.7 154.1 -0.1