MOSCOW--(BUSINESS WIRE)--
ROSTELECOM ANNOUNCES ITS IFRS FINANCIAL AND OPERATING RESULTS FOR THE FOURTH QUARTER AND FULL YEAR OF 2015
Free Cash Flow rose to RUB 22.0 billion with net profit growing by 9% y-o-y to RUB 14.4 billion
Moscow, Russia – March 14, 2016 - Rostelecom PJSC (MOEX: RTKM, RTKMP; OTCQX: ROSYY), Russia’s national telecommunications operator, today announces its consolidated financial results for the fourth quarter and the full year of 2015 prepared in accordance with IFRS1.
KEY ACHIEVEMENTS
- Revenue, OIBDA margin and CAPEX to revenue ratio are in-line with Management’s guidance for 2015;
- The digital segment’s2 contribution to total revenue exceeded 40%;
- Total fibre optic network coverage reached 30.7 million households by the end of 2015;
- Net profit increased by 9% year-on-year to RUB 14.4 billion;
- FCF3 amounted to RUB 22.0 billion in 2015.
FULL YEAR 2015 FINANCIAL HIGHLIGHTS
- Revenue of RUB 297.4 billion compared to RUB 298.9 billion in 2014;
- OIBDA amounted to RUB 100.8 billion compared to RUB 102.5 billion in 2014;
- OIBDA margin of 33.9% compared to 34.3% in 2014;
- Net profit increased by 9% year-on-year to RUB 14.4 billion;
- CAPEX increased by 17% to RUB 62.7 billion (21.1% of revenue) from RUB 53.8 billion (18.0% of revenue) in 2014; CAPEX excluding the “Bridging the Digital Divide” project amounted to RUB 59.5 billion (20% of revenue);
- FCF amounted to RUB 22.0 billion compared to RUB 27.3 billion in 2014.
Sergei Kalugin, President of Rostelecom, commented:
Rostelecom made good progress with the delivery of its strategy in 2015. Having reached nearly 31 million households passed, Rostelecom is nearing the conversion of its last mile network to fibre optic, which means that the bulk of our CAPEX commitment to this capital-intensive project is almost fulfilled. We also launched our first OTT solution, which allows users to access our content proposition, irrespective of the internet provider they use. Furthermore, the introduction of our new customer care standards have led to remarkable improvements in the overall quality of our services.
Last year, Rostelecom’s Board of Directors approved some amendments to our Group’s strategy, which identified our most promising and fast-growing segments. We are determined to build our presence in these segments, which include data centres, cloud services, OTT video, geodata and IIoT.
In December, we presented to the investment community our achievements to date and our strategic business plan that will take us to 2020. This is all part of our drive to improve Rostelecom’s investment case, which has been further strengthened by the adoption of a new dividend policy, which sets out the FCF pay-out ratio at no less than 75% but not less than RUB 45 billion cumulatively for three years.
We continue to develop our business in line with market demands and customer needs, offering new digital services and products. 2016 will see the nationwide launch of a 4-Play offering. In addition, Rostelecom will undergo a transformation, which will include the implementation of innovative management tools as well as the development of its own production system.
Our focus on enhancing internal efficiencies, implementing innovative solutions in business development and building our digital offering is making Rostelecom a truly customer-focused service company. These improvements will contribute to the growth of the Company’s fundamental value and it maximises free cash flow, the bulk of which Rostelecom plans to distribute as dividends.
A copy of the press release is available on the “Investor Relations” section of Rostelecom’s website at http://www.rostelecom.ru/en/ir/results_and_presentations/financials/IFRS/2015/ .
OTHER INFORMATION: CONFERENCE CALL
Rostelecom’s management will hold a conference call and webcast today at 6.00PM (Moscow), 4.00PM (CET), 3.00 PM (UK) and 10.00 AM (NYT). To participate in the conference call, please dial:
Russia: + 7 495 213 0978
UK/ International: + 44 (0) 20 3427 1919
USA: + 1 646 254 3366
Access code: 6437056
A webcast of the conference call will be available at http://www.audio-webcast.com/cgi-bin/visitors.ssp?fn=visitor&id=3335.
A replay of the conference call will be available on the Company’s website: http://www.rostelecom.ru/en/ir/results_and_presentations/financials/IFRS/ in due course.
* * *
Certain statements in this press release are forward-looking statements within the meaning of the U.S. federal securities laws and are intended to be covered by the safe harbors created thereby.
Such forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from those expressed or implied by these forward-looking statements.
Many of these factors are beyond the Company’s ability to control or predict. Given these and other uncertainties, readers are cautioned not to place undue reliance on any of the forward-looking statements contained herein or otherwise. The Company does not undertake any obligation to release publicly any revisions to these forward-looking statements (which are made as of the date hereof) to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as may be required under applicable laws.
1 International financial reporting standards
2 The digital segment comprises broadband, pay-TV, VPN, VAS and cloud services
3 Here and below, FCF is calculated as free cash flow from operating activity minus CAPEX, plus proceeds from selling fixed assets and intangible assets