About the company
Rostelecom (“the Group” or “the Company”) is a major Russian and Europe telecommunications provider, with a presence in every industry`s segment across Russia regions. On the basis of its advanced telecommunications network consisting of approximately 500,000 km of backbone infrastructure plus last mile connection and a fibre to the building or fibre to the home (“FTTx”) network Rostelecom is providing access to 34 million households. The Company organizes the business by two primary customer groups – residential customers (i.e., individuals) and corporate customers (i.e., legal entities, Russian Government agencies and entities under direct and indirect control of the Russian Government, telecommunications carriers and resellers that purchase our interconnection services), which represented 51% and 49% of total revenue, respectively, for the year ended December 31, 2013.
The business is centered on providing integrated telecom solutions including local and intra-zone telephone services, international long-distance (“ILD”) and domestic long-distance (“DLD”) services, data services, broadband Internet access services and Pay-TV services to broad base of customers in all regions of Russia. Rostelecom had 26.5 million local fixed-line voice subscribers, 10.6 million fixed-line broadband subscribers and 7.5 million Pay-TV subscribers at the end of 2013.
At the end of 2013 the Company also delivered mobile services to 14.8 mln of clients. That said, in December 2013 the Board of Directors approved contribution of all Rostelecom`s mobile assets into a joint venture with Tele2 Russia Holding AB which will lead to termination of delivering mobile services from the Company in due course.
The Group generated RUB 325.7 billion of consolidated revenues, RUB 113.3 billion of OIBDA (34.8% of revenues) and RUB 24.3 billion of net income for the twelve months ended December 31, 2013. Company’s ordinary shares were included in the Large Cap Segment of the MSCI Global Standard Indices and MSCI Russia Index, effective from September 1, 2011. The Company’s weight in MSCI Russia amounted to 0.98% as of April 16, 2014.
Rostelecom was assigned a ‘BBB-’ and ‘BB+’ international credit ratings by Fitch Ratings and Standard& Poor’s respectively, both with a ‘Stable’ outlook.