Full year 2013 highlights
When analysing the full-year 2013 results, it is important to consider the following:
The consolidation of the results of OJSC Svyazinvest and its subsidiaries
The restatement of historic data from previous periods
The separation of results from continuing operations and discontinued operations based on the decision to create a JV with Tele2 Russia
The Group’s continuing operations results are presented as if the mobile business was deconsolidated on the reporting date. Intergroup transactions between continuing and discontinued operations are not excluded from the continuing operations, but are presented as turnover from third parties. The results from the discontinued operations present the sum of the results of the mobile business operations and the losses from eliminating intergroup operations. A full transcript of the components can be found in Note 35 of the Group’s consolidated IFRS financial statements.
The presence of significant one-off revenues in the results for 2012
- Consolidated revenues up 1% year-on-year to RUB 325.7 billion (excluding one-off revenues in the first quarter of 2012). Revenues decreased by 2% year-on-year after factoring in one-off revenues;
- OIBDA1 amounted to RUB 113.3 billion;
- OIBDA margin of 34.8% compared to 36.2% in 2012, reflecting:
- the absence of one-off revenues in 2013;
- the effect of merging Svyazinvest and its subsidiaries as part of the second stage of the Company’s reorganisation;
- the increasing share of revenues by fast-growing segments, which operate at a lower margin than traditional segments.
- Net income of RUB 24.1 billion. Net income according to Russian Accounting Standards (RAS), which is used to calculate dividends for preferred shares, amounted to RUB 35.3 billion;
- Capital expenditure2 of RUB 68.5 billion (21.0% of revenue);
- Net debt3 of RUB 217.3 billion as at 31 December, 2013 with a net debt/OIBDA ratio of 1.9x;
- Net cash from operating activities of RUB 85.7 billion with Free Cash Flow (FCF)4 of RUB 17.2 billion.
1 OIBDA is calculated as the sum of Operating profit and Depreciation, amortization and impairment losses.
2 Capital expenditure (“CAPEX”) comprises cash spent on fixed assets and intangible assets.
3 Net debt is calculated as total debt less cash, cash equivalents and short-term investments.
4 Free Cash Flow = net cash provided by operating activities less CAPEX.