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ROSTELECOM PJSC (RKMD)
ROSTELECOM PJSC: Rostelecom announces rebranding, unveils new digital
services
26-Sep-2018 / 10:02 MSK
Dissemination of a Regulatory Announcement that contains inside information
according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
ROSTELECOM ANNOUNCES REBRANDING,
UNVEILS NEW DIGITAL SERVICES
A NEW BRAND EMPHASIZES ROSTELECOM'S CONTINUED EVOLUTION
INTO AN INNOVATIVE DIGITAL COMPANY
Moscow, Russia - September 26, 2018 - Rostelecom PJSC (MOEX: RTKM, RTKMP;
OTCQX: ROSYY), Russia's national telecommunications operator, announces its
repositioning and rebranding, introduces new digital services and tariff
options to reflect market trends and the Company's strategic priorities.
Strategy 2022 sets out Rostelecom's digital transformation from a telecoms
operator into an IT-company, servicing retail, business clients and the
Russian Government to embrace new opportunities in the digital world.
The success of Rostelecom's digital transformation is reflected by the
contribution of more than half of the Company's revenue by digital and
content services, Internet access, pay TV, cloud-based solutions, data
centers, cybersecurity and other services. These segments are driving
Rostelecom's growth and the Company is also undergoing significant
organizational changes internally to reflect this. Rostelecom is
establishing new teams and centers of excellence created to boost key focus
areas, such as biometry, cybersecurity, IoT, smart home, etc.
Mikhail Oseevsky, CEO & President of Rostelecom, commented: "What really
matters today is not the technologies, but their application, and the ways
they can change lifestyle and bring comfort and safety. We are no longer
focused on new subscriptions, but are embracing entire life areas, creating
ecosystems, where every client will find the solution they need."
To reflect the new positioning, Rostelecom introduced a number of brand new
services and tariffs for a number of segments. Vladimir Kirienko, First Vice
President of Rostelecom, commented: "We do our best to anticipate our
clients' aspirations and needs in every area of their lives, to continue
delivering best-in-class services. With Rostelecom's technological solutions
businesses grow more efficiently, and customers' day-to-day life becomes
more comfortable and safer. The portfolio of brand-new products and tariffs
now offers better flexibility - tailored services can be reassembled like
pieces in a jigsaw puzzle to meet the particular needs of a family or a
company".
A multimedia platform Wink has been added to the ecosystem of products for
private clients, marking a significant evolution of IPTV, which is today
popular among millions of families across Russia. Wink is a platform that
brings together a mobile app, a website and a Smart TV app, combining more
than 200 TV channels, 12,000 movies and series, as well as a full range of
additional functions, from pausing and rewinding to providing a
parental-control feature. In future, clients will be able to enjoy a much
broader functionality of the service.
Online education, which is one of the key elements within the ecosystem, is
represented by the "Rostelecom Lyceum" platform, which was launched to
enhance quality, safety and accessibility of supplementary school education,
and features specially selected content. On the platform, a personal
supervisor can tailor student programmes and assist parents with tracking
student performance and manage their schedules.
New products and services in the tariff line are conveniently named to
ensure easier choice based on families' needs - "For Internet", "For peace
of mind", "For new experiences", "For everyone", "Gaming".
On 1 October, Rostelecom will launch an updated platform to assist
entrepreneurs "Be in the black", that allows businesses enjoy a high-speed
internet access and mobile communication, with a 50% discount on additional
services, such as Virtual PBX, SMS advertising, Wi-Fi, video monitoring or
TV for business.
These and other changes signalled that Rostelecom needs a new, dynamic and
evolving positioning and branding. Elena Dobrohotova, Marketing Director of
Rostelecom, commented: "The mission of our new brand is to reflect
fundamental change in our approach to products and clients. We no longer
focus on technologies, addressing people's needs have become our top
priority. That is why their experience and emotions are core to us. The
diversity of graphic solutions and colours echoes the wide range of
opportunities we are creating for people, businesses and the country. We
wish to emphasize that on this new digital journey we have embarked on, we
are looking to become a truly modern company with a stronger brand
engagement with each of our customers, from gamers to government bodies".
The new brand identity was developed by a partnership of Bootleg (BBDO
group) and Saffron Brand Consultants.
Ekaterina Shenets, managing director of Bootleg, commented: "The changes
within the Company were a driving force for fundamental changes in the way
Rostelecom connects with clients and partners. We were excited to be a part
of the team, responsible for the development of Rostelecom's new style and
message. Thanks to joint efforts in the marketing department, Saffron and
Bootleg, the national Company now has a unique, powerful image and authentic
voice to continue creating real value and evolving its digital footprint
further on".
The first marketing campaign in new corporate style will be launched on 1
October 2018.
* * *
Rostelecom [1] is one of the largest national telecommunications operators
in Russia and Europe. The Company operates in all segments of the
telecommunications market and covers millions of households in Russia.
Rostelecom is an undisputable leader of the broadband and pay-TV markets in
Russia with over 13.0 million fixed-line broadband subscribers and over 10
million pay-TV subscribers, over 5.1 million of which are subscribed to
Rostelecom's IPTV services.
In the first half of 2018, the Group generated RUB 153.6 billion of
revenues, RUB 46.9 billion of OIBDA (30.5% of revenue) and RUB 7.0 billion
of net income.
The Group is a market leader in providing telecommunications services to
government bodies and corporates of all levels.
Rostelecom is an important innovator that provides solutions in the field of
E-Government, cloud computing, healthcare, education, security and housing &
utility services.
The Group's stable financial position confirmed by its credit ratings.
Rostelecom was assigned 'BBB-' and 'BB+' international credit ratings by
Fitch Ratings and Standard&Poor's respectively, and AA(RU) by ACRA.
***
Certain statements in this press release are forward-looking statements
within the meaning of the U.S. federal securities laws and intended to be
covered by the safe harbours created thereby.
Those forward-looking statements include, but are not limited to:
? Assessment of PAO Rostelecom's (the Company) future operating and
financial results as well as forecasts of the present value of future cash
flows and related factors;
? The Company's plans to take ownership stakes in other organisations;
? the Company's anticipated capital expenditures and plans to construct
and modernize its network;
? the Company's expectations as to the growth in demand for its services,
plans relating to the expansion of the range of its services and their
pricing;
? the Company's plans with respect to improving its corporate governance
practices;
? the Company's expectations as to its position in the telecommunications
market and forecasts on the development of the market segments within
which the Company operates;
? economic outlook and industry trends;
? the Company's expectations as to the regulation of the Russian
telecommunications industry and assessment of impact of regulatory
initiatives on the Company's activity;
? other statements regarding matters that are not historical facts.
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. These risks,
uncertainties and other factors include:
? risks relating to changes in political, economic and social conditions
in Russia as well as changes in global economic conditions;
? risks relating to Russian legislation, regulation and taxation,
including laws, regulations, decrees and decisions governing the Russian
telecommunications industry, securities industry as well as currency and
exchange controls relating to Russian entities and their official
interpretation by regulatory bodies;
? risks relating to the Company, including the achievement of the
anticipated results, levels of profitability and growth, ability to create
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