ROSTELECOM PJSC (RKMD)
ROSTELECOM PJSC: Rostelecom acquires a telecom operator in St. Petersburg
25-Jul-2019 / 16:46 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 acquires a telecom operator in St. Petersburg
Moscow, Russia - July 25, 2019 - Rostelecom PJSC (MOEX: RTKM, RTKMP; OTCQX:
ROSYY), the largest digital service provider in Russia, today announces that
its subsidiary Bashinformsvyaz ("Bashtel") has signed an agreement to
acquire 100% stake in Prometey LLC ("the Company"), a communications
operator in St. Petersburg and the Leningrad region.
Prometey has been providing services to corporate and state clients, as well
as to individual customers since 2004.
The company operates its own fibre optics network which spans St. Petersburg
and the Leningrad region, where it also possesses a strong market share in
the B2B and B2G segments. Prometey has implemented a number of large-scale
projects in both in St. Petersburg and the broader region, including
projects carried out as part of the "Safe City" initiative. It has
collaborated closely with the Government of St. Petersburg to assist with
the set-up and maintenance of the Regional Automated Centralised
Notification system. The provider's B2B/G client base consists of more than
1,600 organisations, most of which are business centres and commercial
properties.
Over the last 3 years, Prometey has strengthened its position in B2C,
securing its leadership in providing Internet and cable TV services for new
build properties in the Murino area of the Leningrad region, serving about
20,000 households.
In 2018, Prometey's turnover amounted to RUB 430 million.
Prometey deal is in line with a strategic priority to develop Rostelecom's
digital ecosystem and client services.
Anna Shumeyko, Senior Vice President and Chief of Staff of the Presidential
executive office of Rostelecom, commented: "The acquisition will broaden the
range of opportunities for Rostelecom to implement its innovative Smart City
projects, and we will upsell Prometey's clients with a wide range of
services for new-build properties through our multimedia platform Wink. The
deal will also enable us to further promote our "Smart Home" and packaged
mobile communications offerings across Prometey's customer base."
* * *
PJSC Rostelecom [1] is the largest digital service provider, operating in
all segments of the telecommunications market in Russia, it serves millions
of households, the state and private enterprises across the country.
Rostelecom is Russia's undisputed market leader, providing high-speed
Internet access to over 13 million families and pay-TV services to more than
10.2 million families, over 5.4 million of which are subscribed to
Rostelecom's IPTV services on a national level. Rostelecom's MVNO base is
over 1.3 million users. The Company develops digital solutions for smart
homes, online education, telemedicine and other services.
In the first three months of 2019, the Group generated RUB 78.7 billion of
revenues, RUB 26.4 billion of OIBDA (33.5% of revenue) and RUB 5.6 billion
of net income.
The Group is the leading provider of telecommunications services to
government bodies and corporates of all levels with more than 1.0 million
legal entities currently using Rostelecom's high-speed Internet services and
VPN.
Rostelecom is a key strategic innovator that provides solutions in the
following fields: E-Government, cybersecurity, data-centers and cloud
computing, biometry, healthcare, education and housing & utility services.
The Group's stable financial position is confirmed by its credit ratings.
Rostelecom has been 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
and meet demand for the Company's services including their promotions, and
the ability of the Company to remain competitive in a liberalized
telecommunications market;
? technological risks associated with the functioning and development of
the telecommunications infrastructure, technological innovations as well
as the convergence of technologies;
? other risks and uncertainties. For a more detailed discussion of these
and other factors, see the Company's Annual Report and the Company's other
public filings.
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 upon the
annual report publication or to reflect the occurrence of unanticipated
events, except as may be required under applicable laws.
ISIN: US7785291078
Category Code: ACQ
TIDM: RKMD
LEI Code: 2534001D752JPNM0H170
Sequence No.: 14687
EQS News ID: 847065
End of Announcement EQS News Service
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(END) Dow Jones Newswires
July 25, 2019 09:47 ET (13:47 GMT)
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