ROSTELECOM PJSC (RKMD)
ROSTELECOM PJSC: VTB and Rostelecom join forces to create big data solutions
20-Nov-2019 / 13:11 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.
VTB and Rostelecom join forces to create big data solutions
A new big data platform will enable businesses to improve client services
Moscow, Russia - November 20, 2019 - Rostelecom PJSC (MOEX: RTKM, RTKMP;
OTCQX: ROSYY), announces that it has signed a strategic partnership
memorandum with VTB to facilitate cooperation in the area of big data. The
document was signed by the President and Chairman of VTB Bank Andrey Kostin
and Mikhail Oseevsky, President of Rostelecom, at the 11th annual VTB
Capital "RUSSIA CALLING!" investment forum.
Rostelecom and VTB will set up a joint venture (JV) to focus on creating new
products to meet customers' needs based on big data analysis and processing,
including with AI technologies. The provisional investment by both parties
will amount to RUB 1 billion.
The JV will be based on a technology platform available to clients operating
in the telecommunications, financial services, retail and development
sectors as well as state organisations. All data sets will be verified for
legality and quality prior to use and they will be depersonalised and coded.
Data will be stored by companies participating in the project.
Andrey Kostin, President and Chairman of VTB Bank, commented:
"VTB Bank is pleased with the prospect of expanding our cooperation with
Rostelecom in high-technology projects. The new platform will help structure
large sets of big data accumulated in various economy sectors and use them
to create digital products that will meet markets' needs and increase
efficiencies. I believe that better data quality and accessibility are
critical success factors for the development of Russia's digital economy."
Mikhail Oseevskiy, President of Rostelecom, commented:
"Rostelecom sees the development of AI technologies for big data analysis as
our top priority area. We have already made good progress on this front with
a number of our own proprietary tools and partner technologies that are
helping us to rethink and improve the user experience. By joining our
forces, Rostelecom and VTB will be able empower both the business and state
sectors with digital solutions that will significantly increase their
productivity."
The JV will serve small and medium-sized enterprises, as well as large
corporations, and state companies. The new platform will integrate systems
for big data processing, storage, analysis and exchange. The AI-optimized
platform will also help process depersonalised and coded data thanks to its
data stock exchange features, while also managing companies' advertising
campaigns using intelligence systems.
* * *
VTB Bank [1] and its subsidiaries form a leading Russian financial group -
VTB Group, offering a wide range of banking services and products in Russia,
CIS, Western Europe, Asia and Africa.
VTB Group is a global provider of financial services, operating across all
key areas of the financial markets. Its subsidiary financial organisations
offer insurance, leasing, factoring, and other financial services.
As of 30 June 2019, the Group was the second largest financial group in
Russia by assets (RUB 15.055 trillion) and by customer accounts (RUB 10.738
trillion).
The Government of the Russian Federation is VTB Group's main shareholder and
owns 60.9% of the voting shares.
* * *
PJSC Rostelecom [2] 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 13.1 million users and pay-TV services to more than
10.3 million clients, over 5.5 million of which are subscribed to
Rostelecom's IPTV services on a national level.
In the nine months of 2019, the Group generated RUB 242.6 billion of
revenues, RUB 81.4 billion of OIBDA (33.6% of revenue) and RUB 16.4 billion
of net income.
The Group is the leading provider of telecommunications services to
government bodies and corporates of all levels.
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: MSCL
TIDM: RKMD
LEI Code: 2534001D752JPNM0H170
Sequence No.: 30337
EQS News ID: 917329
End of Announcement EQS News Service
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(END) Dow Jones Newswires
November 20, 2019 05:11 ET (10:11 GMT)
