DJ ROSTELECOM PJSC: Rostelecom announces its IFRS financial and operating results for the second quarter and half year 2020
ROSTELECOM PJSC (RKMD)
ROSTELECOM PJSC: Rostelecom announces its IFRS financial and operating
results for the second quarter and half year 2020
05-Aug-2020 / 09:48 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 its ifrs financial and operating results
for the second quarter and FIRST half year of 2020
Q2, 2020 Revenue growth of 13%; 15% increase in OIBDA[1]; net revenue up 32%
Moscow, Russia - August 5, 2020 - Rostelecom PJSC (MOEX: RTKM, RTKMP; OTCQX:
ROSYY), the largest digital integrated service provider in Russia, today
announces its consolidated financial results for the second quarter and
first half year of 2020 prepared in accordance with IFRS[2].
In accordance with the accounting policy of the Group, the acquisition of
Tele2 Russia has been recognized as a business combination under common
control. According to this method the merger of businesses arising from a
transfer of entity stakes under common control of the Group's shareholders,
is presented as if the merger took place in the earliest period of the
statements, or, if later, effective from the date that common control was
put into effect; for this purpose comparatives are revised. Rostelecom's
consolidated financial statements for 2019 have therefore been revised to
incorporate Tele2 Russia's performance as if the acquisition had been
completed on 1 January 2019.
Q2 2020 KEY ACHIEVEMENTS
- Consolidated revenue grew by 13% year-on-year;
- Mobile services grew by 16% year-on-year;
- Sales in digital services increased by 68% year-on-year;
- OIBDA grew by 15%;
- Net profit increased by 32% year-on-year.
Q2 2020 FINANCIAL HIGHLIGHTS
- Revenue grew by 13% to RUB 127.3 billion compared to the second quarter
of 2019
- OIBDA up by 15% to RUB 48.8 billion;
- OIBDA margin grew by 0.8 p.p. to 38.3%;
- Net profit increased by 32% to RUB 7.7 billion;
- CAPEX[3] stood at RUB 24.7 billion (19.4% of revenue) from RUB 18.3
billion (16.2% of revenue) in the second quarter of 2019;
- FCF[4] stood at RUB (8.8) billion compared to RUB 14.6 billion in the
second quarter of 2019;
- Net debt[5] increased by 22% since the beginning of the year to RUB
407.1 billion, resulting in a Net Debt/OIBDA ratio of 2.2x.
Key figures for 2Q 2020, RUB mln
RUB million 2Q 2020 2Q 2019 change, y-o-y
Revenue 127,279 113,012 13%
OIBDA 48,800 42,476 15%
OIBDA margin % 38.3% 37.6% -
Operating Income 18,557 16,002 16%
Operating margin % 14.6% 14.2% -
Net Income 7,731 5,863 32%
% of revenue 6.1% 5.2% -
Capital Expenditure 24,661 18,290 35%
% of revenue 19.4% 16.2% -
Net debt 407,118 325,010 25%
Net debt/ annualised OIBDA 2.2 2.0 -
FCF (8,832) 14,619 (23,451)
FIRST HALF YEAR 2020 FINANCIAL HIGHLIGHTS
? Revenue increased by 11% to RUB 248.9 billion compared to the first half
of 2019;
? OIBDA increased by 14% year-on-year to RUB 95.9 billion compared to the
first half of 2019;
? OIBDA margin grew by 0.7 p.p. to 38.5% compared to the first half of
2019;
? Net profit increased by 14% to RUB 15.4 billion compared to the first
half of 2019;
? CAPEX excluding state programmes stood at RUB 46.7 billion (18.7% of
revenue) compared to RUB 44.0 billion (19.7% of revenue) in the first half
of 2019;
? FCF was at RUB (14.8) billion compared to RUB (0.9) billion in the first
half of 2019;
? Net debt increased by 22% since the beginning of the year to RUB 407.1
billion, resulting in a Net Debt/OIBDA ratio of 2.2x
Key figures for 1HY 2020, RUB mln
RUB million 6M 2020 6M 2019 change, y-o-y
Revenue 248,892 223,237 11%
OIBDA 95,883 84,341 14%
OIBDA margin % 38.5% 37.8% -
Operating Income 37,504 32,766 14%
Operating margin % 15.1% 14.7% -
Net Income 15,443 13,530 14%
% of revenue 6.2% 6.1% -
Capital Expenditure 46,658 44,039 6%
% of revenue 18.7% 19.7% -
Net debt 407,118 325,010 25%
Net debt/ annualised OIBDA 2.2 2.0 -
FCF (14,778) (899) (13,879)
Mikhail Oseevskiy, President of Rostelecom, commented:
"Our strong financial and operating results for the second quarter of this
year evidence our resilience and successful passage through a difficult
spring and early summer period, where the general population and business as
a whole have faced unprecedented challenges relating to quarantine measures,
the widespread transition to online and severe economic uncertainty.
"The strategic direction provided by Rostelecom's digital transformation has
enabled us to embed digital services into our DNA. Our market offer is
therefore sustainable and has significant potential based on the need to
meet the demands of a new modern reality.
"Completing the consolidation of Tele2 Russia's mobile business was timely.
The transaction has made us a truly integrated digital provider, which is a
unique position to be in both in terms of the breadth of services assembled
under the Rostelecom brand and the opportunities open to Rostelecom to serve
the needs of clients in the 21st Century with new digital services.
"I therefore consider our second quarter achievements in terms of growth in
revenue, OIBDA and net profit in the second quarter by 13%, 15% and 32%
respectively, as a great achievement by the entire Rostelecom team. We are
seeing the first signs of recovery in economic activity for our clients,
many of whom are projecting a return to growth in the coming quarters. This
will lead to an expansion of work being carried out to digitize various
industries and aspects of people's daily lives. By the year-end we plan to
go to the board of directors and present to the market an updated strategy
that will set more precise goals, taking into account the inclusion of Tele2
Russia as a fully consolidated member of the group, and illustrate new
initiatives that can create additional value for shareholders. "
Vladimir Kirienko, First Vice-President of Rostelecom, said:
"In the second quarter, top-line growth accelerated to 13%. The double-digit
growth rates were achieved thanks to the expansion of the mobile segment and
the rapid growth of digital services. Some service categories, such as,
information security services, continue to show exponential growth: in the
reporting quarter, revenues in this area grew 2.5 times, in part due to the
active development of mass cybersecurity services.
"Our cloud services, data centre services, smart solutions in the field of
urban infrastructure management and state electronic services remain in
demand. The popularity of the Rostelecom Key solution and converged packages
is also growing. Rostelecom's solid growth trajectory is the fruit of hard
work from a professional team that has built high levels of trust from our
customers. Customers have appreciated how quickly Rostelecom has been able
to adapt to changes and put customers first by offering convenient and
useful services in a timely manner. We have managed to support our clients
in recent months both by adapting the terms of service provided within the
framework of current contracts and by creating new popular digital services.
We have as an example developed a new product that remotely screens the
temperature of employees using thermal imaging, our products typically
integrate themselves seamlessly into clients' existing corporate systems.
This service has already been used by a number of companies such as ALROSA
and LUKOIL. Another unique digital solution recently offered to the market
is "Retail Hub", a product that uses algorithms and AI to enable retail
chains to update information on electronic displays and to help focus the
attention of buyers on the right products online, thereby expanding the
range of purchases and increasing the average ticket. Our Tele2 colleagues
have also gone to great lengths to provide subscribers with a large range of
convenient remote services and remote ways of connecting to them. Our main
priority is to remain close to clients, surround them with important and
useful services, while remaining reliable and trusted partners when it comes
to meeting their digital needs both in the present and future.
Sergey Anokhin, Senior Vice-President and Chief Financial Officer, added:
"We have comfortably made it through the first half of this year in terms of
our financial performance and we have continued to implement our strategy.
However, despite the noticeable relaxation of quarantine restrictions and
the first signs of recovery in economic activity, there remains significant
uncertainty about the future development of the pandemic and macroeconomic
indicators. Based on this, the management team maintains a conservative view
when it comes to forecasting growth rates for 2020. We expect an increase in
consolidated revenue of at least 5%, an increase in OIBDA of at least 5%;
and we expect to keep ?APEX within 100-110 billion rubles excluding state
programmes."
KEY OPERATING HIGHLIGHTS
Fixed-line business
Number of 2Q 2020 2Q change, y-o-y 1Q 2020 change,
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DJ ROSTELECOM PJSC: Rostelecom announces its IFRS -2-
subscribers 2019 y-o-y
(million):
Internet access 13.4 13.0 3% 13.2 1%
B2C: Broadband 12.3 12.0 2.5% 12.2 1%
B2B: Broadband 1.1 1.0 7% 1.1 2%
+ VPN
Pay TV 10.7 10.2 4% 10.5 2%
Incl. IPTV 5.8 5.4 7% 5.7 2%
Hosted PBX 0.139 0.084 66%- 0.128 9%
Local telephony 14.9 16.5 (10%) 15.3 (3%)
services
ARPU[6] (RUB): 2Q 2Q 2019 change, 1Q 2020 change, y-o-y
2020 y-o-y
Internet
access
B2C: Broadband 395 398 (1%) 397 (1%)
B2B: Broadband 3,344 3,510 (5%) 3,368 (1%)
+ VPN
Pay TV (B2C) 248 248 (0%) 257 (4%)
Incl. IPTV 309 315 (2%) 319 (3%)
Hosted PBX 1,148 1,175 (2%) 1,118 3%
Blended 545 544 0% 551 (1%)
ARPU[7]
Mobile business
2Q 2020 2Q 2019 change, 1Q 2020 change,
y-o-y y-o-y
Data Traffic, 1,216 733 66% 1,087 12%
incl. MVNO,Pb
Churn, % (9.0%) (8.1%) 0.9 p.p. (9.2%) (0.2 p.p.)
Growth of 28.1% 52.0% (23.9 p.p.) 36.1% (8,0 p.p.)
active mobile
data users , %
1) The total number of Internet subscribers among households grew by 2.5%
to 12.3 million in the second quarter of 2020 compared to the
corresponding period of last year; ARPU was RUB 395.
2) The total number of B2B Internet and VPN subscribers increased by 7%
year-on-year to 1.1 million; ARPU was RUB 3,344.
3) The number of pay-TV subscribers grew by 4% to 10.7 million households
compared to the corresponding period of last year with average ARPU of RUB
248 across B2C;
? The number of IPTV subscribers increased by 7% to 5.8 million, and ARPU
across B2C reached RUB 309;
4) The number of active mobile users grew by 28.1% year-on-year while
mobile data traffic jumped by 66%; at the same time churn of cellular
customer base stood at 9.0%.
5) The number of local telephony subscribers decreased by 10% to 14.9
million.
KEY EVENTS RELATING TO 2Q 2020 AND AFTER THE END OF THE REPORTING PERIOD
Business news
? Rostelecom continues to develop and expand its range of products and
services:
? A new unique AI algorithms and machine learning driven digital product
"Retail Hub" was launched for customers operating in the retail space. The
new solution allows retail chains to smartly control information on
digital displays and analyse customer attention to effectively expand
product lines and ultimately increase the average bill;
? Rostelecom has launched a unique comprehensive solution for
high-precision remote body temperature measurement [1] for offices, which
can be easily integrated with companies' access control systems. A number
of companies including ALROSA [2] and LUKOIL have already tested the new
product;
? As part of Rostelecom's measures to support corporate clients amid the
COVID-19 pandemic, Rostelecom has developed a set of integrated offerings
[3] to support businesses' remote operations, including access to public
and corporate resources, based on broadband, VPN and virtual data centre
services. It also includes reliable and seamless communication based on
Hosted PBX, 8-800 toll free numbers and mobile, as well as remote control
and information security services;
? The Wink platform regular upgrade included:
? IPTV firmware update with an improved interface and TV display
notifications;
? Addition of "Audiobooks" to the platform (in partnership with Litres);
? Launch of voice control functions in partnership Mail.ru Group (voice
assistant Marusya and smart column Kapsula);
? Integration with Tele2 Russia for Wink subscription and digital
payments directly from Tele2 accounts;
? Premiers of exclusive content, including online music streams within
WinkLive featuring Russian signers, WWII short film "Short stay", new
foreign movies and series by English interpreters and voiceover artists
Dmitry Puchkov (known by the pseudonym Goblin), Kurazh Bambey and other.
? Expanded functionality and added options with the Rostelecom Key
solution, to enable:
? integrated home video surveying subscription with the mobile app;
? access to utility meter data management via the app;
? the use of emergency access codes for entrance door control in case
of entryphone or platform malfunctioning;
? the use of the newly launched Key IOS app for entryphone and
driveway access gate control using Apple Watch;
? As part of the convergent solution development, Rostelecom has:
? launched a pilot solution to enable contactless sim card sales via
the ID.Abonent app;
? introduced a Welcome promotion for new MNP users;
? provided access to cloud games as part of mobile services to clients
(in partnership with GFN.RU);
? launched the PC Core platform which allows clients to efficiently
manage traffic consumption;
? Rostelecom signed exclusive agreement with MATCH TV to be able to
provide its OTT clients with additional packages including MATCH, Super
MATCH, KHL HD as part of its B2B TV services;
? Rostelecom continues to grow its digital segment in Q2 2020:
? As part of cybersecurity services:
? Revenues grew by 2.5 times, mainly through the proactive development
of cyber security services for wider customer groups;
? Rostelecom upgraded a number of its cyber security products and
launched a new Red Teaming platform. The platform imitates cyber attacks
taking into account clients' owned IT infrastructure to provide a threat
analysis and assess the efficiency of existing defence measures and
mechanisms. This enables clients to better understand and identify the
gaps in its preparedness for potential attacks;
? Rostelecom continues to grow its cloud services and data processing
centres segments for B2B:
? Sales of the Virtual PBX offering increased by 62% in the second
quarter of 2020;
? Revenues from data centre services grew twofold;
? As part of the Virtual Data Centre offering:
? revenues grew by 169%;
? improved efficiency and user functionality of service management on
the portal, including the optimised generation of reports, access to
reserve copies and a download function for orders;
? launch of Technical Account Manager function for better usability;
? introduction of special COVID-19 related functions, including
StopCoronavirus entry access permits and remote learning and
videoconferencing platforms TrueConf and Vinteo;
? introduction of Customer Data Integration (CDI) on the digital
government platfrom for contractor data synchronisation;
? Rostelecom started the construction of the first Russian Tier IV data
centre in Moscow with a 2,000 rack capacity;
? The newly acquired DataLine has been certified as Cloud Verified
partners of VMware. As part of the development of its products and
services, DataLine has:
? Upgraded its vCloud Director (Cloud-152) and hypervisor cloud
services;
? Added two-factor authorisation and VDI settings mechanisms (powered by
Citrix);
? Upgraded the Kubernetes clusters, located in clients' owned
facilities;
? Added new types of databases as part of the DBaaS service, such as
Cassandra, Redis, RabbitMQ;
? Rostelecom signed a partnership with VTB Group to provide a full range
of data centre solutions, including broadband communication channels and
the provision of server racks and hardware in data centres;
? Sales of Rostelecom home CCTV cameras with cloud storage increased by
30%, which contributed to revenue growth of the Smart Home ecosystem
services by 34%;
? Wink platform active subscriber base grew by 1.7 fold;
? B2C Broadband service revenues in the B2C segment grew by 10%;
? Sales from the Antivirus service increased by 14%;
? Two additional video surveillance solutions were implemented for Yandex,
including the installation of:
? highway cameras connected to Rostelecom platform for Yandex Taxi in
ten Russian cities (using video analytics algorithms), and
? public cameras in 50 Russian cities with live broadcasting on the
Yandex.Weather website;
? Rostelecom signed a number of large contracts to provide communication
services with Russia's State Analytical Centre, Ministry of Labour and
Social Affairs, State Commission for Radio Frequencies, Federal Agency For
Fishery, Yakust Information technologies centre, VTB Bank, Vozrozhdenie
Bank, Home Credit bank and other entities;
? Following the acquisition of DataLine, Rostelecom strengthened its
market position and became a leader in IaaS with an almost a quarter of
the Russian market share, according to TMT Consulting;
? Rostelecom was ranked first among data centre providers in Russia,
according to IKS Consulting. Following the acquisition of DataLine the
Company's market share reached 26% by the number of racks commissioned in
Russia;
? The Company has been ranked [4] at the top of the independent J'son &
Partners Consulting rating by the number of pay-TV B2B clients;
? Rostelecom also leads [5] by the number of video-surveillance cameras
for B2B clients, according to TelecomDaily;
? Rostelecom was ranked [6] number one by the number of hosted PBX clients
according to TMT Consulting Rating
? Rostelecom has been ranked [7] first in the 8-800 toll-free services
according to TMT consulting
? Rostelecom has become a leader in revenues from broadband [8] service
for;
? The Company's Virtual PBX service and "Remote body temperature
measurement" was included in the list of the best solutions by the
International Telecommunication Union;
? Rostelecom's contact centre started to provide access to a direct
communication channel for the clients of Moscow Transport Authority;
? Rostelecom provided video surveillance for the 2020 Russian
constitutional referendum;
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? Revenues from Rostelecom's O2O[8] project increased by 42% in the second
quarter of 2020;
? Rostelecom launched the next generation Transit Europe - Asia [9] (TEA)
project. Round Trip Delay will not surpass 85 m/s from Moscow to
Vladivostok, and 55 m/s from Moscow to Khyagt.
? Tele2 Russia continues to proactively develop its business,
demonstrating agility and flexibility amid the new reality. The Company
has introduced a number of products and remote services, including:
? A special tariff for gamers;
? Contactless sim card delivery in the Moscow region;
? New "My Tele2" product with a user self-registration option;
? Sim-card delivery together with Yandex.Taxi;
? Possibility to raplace sim-cards remotely;
? Simplified sim-card registration on the Public Services Portal;
? Newly launched digital space "Stay at home" for mobile users of all
operators to support them during the coronavirus times;
The high quality of Tele2's services have been recognised by the industry
for the second consecutive year with an "Oscar" for client relationship
management, and the "Silver Mercury" award in six nominations for creative
marketing communications.
Other news
? Rostelecom acquired [10] Forkam, a digitization provider for utility
companies;
? Rostelecom acquired an interest in SIGN.ME [11] to add an e-signature
solution to its digital services ecosystem;
? The Board of Directors has convened the AGM, approved the nominations to
the new Board and recommended that the AGM approves a dividend payment
[12] for 2019 of RUB 5 per share;
? Rostelecom announced a three-year bond [13] with a total nominal value
of RUB 10 billion, at a coupon rate of 6.75% per annum;
? Rostelecom's ordinary shares have been consolidated [14] under a single
ticker RTKM;
? ACRA affirmed [15] AA(RU) to Rostelecom and to its bond issues;
? Fitch Ratings have upgraded Tele2's credit rating to BBB- with a stable
outlook;
? All-Russia People's Front, Roscongress and Rostelecom all launched a
hotline volunteer service WeTogether;
? Rostelecom Contact Centre has opened Coronavirus hotlines for SMP
support and repatriating Russian citizens.
OPERATING REVIEW
Revenue analysis
Revenue structure by services
RUB million 2Q 2020 2Q change 6M 2020 6M Change
2019 2019
Mobile services 42,908 37,131 16% 83,871 72,363 16%
Broadband 22,195 20,606 8% 44,187 41,648 6%
Digital services 15,013 8,922 68% 27,533 16,618 66%
TV services 9,285 9,327 (0%) 18,774 18,658 1%
Wholesale services 18,223 17,590 4% 35,993 34,600 4%
VPN 7,105 6,414 11% 14,130 11,639 21%
Interconnect and 4,475 5,064 (12%) 8,723 10,968 (20%)
traffic transit
services
Infrastructure 4,155 3,726 12% 8,219 7,183 14%
products and
services
Rent of channels 2,488 2,386 4% 4,921 4,810 2%
Fixed telephony 13,675 15,155 (10%) 27,864 31,006 (10%)
Other services 5,980 4,280 40% 10,669 8,345 28%
Total 127,279 113,01 13% 248,892 223,23 11%
2 7
Revenue structure by customer segments
RUB million 2Q 2020 2Q 2019 change 6M 2020 6M 2019 change
Residential 63,719 60,610 5% 126,527 120,641 5%
customers
B2B / State 42,313 33,341 27% 81,302 64,319 26%
clients
Operators 20,184 18,100 12% 39,029 36,324 7%
Other 1,063 962 10% 2,034 1,953 4%
Total 127,279 113,012 13% 248,892 223,237 11%
In the second quarter of 2020, revenue increased by 13% to RUB 127.3
billion, compared to the second quarter of 2019, as a result of the
following factors:
? a 68% increase in revenue from digital services, mainly due to the
larger sales of e-government solutions, promotion of cloud and data centre
services, Smart City projects and cyber security services;
? a 16% increase in revenue from mobile services due to a higher volume of
mobile data consumption and standard voice services;
? a 40% increase in revenue from other services, mainly driven by money
transfer commissions and mobile communication payments, as well as
integrated projects with large state and corporate clients;
? an 8% increase in revenue from broadband services due to a higher number
of subscribers.
During the first six months of 2020, revenue increased by 11% to RUB 248.9
billion, compared to the first six months of 2019, as a result of the
following factors:
? a 16% increase in revenue from mobile services due to a higher volume of
mobile data consumption and standard voice services;
? a 66% increase in revenue from digital services, mainly due to larger
sales of e-government solutions, promotion of cloud and data centre
services, Smart City projects and cyber security services;
? a 60% increase in revenue from broadband services due to a higher number
of subscribers;
? a 21% increase in revenue from VPN services, mainly due to higher demand
from state and corporate clients.
Operating income analysis
Operating expenses structure
RUB million 2Q 2020 2Q 2019 change 6M 2020 6M chang
2019 e
Personnel costs (32,067) (27,986) 15% (64,257) (56,5 14%
41)
Depreciation, (28,821) (25,258) 14% (55,949) (49,1 14%
Amortization and 93)
impairment
losses
Interconnection (23,339) (21,277) 10% (44,628) (41,4 8%
charges 74)
Materials, (9,075) (7,838) 16% (18,114) (16,2 12%
repairs and 33)
maintenance,
utilities
Gain on the 946 781 21% 2,305 1,436 61%
disposal of PPE
and intangible
assets
Impairment loss (1,303) (1,258) 4% (2,466) (2,49 (1%)
of financial 4)
assets measured
at amortized
cost
Other operating 4,655 5,185 (10%) 10,312 9,712 6%
income
Other operating (19,718) (19,359) 2% (38,591) (35,6 8%
expenses 84)
Total operating (108,722 (97,010) 12% (211,388) (190, 11%
expenses ) 471)
In the second quarter of 2020, operating expenses increased by 12% compared
to the corresponding period of 2019 and amounted to RUB 108.7 billion,
largely due to the following factors:
? a 15% increase (of RUB 4.1 bln) in personnel costs, mainly due to an
increase in the number of employees within the digital business segments;
? a 14% increase (of RUB 3.6 bln) in depreciation, amortization and
impairment losses, due to higher payments associated with new objects,
impairment of intangible assets and lease;
? a 10% increase (of RUB 2.1 bln) in interconnection charges, due to
higher traffic caused by the pandemic and the massive transition to remote
working;
? a 16% increase (of RUB 1.2 billion) in materials, mainly due to an
increase in expenditure on personal protective equipment amid pandemic,
and the consolidation of expenses on electricity supplies for Rostelecom's
recently acquired subsidiary DataLine.
During the first six months of 2020, operating expenses increased by 11%
compared to the corresponding period of 2019 and amounted to RUB 211.4
billion, largely due to the following factors:
? a 14% increase (of RUB 7.7 bln) in personnel costs, mainly due to an
increase in the number of employees within the digital business segments;
? a 14% increase (of RUB 6.8 bln) in depreciation, amortization and
impairment losses, due to higher payments associated with new objects, the
impairment of intangible assets and leases;
? an 8% increase (of RUB 3.2 bln) in interconnection charges, due to
higher traffic caused by the pandemic and the massive transition to remote
working;
? an 8% increase (of RUB 3.0 bln) in other operating expenses, due to the
implementation of Smart City projects, as well as the provision of
equipment within B2B and B2G projects, higher agent payments for financial
services in mobile commerce, recalculation of quality bonus payments;
? a 12% increase (of RUB 1.9 billion) in materials, mainly due to an
increase in expenditure on personal protective equipment amid pandemic,
and the consolidation of expenses on electricity supplies for DataLine
subsidiary.
Operating profit in the second quarter of 2020 increased by 16% year-on-year
to RUB 18.6 billion and by 14% to RUB 37.5 billion in the six months of
2020, compared to the corresponding periods of 2019.
OIBDA for the second quarter and six months of 2020 increased by 15%
year-on-year to RUB 48.8 billion and by 14% to RUB 95.9 billion
respectively. OIBDA dynamics were driven by revenue growth and the
above-mentioned factors, affecting operating expenses. The OIBDA margin
increased by 0.8 p.p. to 38.3% in the second quarter of 2020 compared to the
corresponding period of 2019. The OIBDA margin increased by 0.7 p.p. to
38.5% during the first six months of 2020 compared to the corresponding
period of 2019.
Net Income Analysis
In the second quarter of 2020, profit before tax increased by 28% to RUB
10.0 billion, compared to the corresponding period in 2019. During the first
six months of 2020, profit before tax increased by 16% to RUB 20.1 billion,
compared to the corresponding period in 2019. These dynamics were mainly
influenced by higher operating profit in the corresponding periods of 2020.
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