DJ ROSTELECOM PJSC: ROSTELECOM FINANCIAL AND OPERATING RESULTS FOR THE THIRD QUARTER AND NINE MONTHS OF 2021
ROSTELECOM PJSC (RKMD) ROSTELECOM PJSC: ROSTELECOM FINANCIAL AND OPERATING RESULTS FOR THE THIRD QUARTER AND NINE MONTHS OF 2021 09-Nov-2021 / 09:31 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.
-----------------------------------------------------------------------------------------------------------------------
Third quarter revenue increased by 5%, with OIBDA[1] up 9%
Moscow, Russia - November 9, 2021 - Rostelecom PJSC (MOEX: RTKM, RTKMP; OTCQX: ROSYY), the largest digital service provider in Russia, today announces its consolidated financial results for the third quarter and nine months of 2021 prepared in accordance with IFRS.
THIRD QUARTER 2021 KEY FINANCIAL HIGHLIGHTS
-- Revenue increased by 5% to RUB 141.2 billion compared to 3Q 2020;
-- OIBDA up 9% to RUB 58.3 billion;
-- OIBDA margin up 1.5 p.p. to 41.3%;
-- Net profit of RUB 8.4 billion, compared to RUB 11.8 billion reported in 3Q 2020;
-- CAPEX[2] excluding state programs increased by 1% year-on-year to RUB 24.6 billion (17.4% of revenue);
-- FCF[3] of RUB 13.3 billion, compared to RUB 18.9 billion for the same period of 2020;
-- Net Debt[4] (including lease liabilities) increased by 8% YTD, amounting to RUB 502.5 billion, resultingin a Net Debt (including lease liabilities)/OIBDA ratio of 2.3x.
KEY FINANCIAL HIGHLIGHTS FOR NINE MONTHS OF 2021
-- Revenue increased by 7% to RUB 411.8 billion compared to the nine months of 2020;
-- OIBDA increased by 13% year-on-year to RUB 169.7 billion compared to the nine months of 2020;
-- OIBDA margin increased by 2.3 p.p. to 41.2% compared to the nine months of 2020;
-- Net profit increased by 17% to RUB 31.4 billion compared to the nine months of 2020;
-- CAPEX excluding state programs increased by 7% year-on-year to RUB 76.2 billion (18.5% of revenue);
-- FCF improved by RUB 13.5 billion, to amount to RUB 16.6 billion.
Key figures for 3Q 2021, RUB mln
RUB million 3Q 2021 3Q 2020 change, y-o-y Revenue 141,213 134,988 5% OIBDA 58,323 53,678 9% OIBDA margin % 41.3% 39.8% - Operating Income 21,228 23,423 (9%) Operating margin % 15.0% 17.4% - Net Income 8,398 11,768 (29%) % of revenue 5.9% 8.7% - Capital Expenditure excl. state programs 24,638 24,326 1% % of revenue 17.4% 18.0% - Net debt (incl. lease liabilities) 502,487 501,593 0.2% Net debt (incl. lease liabilities)/ OIBDA 2.3 2.6 - FCF 13,339 18,939 (5,600) Key figures for 9M 2021, RUB mln RUB million 9M 2021 9M 2020 change, y-o-y Revenue 411,760 383,880 7% OIBDA 169,698 149,559 13% OIBDA margin % 41.2% 39.0% - Operating Income 65,698 61,670 7% Operating margin % 16.0% 16.1% - Net Income 31,382 26,870 17% % of revenue 7.6% 7.0% - Capital Expenditure excluding state programmes 76,192 70,977 7% % of revenue 18.5% 18.5% - Net debt (incl. lease liabilities) 502,487 501,593 0.2% Net debt (incl. lease liabilities)/ OIBDA 2.3 2.6 - FCF 16,561 3,015 13,546
Mikhail Oseevskiy, President of Rostelecom, commented: "In the third quarter of 2021, Rostelecom continued to grow steadily, having achieved its key financial and operational targets. Revenue grew by 5%, OIBDA increased by 9%, and the company continues to increase its free cash flow, which reached almost RUB 17 billion during the 9 months of 2021, which will support our plans to increase dividend payments for the current year (of RUB 6 per share) and beyond.
"A key strategic initiative for the period was the recent acquisition by Rostelecom of BFT, a leading public services digitisation provider. Our focus on identifying promising and fast-growing digital business segments is a significant part of our transformation."
Vladimir Kirienko, First Vice-President of Rostelecom, commented: "The development of our brand-new services and solutions helps us generate additional value through our segment & cluster management model.. Our main goal is to strengthen our digital leadership by providing innovative products that are rising in demand as well as to ensure stable growth and efficiency in our core business. This has enabled us to perform well across our key financial metrics in absolute terms as well as to post OIBDA margin increase by solid 1.5 p.p."
Sergey Anokhin, Senior Vice-President and Chief Financial Officer added: "The Company continued to demonstrate stable business growth and a high level of cost control during the third quarter, which ensured that we remain within our budget for 2021. The successful fulfilment of our plans during the 9 months of 2021, and the moderate macroeconomic risk outlook enables us to look more optimistically at our anticipated results for the whole Full Year. As a result of this, we are improving our previously published forecast for OIBDA growth in 2021 to 10-12% y-o-y. In terms of revenue, the Company continues to plan for growth of at least 5% and we expect CAPEX in the range of 110-115 billion rubles (excluding the implementation of state programs)."
KEY OPERATING HIGHLIGHTS
Fixed business
Number of subscribers (million): 3Q 2021 3Q 2020 change, y-o-y Internet access 13.5 13.4 0.4% B2C: Broadband 12.4 12.3 0.05% B2B: Broadband + VPN 1.1 1.1 4% Pay TV 10.9 10.7 2% Incl. IPTV 6.3 5.9 7% Hosted PBX 0.198 0.147 35% Local telephony services 12,9 14,5 (11%) ARPU[5] (RUB): 3Q 2021 3Q 2020 change, y-o-y Internet access B2C: Broadband 393 390 1% B2B: Broadband + VPN 3,584 3,566 1% Pay TV (B2C) 252 245 3% Incl. IPTV 299 298 1% Hosted PBX 945 1,119 (16%) Blended ARPU[6] 551 537 3%
Mobile business
3Q 2021 3Q 2020 change, y-o-y Data Traffic, incl. MVNO,Pb 1,750 1,351 30% Churn, % (8.0%) (7.3%) 0.6 p.p) Growth of active mobile Internet users, % 18.5% 25.5% (7.0 p.p.) 1. The total number of Internet subscribers among households grew to 12.4 million in the third quarter of2021 compared to the corresponding period of last year. ARPU increased by 1% year-on-year to RUB 393; 2. The total number of Internet and VPN subscribers in B2B increased by 4% year-on-year to 1.1 million; ARPUincreased by 1% year-on-year to RUB 3,584; 3. The number of pay-TV subscribers grew by 2% to 10.9 million users compared to the corresponding period oflast year, with average ARPU of RUB 252 in B2C;
-- the number of IPTV subscribers increased by 7% to 6.3 million, and ARPU was RUB 299 in B2C; 4. The number of active mobile Internet users increased by 18.5% year-on-year during 3Q 2021. Year-on-yeargrowth in mobile Internet data traffic reached 30% during the third quarter of 2021; while cellular customer basechurn amounted to 8.0%/
KEY EVENTS RELATING TO 3Q 2021 AND AFTER THE END OF THE REPORTING PERIOD
Business news - Rostelecom continues to develop and expand its range of products and services:
-- Digital OTT platform Wink: -- A new "Wink+more.tv" package has been introduced, with over 170 TV-channels, 35k movies and series;
-- As part of partner integration with the VK Group Internet Holding, Wink is now offered within the VKCombo subscription offer;
-- Further upgrades to the Wink+ OTT box, including a new Bluetooth remote with Marusya-powered voicecontrol (Marusya is Rostelecom's smart speaker)
-- By the end of the nine months of 2021, the number of Wink customers accessing videos on two or moredevices increased to 2.5 million.
-- Rostelecom's "Key solution": -- The mobile app now has a technical support omnichat; also alarm code functionality has been improved;
-- Rostelecom.Key now covers over 192k apartments, which contributes to the revenue growth by 45% by 3Q2021;
-- "Smart Home" and home video surveillance services: -- Added a Face Detection function as well as introduced a new scheduled recording function for cameras;
-- 3Q 2021 revenue grew by 35% compared to 2Q 2021.
-- Evolving B2B services: -- A new system was introduced for signing service contracts remotely for SMEs;
-- Predictive data science analytics to provide bespoke business solutions for SMEs was integrated intoRostelecom's products;
-- Rostelecom has developed and pilot tested in VTB and SovkomBank branches a new solution. The newproduct "Videoanalytics Retail PRO" integrates computer vision and image understanding into cameras across bankbranches for better analytics of customer experience, identification of gaps and shortfalls in businessprocesses which helps improve sales performance and optimise staff workload and efficiency;
-- A new automatic QR code reading function has been added to the Complex Perimeter Security system forbetter management of entry restrictions for clients' visitors and employees, in order to meet a wide range ofrequirements including safety management procedures related to the pandemics;
(MORE TO FOLLOW) Dow Jones Newswires
November 09, 2021 01:31 ET (06:31 GMT)
DJ ROSTELECOM PJSC: ROSTELECOM FINANCIAL AND -2-
-- Rostelecom's Hosted PBX service is now available to customers who have been contracted with otheroperators and are keeping their telephone numbers; - Digital segment:
-- as part of the development of cloud and data center services: -- CloudLine services added to Rostelecom Data Center in Novosibirsk;
-- All Rostelecom data centers are now fully certified with the PCI DSS[7] standard;
-- Russian Baikal-T and Baikal-M processors have been recognised as technically compatible with theTIONIX VDI software for virtual desktop infrastructures that are essential for remote work environments;
-- A new National Cloud Platform facility was put into operation in Rostelecom's Kurchatov Data Centerin Moscow;
-- The Domain Coordination Center .RU/.?? - MSK-IX has included a back-up domain registration systemwhich enables an uninterrupted operation of domain areas;
-- Rostelecom launched a new Tier III certified Data Center in Moscow with a 207 racks capacity.
Rostelecom was ranked first by the number of data racks commissioned last year, according to CNews Analytics.
-- Digital Region project: -- Installation of 249 photo and video surveillance devices for better road traffic management, as wellas three systems for transport weight-and-dimensional control;
-- Installation of 387 smart cameras in communal hallways and connection of 1,250 cameras to the cityvideo surveillance platform;
-- External lighting systems modernised for four municipal entities.
-- Cyber security services: -- A new version of the DLP system Solar Dozor 7.5 has been introduced with an added function for macOSworkstations monitoring;
-- A competence center for Solar MSS cyber security services has been launched in Samara;
-- Successful delivery of a large-scale project for integration of the Solar Dozor DLP system forRostelecom's client Unipro;
-- Completed integration of the Solar appScreener code scanner for System Technologies, the largestbank, financial and industrial software provider in Belarus;
-- Solar appScreener was chosen by the Engineering Physics Institute to assess software compatibilitywith the IT security requirements of the Federal Service for Technical and Export Control (FSTEK), a federalexecutive body responsible for implementing the government policy for IT security.
-- Rostelecom built a digital infrastructure for the Marchenkovskaya wind farm in the Rostov region;
-- Rostelecom's federal platform for remote voting has been successfully deployed at the Single Voting Dayon 17-19 September 2021. - Operator business segment highlights include:
-- 8% year-on-year increase in ?2?[8] project revenues during the nine months of 2021;
-- Rostelecom leased optical fiber spectrum at 17 sections of the highway network to ER-Telecom;
-- Provision of a Vladivostok to Tokyo channel for VimpelCom with a 10 Gbps capacity. - Large projects undertaken include:
-- An agreement with Russian Post to provide communication services for Russia's largest corporate datanetwork;
-- An agreement with VTB to expand lease services for racks and process rooms;
-- An agreement with Danon for supply and installation of thermal camera stations and other devices foremployee and visitor management; - Rostelecom's subsidiary, mobile operator Tele2, continues to strengthen its offering:
-- New features and offers for Tele2 customers include: -- Yandex Pay express checkout;
-- Tele2 Disk information storage facility;
-- Access to Telegram and Viber messengers even on zero balance;
-- SIM-cards remote registration with non-qualified e-signature in the GosUslugi app (Russia's publicservices portal);
-- More attractive international roaming offers in Turkey;
-- SIM-cards are now sold in Moscow airports;
-- Tele2 Russia launched a new service "Kids Online" which offers access to thousands of movies and cartoonsas well as Wink's e-learning programmes.
-- Together with Mobile Solutions, Tele2 has launched "Smart Parking" the first smart device in Russia forparking payments;
-- Tele2 Russia released an online mini-series on customer service based on real customer enquiriesaddressed to Tele2 HelpDesk;
-- On the sustainability front, Tele2 has launched a national awareness campaign to raise awareness amongthe youth of the plight of older people and the digital challenges they are facing.
Other news
-- Rostelecom acquired a leading public services digitisation developer BFT Holding;
-- As part of the Bridging the Digital Divide Project 2.0, mobile coverage has been extended in 3Q 2021 to209 new villages across 26 regions of Russia;
-- Rostelecom has achieved Resg1 or the highest ESG reporting score by Russia's ESG rating agency AK&M.
OPERATING REVIEW
Revenue analysis
Revenue structure by services
RUB million 3Q 2021 3Q 2020 change, y-o-y 9M 2021 9M 2020 change, y-o-y Mobile 49,604 45,813 8% 143,611 129,683 11% Broadband 24,851 22,565 10% 72,691 66,752 9% Digital 18,418 19,322 (5%) 50,457 46,856 8% TV 9,870 9,437 5% 29,741 28,212 5% Wholesale services: 19,083 18,653 2% 56,679 54,646 4% Interconnect and traffic transit services 4,519 4,487 1% 13,447 13,210 2% VPN 8,105 7,376 10% 23,743 21,506 10% Rent of channels 2,444 2,599 (6%) 7,359 7,520 (2%) Infrastructure services 4,015 4,191 (4%) 12,130 12,410 (2%) Fixed telephony 12,030 13,400 (10%) 37,031 41,264 (10%) Other services 7,358 5,798 27% 21,550 16,467 31% Total 141,213 134,988 5% 411,760 383,880 7%
In the third quarter of 2021, revenue increased year-on-year by 5% to RUB 141.2 billion, the dynamics was driven by the following factors:
-- 8% increase in revenue from mobile, mainly due to a higher volume of mobile Internet data consumption andstandard voice services;
-- 10% growth in revenue from broadband due to a higher number of subscribers and higher ARPU for fibreoptic tariff plans, as well as revenues from Internet connection contracts reflected in books;
-- High base effect of 2020 related to certain digital services driven by few significant projects
In the nine months of 2021, revenue increased by 7% year-on-year to RUB 411.8 billion, as a result of the following factors:
-- 11% increase in revenue from mobile, mainly due to a higher volume of mobile Internet data consumptionand standard voice services;
-- 9% growth in revenue from broadband due to a higher number of subscribers, growth in ARPU as well asrevenues from Internet connection contracts;
-- 8% increase in digital revenues mainly driven by with the development of platform solutions fore-government, the promotion of information security solutions, cloud services and data centre services.
Operating income analysis
Breakdown of operating expenses
RUB million 3Q 2021 3Q 2020 change, 9M 2021 9M 2020 change,
y-o-y y-o-y
Personnel costs (31,482) (31,829) (1%) (97,848) (96,086) 2%
Depreciation, Amortization and impairment losses of (35,985) (29,252) 23% (100,631) (84,457) 19%
non-current assets
Interconnection charges (24,612) (24,204) 2% (71,702) (69,153) 4%
Materials, repairs and maintenance, utilities (10,865) (10,180) 7% (30,425) (27,920) 9%
Gain on the disposal of PPE and intangible assets 2,199 1,536 43% 7,377 3,841 92%
Impairment loss of financial assets measured at (1,701) (669) 154% (1,788) (3,135) (43%)
amortized cost
Other operating income 6,543 4,968 32% 15,814 15,280 3%
Other operating expenses (24,082) (21,936) 10% (66,859) (60,580) 10%
Total operating expenses (119,985) (111,566) 8% (346,062) (322,210) 7%
In the third quarter of 2021, operating expenses increased by 8% year-on-year, to amount to RUB 120.0 billion, largely due to the following factors:
-- 23% increase (of RUB 6.7 bln) in depreciation, amortization and impairment losses for non-current assets,partly due to a decrease of useful lives of items of a number of objects and intangible assets;
-- 10% increase (of RUB 2.1 bln) in other operating expenses, due to the formation of additional reserves aswell as the advertising and marketing expenses;
-- 154% growth (of RUB 1.0 bln) in impairment loss of financial assets measured at amortized cost, partlyattributable to the growth of reserves related to advance payments;
-- 43% increase (of RUB 0.7 bln) in gains from the disposal of PPE and intangible assets, mainly due toimproving results associated with the disposal of Rostelecom's real estate portfolio.
Operating expenses for the nine months of 2021 increased by 7% year-on-year to RUB 346.1 billion, largely due to the following factors:
-- 19% increase (of RUB 16.2 bln) in depreciation charges and impairment losses of non-current assets, dueto an increase in depreciation charges for new items of fixed assets, intangible assets and leases;
-- 10% increase (of RUB 6.3 bln) in other operating expenses, including due to the formation of additionalreserves, the deployment of Digital Region projects and expenses relating to the advertising and promotion of thecompany's services;
(MORE TO FOLLOW) Dow Jones Newswires
November 09, 2021 01:31 ET (06:31 GMT)
DJ ROSTELECOM PJSC: ROSTELECOM FINANCIAL AND -3-
-- 4% increase (of RUB 2.5 bln) in interconnection charges, due to an increase in direct costs driven byhigher traffic volumes;
-- 9% increase (of RUB 2.5 bln) in expenses for materials, repairs and maintenance, partly due to anincrease in utility bills;
-- 92% growth (of RUB 3.5 bln) in profit from disposal of PPE and intangible assets, mainly due to improvingresults associated with the disposal of Rostelecom's real estate portfolio.
Operating profit for the third quarter of 2021 decreased by 9% year-on-year to RUB 21.2 billion and increased by 7% to RUB 65.7 billion year-on-year during the nine months of 2021. The operating profit dynamics in the third quarter if 2021 was caused by higher growth in expenses.
OIBDA for 3Q 2021 increased by 9% to RUB 58.3 billion, and by 13% to year-on-year during the nine months of 2021 to RUB 169.7 billion. OIBDA dynamics were influenced by revenue growth and by the changes in operating expenses cited above. The OIBDA margin increased by 1.5 p.p. year-on-year to 41.3% during the third quarter of 2021 and was up 2.3 p.p. year-on-year to 41.2% during the nine months of 2021.
Net Income Analysis
Profit before tax decreased by 20% year-on-year during the third quarter of 2021 to RUB 12.1 billion, rising by 19% during the nine months of 2021 to RUB 41.4 billion. The profit before tax dynamics in the third quarter of 2021 was due to the decrease in operating profit, a increase in finance costs and the absence of foreign exchange losses in 2021. The profit before tax dynamics in the nine months of 2021 was due to the increase in operating profit and the absence of foreign exchange losses in 2021.
Income tax in 3Q 2021 amounted to RUB 3.7 billion, compared to RUB 3.3 billion during the corresponding period of 2020. During 9M 2021, RUB 10.1 billion of income tax was paid, compared to RUB 7.9 billion during the nine months of 2020, which is mainly due to changes reported in profit before tax, as well as certain expenses that were not deducted for tax purposes.
Net profit decreased by 29% year-on-year during the third quarter of 2021 to RUB 8.4 billion. During the nine months of 2021, net profit increased by 17% year-on-year to RUB 31.4 billion.
Financial review
Net operating cash flow for 3Q 2021 decreased by 14% year-on-year to RUB 39.1 billion, compared to the corresponding period of 2020. During the nine months of 2021, net operating cash flow grew by 21% year-on-year to RUB 93.1 billion.
At the end of the third quarter of 2021, cash outflow on investments in non-current assets, excluding state programmes, increased by 1% to RUB 24.6 billion (17.4% of revenue). Taking into account state programmes, this figure decreased by 2% to RUB 29.8 billion (21.0% of revenue). At the end of the nine months of 2021, cash outflow on investments in non-current assets, excluding state programs, increased by 7% to RUB 76.2 billion (18.5% of revenue). Taking into account state programs, this figure increased by 9% to RUB 91.3 billion (22.1% of revenue).
Free cash flow for 3Q 2021 amounted to RUB 13.3 billion, compared to RUB 18.9 billion in 3Q 2020. Free cash flow for the nine months of 2021 improved by RUB 13.5 billion to reach RUB 16.6 billion. Factors that contributed to higher free cash flow during the third quarter of 2021 include changes in the working capital, mostly caused by an increase in accounts receivable for the Bridging the Digital Divide Project, as well as the replacement of short-term liquidity controls with long-term financial instruments.
The improvement in free cash flow during the nine months of 2021 was influenced by OIBDA growth, the dynamics of other assets and obligations item, as well as the uneven distribution of advance payments and project delivery within the calendar year.
Free Cash Flow (RUB, billion)
As at September 30, 2021, the Group's total debt (including lease liabilities) increased by 7% and amounted to RUB 544.0 billion. The debt dynamics in the current year was due to higher lease liabilities stemming from the review of rental agreements' capitalisation terms. 100% of the Group's total debt remains rouble-denominated.
As at September 30, 2021, the Group's net debt (including lease liabilities) amounted to RUB 502.5 billion, an increase of 8% since the beginning of the year. The company's debt burden over the past 12 months has decreased from 2.6x to 2.3x net debt/OIBDA[9]. OTHER INFORMATION: CONFERENCE CALL
Rostelecom's management will hold a conference call and webcast today at 4:00 PM (Moscow), 2:00 PM (CET), 1:00 PM (UK) and 8:00 AM (NYT). To participate in the conference call, please dial:
UK/ International: +44 203 984 9844
USA: +1 718 866 4614
Russia: +7 (495) 283 98 58
Confirmation Code (ENG): 539980
Confirmation Code (RUS): 619022
A webcast of the conference call will only be available in English. To access the webcast please follow the link: https://mm.closir.com/slides?id=539980.
A replay of the conference call will be available on the Company's website
https://www.company.rt.ru/en/ir/results_and_presentations/financials/IFRS/2021/3/.
* * *
APPENDICES 1. Reconciliation of OIBDA; 2. Statement of Comprehensive Income for 9M 2021; 3. Statement of Cash Flows for 9M 2021; 4. Statement of Financial Position for 9M 2021.
APPENDIX 1: RECONCILIATION OF OIBDA
OIBDA is a non-U.S. GAAP and non-IFRS financial measure, which the Company defines as operating income before depreciation and amortisation as well as some certain expenses. We believe that OIBDA provides useful information to investors because it is an indicator of the strength and performance of our business operations, including our ability to finance capital expenditures, acquisitions and other investments and our ability to incur and service debt.
The following indicators are not taken into account in the calculation of OIBDA:
-- Expenses related to the long-term management incentive programme, implying accruals in personnel costsline;
-- Expenses related to non-government pension insurance.
RUB million 3Q 2021 3Q 2020 change, 9M 2021 9M 2020 change,
y-o-y y-o-y
Operating income 21,228 23,423 (9%) 65,698 61,670 7%
Plus amortisation (35,985) (29,252) 23% (100,631) (84,457) 19%
Plus expenses related to the long-term management (834) (716) 16% (2,501) (2,526) (1%)
incentive programme
Plus expenses related to non-government pension insurance (276) (287) (4%) (868) (906) (4%)
OIBDA 58,323 53,678 9% 169,698 149,559 13%
OIBDA margin, % 41.3% 39.8% 41.2% 39.0%
APPENDIX 2: Statement of Comprehensive Income for 9M 2021
Nine-month period ended
30 September (unaudited)
2021 2020
(restated)
Revenue 411,760 383,880
Operating expenses
Wages, salaries, other benefits and payroll taxes (97,848) (96,086)
Depreciation, amortization and impairment losses (100,631) (84,457)
Interconnection charges (71,702) (69,153)
Materials, utilities, repairs and maintenance (30,425) (27,920)
Gain on disposal of property, plant and equipment and intangible assets 7,377 3,841
Impairment loss of financial assets measured at amortized cost (1,788) (3,135)
Other operating income 15,814 15,280
Other operating expenses (66,859) (60,580)
Total operating expenses, net (346,062) (322,210)
Operating profit 65,698 61,670
Share of net profit/(loss) of associates and joint ventures (22) 448
Finance income 1,607 1,709
Finance costs (27,915) (27,861)
Other investing gain, net 1,924 470
Foreign exchange (loss)/gain, net 145 (1,716)
Profit before income tax 41,437 34,720
Income tax expense (10,055) (7,850)
Profit for the period 31,382 26,870
Other comprehensive income
Other comprehensive income to be reclassified to profit or loss
in subsequent periods
Exchange differences on translation of foreign operations 96 526
Share of other comprehensive income of associates 55 -
Other comprehensive income for the period, net of tax 151 526
Total comprehensive income for the period 31,533 27,396
Profit attributable to:
Equity holders of the Group 30,044 26,084
Non-controlling interests 1,338 786
Total comprehensive income attributable to:
Equity holders of the Group 30,195 26,610
Non-controlling interests 1,338 786
(MORE TO FOLLOW) Dow Jones Newswires
November 09, 2021 01:31 ET (06:31 GMT)
DJ ROSTELECOM PJSC: ROSTELECOM FINANCIAL AND -4-
Earnings per share attributable to equity holders of the Group - 8.94 8.50 basic (in roubles) Earnings per share attributable to equity holders of the Group - 8.87 8.42 diluted (in roubles)
APPENDIX 3: Statement of Cash Flows for 9M 2021
Nine-month period ended
30 September (unaudited)
2021 2020
(restated)
Cash flows from operating activities
Profit before tax 41,437 34,720
Adjustments to reconcile profit before tax to cash generated from operations
Depreciation, amortization and impairment losses 100,631 84,457
Gain on disposal of property, plant and equipment and intangible assets (7,377) (3,841)
Impairment loss of financial assets measured at amortized cost 1,788 3,135
Share of net profit/(loss) of associates and joint ventures 22 (448)
Finance income (1,607) (1,709)
Finance costs excluding finance costs on employee benefit obligations 27,890 27,827
Other investing gain, net (1,924) (470)
Foreign exchange loss/(gain), net (145) 1,716
Share-based motivation program 2,364 2,586
Increase in accounts receivable and contract assets (24,911) (22,186)
Increase in employee benefits 247 574
Increase in inventories (2,680) (2,601)
Decrease in accounts payable, provisions and accrued expenses (2,118) (1,205)
Increase in contract costs, prepayments and other assets (7,429) (12,791)
Increase/(decrease) in other liabilities 1,524 (1,387)
Cash generated from operations before income tax and interest paid 127,712 108,377
Interest paid (27,731) (26,897)
Income tax refund 42 1,005
Income tax paid (6,895) (5,439)
Net cash from operating activities 93,128 77,046
Cash flows from investing activities
Purchase of property, plant and equipment and intangible assets (91,258) (83,842)
Proceeds from sale of property, plant and equipment, intangible assets and assets held for 8,139 4,495
sale
Acquisition of financial assets (14,369) (8,157)
Proceeds from disposals of financial assets 11,631 3,072
Interest received 837 494
Subsidy from Government 5,715 4,822
Dividends received 444 402
Purchase of subsidiaries and business, net of cash acquired (983) (115,131)
Distribution received from joint venture 399 -
Proceeds from disposal of subsidiaries, net of cash disposed 47 (74)
Acquisition of equity accounted investees (252) (125)
Net cash used in investing activities (79,650) (194,044)
Nine-month period ended
30 September (unaudited)
2021 2020
(restated)*
Cash flows from financing activities
Issue of share capital - 66,000
(Purchase) of treasury shares (2,759) -
Proceeds from bank and corporate loans 459,527 701,971
Repayment of bank and corporate loans (456,188) (658,998)
Proceeds from bonds 14,934 40,000
Repayment of bonds (1,945) (2,034)
Repayment of vendor financing payable - (2)
Proceeds from other non-current financing liabilities - (29)
Repayment of lease liabilities (13,266) (10,611)
Acquisition of non-controlling interests - (36)
Dividends paid to shareholders of the Group (16,864) (16,751)
Dividends paid to non-controlling shareholders of subsidiaries (1,198) (1,305)
Net cash (used in) / from financing activities (17,759) 118,205
Effect of exchange rate changes on cash and cash equivalents (27) (283)
Net (decrease)/increase in cash and cash equivalents (4,308) 924
Cash and cash equivalents at beginning of the period 31,215 19,955
Cash and cash equivalents at the end of the period 26,907 20,879
APPENDIX 4: Statement of Financial Position for 9M 2021
30 September 31 December
2021 2020
(unaudited) (restated)
Assets
Non-current assets
Property, plant and equipment 586,136 575,558
Goodwill and other intangible assets 143,275 141,353
Right of use assets 111,871 95,733
Trade and other accounts receivable 6,248 6,317
Investments in associates and joint ventures 10,918 10,896
Other financial assets 781 815
Other non-current assets 14,242 12,975
Deferred tax assets 8,353 8,970
Contract assets 726 972
Contract costs 16,865 16,326
Total non-current assets 899,415 869,915
Current assets
Inventories 13,474 10,792
Contract assets 15,725 6,710
Contract costs 816 674
Trade and other accounts receivable 67,635 50,166
Prepayments 7,404 8,953
Prepaid income tax 877 1,377
Other financial assets 14,579 11,482
Other current assets 8,365 7,892
Cash and cash equivalents 26,907 31,215
Asset classified as held for sale 545 831
Total current assets 156,327 130,092
Total assets 1,055,742 1,000,007
Equity and liabilities
Equity attributable to equity holders of the Group
Share capital 95 95
Treasury shares (11,761) (14,374)
Retained earnings and other reserves 204,637 194,424
Total equity attributable to equity holders of the Group 192,971 180,145
Non-controlling interests 38,836 37,587
Total equity 231,807 217,732
Non-current liabilities
Loans and borrowings 359,053 372,406
Lease liabilities 103,000 86,392
Employee benefits 6,917 6,670
Deferred tax liabilities 44,724 41,672
Accounts payable and accrued expenses 864 1,580
Contract liabilities 12,844 15,811
Provisions 5,473 5,848
Other financial liabilities 19,411 10,912
Other non-current liabilities 41,918 32,831
Total non-current liabilities 594,204 574,122
Current liabilities
Loans and borrowings 62,460 32,535
Lease liabilities 19,460 17,399
Accounts payable and accrued expenses 83,222 96,033
(MORE TO FOLLOW) Dow Jones Newswires
November 09, 2021 01:31 ET (06:31 GMT)
DJ ROSTELECOM PJSC: ROSTELECOM FINANCIAL AND -5-
Income tax payable 2,236 3,023 Contract liabilities 33,082 34,680 Provisions 12,260 9,413 Other financial liabilities - 1,914 Other current liabilities 17,011 13,156 Total current liabilities 229,731 208,153 Total liabilities 823,935 782,275 Total equity and liabilities 1,055,742 1,000,007
PJSC Rostelecom is the largest integrated digital services and products provider, operating in all segments of the telecommunications market in Russia. The Company serves millions of households, state and private enterprises across the country.
Rostelecom is Russia's undisputed market leader, providing high-speed Internet access and pay-TV. The total number of broadband users stands at over 13.5 mln users, it has more than 10.9 mln pay-TV customers, over 6.3 mln of which are subscribed to IPTV. Tele2 Russia, a Rostelecom subsidiary, is a major player in the mobile market with the industry leading NPS, a customer satisfaction benchmark. The joint mobile subscriber base is over 46.6 mln users.
Rostelecom is a key strategic innovator that provides solutions in the following fields: E-Government, cybersecurity, data-centres and cloud computing, biometry, healthcare, education and housing & utility services.
During the 9M 2021, the Group generated RUB 411.8 bln of revenues, RUB 169.7 bln of OIBDA (41.2% of revenue) and RUB 31.4 bln of net income.
Rostelecom is a key strategic innovator that provides solutions in the following fields: E-Government, cybersecurity, data-centres 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 forecastsof 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 expansionof 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 thedevelopment 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 assessmentof 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 inglobal economic conditions;
-- risks relating to Russian legislation, regulation and taxation, including laws, regulations, decrees anddecisions governing the Russian telecommunications industry, securities industry as well as currency and exchangecontrols relating to Russian entities and their official interpretation by regulatory bodies;
-- risks relating to the Company, including the achievement of the anticipated results, levels ofprofitability 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 telecommunicationsinfrastructure, technological innovations as well as the convergence of technologies;
-- other risks and uncertainties. For a more detailed discussion of these and other factors, see theCompany'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.
-----------------------------------------------------------------------------------------------------------------------
[1] Here and below, please refer to Attachment 1 of this statement for a full definition of OIBDA.
[2] Here and below, capital expenditure ("CAPEX") comprises cash spent on fixed assets and intangible assets.
[3] Here and below Free Cash Flow (FCF) is calculated as net cash from operating activity minus CAPEX, plus proceeds from selling fixed assets and intangible assets, plus interest received, plus subsidy from government.
[4] Here and below, Net Debt is calculated as total debt (including long-term and short-term lease liabilities) less cash, cash equivalents and short-term investments (other financial assets).
[5] Average revenue per user
[6] Blended ARPU includes revenue from one user subscribed to a number of services simultaneously, including broadband, IPTV and digital cable TV
[7] The Payment Card Industry Data Security Standard (PCI DSS) is a set of requirements intended to ensure that all companies that process, store, or transmit credit card information maintain a secure environment.
[8] Operator to Operator
[9] OIBDA for the last 12 months
-----------------------------------------------------------------------------------------------------------------------
ISIN: US7785291078 Category Code: QRT TIDM: RKMD LEI Code: 2534001D752JPNM0H170 Sequence No.: 126309 EQS News ID: 1247272 End of Announcement EQS News Service =------------------------------------------------------------------------------------
Image link: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=show_t_gif&application_id=1247272&application_name=news
(END) Dow Jones Newswires
November 09, 2021 01:31 ET (06:31 GMT)
