Broadband services shine as Rostelecom posts 2Q 2011 net profit of 8.55 billion roubles

Russian fixed line telecom provider, has posted a 2Q 2011 net profit of 8.55 billion roubles under IFRS.

­The bottom line is down 2% from the 2Q 2010 net profit of 8.76 billion roubles, with 2Q OIBDA increased 8% year on year to 28.8 billion roubles, as 2Q revenues increased 6% to 71.2 billion roubles.

The 2Q figures provided Rostelecom with a 2% year on year increase in 1H 2011 net income to 19.112 billion roubles, with OIBDA up 3% year on year to 56 billion roubles, as revenues rose 7% year on year to 143.6 billion roubles.

The company said the highlight for the half was a 30% increase in its broadband subscriber base, with 1H broadband revenues up 21% year on year to 23.4 billion roubles, helping offset a 2% decline in local telephone subscriber numbers.

CEO Alexander Provotorov said the figures, Rostelecom’s first since consolidating a number or regional fixed line providers, were solid in a difficult operating environment, with broadband services looking at strong future growth.

“Our financial and operating results for the second quarter of 2011 reflect the actual performance of the combined Company for the first time following the completion of the legal reorganisation on April 1, 2011, as well as the sustainability of our business in difficult market conditions. In its first three months as a combined operator, Rostelecom has shown strong and steady growth, which will drive the Company’s further development and will help us to achieve our targets to transform the business and to strengthen our market position. Revenues increased by 7% and OIBDA by 3% in the first half of 2011, and a comfortable level of predominantly ruble-denominated debt was maintained. We continued actively to grow our broadband and Pay-TV subscriber base. We are on track to achieve by 2015 the ambitious targets we set out in our development strategy. We believe that by attaining these objectives we will increase Rostelecom’s market value for the benefit of our shareholders.”

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