Rostelecom is Russia’s national telecommunications operator and now also includes the regional incumbent telecommunications operators (Center Telecom, Sibirtelecom, FarEastTelecom, UralsvyazInform, VolgaTelecom, North-West Telecom and SouthTelecom) and Dagsvyazinform. Rostelecom has the largest domestic backbone network (approximately 500,000 km) and last-mile connections to approximately 33 mln households in Russia. The company holds licenses to provide a wide range of telecommunications services (telephony, data, TV and value-added solutions) to residential, corporate and governmental subscribers and third-party operators across every region of the Russian Federation.
Rostelecom’s ordinary and preferred shares are traded on the Moscow Exchange (tickers: RTKM, RTKMP) and its DRs are traded OTC in the United States on the OTCQX under ticker ROSYY. Rostelecom is majority-owned (55.2% of ordinary shares) by the Russian government and has a free float of 25.5% of the issued ordinary shares and 71.2% of the preferred shares. Currently, Rostelecom is undergoing a reorganization aimed at simplifying the company’s structure by eliminating cross-ownership with state-controlled Svyazinvest; the Russian government will retain control of the restructured entity. Standard & Poor’s has assigned Rostelecom a BB+ international credit rating, the outlook stable. Rostelecom serves 27.5 mln local fixed line voice subscribers, 13.5 mln mobile voice subscribers, 8.9 mln fixed line broadband subscribers and 6.4 mln pay TV subscribers.
The group generated R238.7 bln in combined and consolidated revenues, R94.0 bln in OIBDA (39.4% of revenues) and R30.6 bln in net income in 9m12.