BBA: We See No Strong Growth Factors For Rostelecom
•Rostelecom’s revenue for 2009 totalled 61223.5 million RUR representing a decrease of 3.1% year on year, which is mainly due to a reduction in revenues from a number of traditional segments. IN USD terms the drop would have been even more significant. However, through the continued diversification of its business, the Company substantially increased the revenue from data services. During 2009 the share of new services (data and intelligent network services) amounted to 10.0% of Rostelecom’s total revenue.
•Domestic long-distance (DLD) traffic for the reporting period decreased 10.2% year on year to 9186.1 million minutes. DLD & interconnection revenues for the reporting period totalled 26063.0 million RUR, representing a year on year decrease of 11.8%. Outgoing international long-distance (OILD) traffic saw a decrease of 13.5% year on year to 1751.6 million minutes. ILD revenues from Russian operators and end-customers amounted to 11374.1 million RUR, representing a decrease of 5.9% compared to the previous year.
•The decrease in DLD and OILD traffic and revenue is primarily attributable to the weakened global macro-economic environment, the increasing competition in the Russian long-distance market as well as the continued migration of long-distance end-customer traffic from fixed-line to mobile networks.
•In 2009 the Company delivered a 41.8% increase year on year in revenues from new services, including data and intelligent network services, to 6139.8 million RUR. Revenues from data transmission and telematic services increased by 63.0% year on year totalling 5079.5 million RUR.
•Baltic Business Analysis does not believe in promising future of traditional telecom segment. This means that according to our estimations, the revenues of Rostelecom will not grow significantly even in long-term. Besides, the drop in both revenues and net profit was high and Rostelecom seems to be weaker than its main competitors.
You can find target price, BBA Investment Rating, our comment and more in following report:
Rostelecom (ROS, RTKM, RKMD), RKMD FY2009 Analyst Update 04/09/10
•Rostelecom’s revenue for 2009 totalled 61223.5 million RUR representing a decrease of 3.1% year on year, which is mainly due to a reduction in revenues from a number of traditional segments. IN USD terms the drop would have been even more significant. However, through the continued diversification of its business, the Company substantially increased the revenue from data services. During 2009 the share of new services (data and intelligent network services) amounted to 10.0% of Rostelecom’s total revenue.
•Domestic long-distance (DLD) traffic for the reporting period decreased 10.2% year on year to 9186.1 million minutes. DLD & interconnection revenues for the reporting period totalled 26063.0 million RUR, representing a year on year decrease of 11.8%. Outgoing international long-distance (OILD) traffic saw a decrease of 13.5% year on year to 1751.6 million minutes. ILD revenues from Russian operators and end-customers amounted to 11374.1 million RUR, representing a decrease of 5.9% compared to the previous year.
•The decrease in DLD and OILD traffic and revenue is primarily attributable to the weakened global macro-economic environment, the increasing competition in the Russian long-distance market as well as the continued migration of long-distance end-customer traffic from fixed-line to mobile networks.
•In 2009 the Company delivered a 41.8% increase year on year in revenues from new services, including data and intelligent network services, to 6139.8 million RUR. Revenues from data transmission and telematic services increased by 63.0% year on year totalling 5079.5 million RUR.
•Baltic Business Analysis does not believe in promising future of traditional telecom segment. This means that according to our estimations, the revenues of Rostelecom will not grow significantly even in long-term. Besides, the drop in both revenues and net profit was high and Rostelecom seems to be weaker than its main competitors.
You can find target price, BBA Investment Rating, our comment and more in following report:
Rostelecom (ROS, RTKM, RKMD), RKMD FY2009 Analyst Update 04/09/10
