ROSTELECOM PJSC (RKMD)
Rostelecom acquires one of the leading Internet and pay-TV providers
in the Primorsky region
Moscow, Russia - August 5, 2019 - Rostelecom PJSC (MOEX: RTKM, RTKMP; OTCQX: ROSYY), the largest digital service provider in Russia, today announces that its subsidiary Bashinformsvyaz ("Bashtel") has signed an agreement to acquire a 100% stake in three companies to secure full control over the Alliance Telecom Group. Alliance Telecom has been providing Internet access and TV services across the Primorsky region since 2007, servicing individual clients and business in the cities of Vladivostok, Ussuriysk, Nakhodka and Artyom.
As for the household segment, which accounts for 80% of Alliance Telecom's revenue, the operator is an undisputable leader in Vladivostok and one of the leading providers in the Primorsky region overall with a subscriber base of 110,000 families. The company also serves more than 6,000 B2B clients which are predominantly consuming a mono- broadband service.
In 2018, Alliance Telecom's turnover amounted to over RUB 900 million.
The deal is in line with Rostelecom's strategic priority to develop its digital ecosystem and client services offering.
Anna Shumeyko, Senior Vice President and Chief of Staff of the Presidential executive office of Rostelecom, commented: "The acquisition will strengthen Rostelecom's position in the broadband internet market in the Primorsky region. We are seeing a lot of opportunities to realise the synergy effects from operational cost optimization as well as from upselling the Alliance Telecom subscriber base with an expanded set of services, currently available to Rostelecom's clients."
* * *
PJSC Rostelecom is the largest digital service provider, operating in all segments of the telecommunications market in Russia, it serves millions of households, the state and private enterprises across the country.
Rostelecom is Russia's undisputed market leader, providing high-speed Internet access to over 13 million users and pay-TV services to more than 10.2 million families, over 5.4 million of which are subscribed to Rostelecom's IPTV services on a national level.
In the six months of 2019, the Group generated RUB 158.8 billion of revenues, RUB 53.5 billion of OIBDA (33.7% of revenue) and RUB 10.0 billion of net income.
The Group is the leading provider of telecommunications services to government bodies and corporates of all levels.
Rostelecom is a key strategic innovator that provides solutions in the following fields: E-Government, cybersecurity, data-centers 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:
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:
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.
|EQS News ID:||851637|
|End of Announcement||EQS News Service|