ROSTELECOM PJSC (RKMD)
Rostelecom acquires Russia's leading infrastructure player in smart transportation
Moscow, Russia - May 22, 2020 - Rostelecom PJSC (MOEX: RTKM, RTKMP; OTCQX: ROSYY), the largest integrated digital service provider in Russia, today announces that its subsidiary Bashinformsvyaz PJSC has signed an agreement to acquire a 51% stake in VoiceLink LLC, a leading player in smart road traffic control systems.
VoiceLink is a high-tech IT and system integration company, offering a full range of products and services, including smart transport systems software and integration for some major infrastructure Smart and Safe City projects.
Anna Shumeyko, Senior Vice President of Rostelecom, commented: "With the acquisition of VoiceLink, Rostelecom powers on with its strategy to continue developing its smart services family. Our principal growth engine, this business segment is continuously boasting double-digit growth rates in our revenue structure. The acquisition of VoiceLink further increases the Group's product positioning within the Smart and Safe City projects and makes a strong contribution to our strategy been to build expertise in smart transport systems engineering and construction. We are seeing a lot of opportunities to realise synergy effects through the promotion of smart products across our existing clients and within the national "Safe Roads" programme".
Further information is available at https://www.company.rt.ru/en/ir/news_calendar/.
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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 13.2 mln users, it has more than 10.5 mln pay-TV customers, over 5.7 mln of which are subscribed to Rostelecom's IPTV services. Tele2 Russia, a Rostelecom subsidiary , is a major player in the mobile market with over 44 mln subscribers and the industry-leading NPS, a customer satisfaction benchmark.
In the first quarter of 2020, the Group generated RUB 121.6 bln of revenues, RUB 47.1 bln of OIBDA (38.7% of revenue) and RUB 7.7 bln 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.
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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.
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