ROSTELECOM
FINANCIAL AND OPERATING RESULTS 4Q AND FY 2021
4 MARCH 2022
PRESS-RELEASE
MOSCOW, MARCH 4, 2022
Revenue increased by 6% in 2021; OIBDA1 up 13%; FCF2 up by 43%.
Moscow, Russia - March 4, 2022 - Rostelecom PJSC (MOEX: RTKM, RTKMP; OTCQX: ROSYY), Russia's largest integrated digital company, today announces its consolidated financial results for the fourth quarter and the full year of 2021 prepared in accordance with IFRS.
FOURTH QUARTER 2021 KEY FINANCIAL HIGHLIGHTS
- Revenue grew by 3% to RUB 168.3 billion compared to 4Q 2020:
- OIBDA up by 10% to RUB 49.1 billion;
- OIBDA margin up by 1.9 p.p. to 29.2%;
- Net profit of RUB 0.5 billion compared to net loss of RUB (1.5) billion in 4Q 2020;
- CAPEX3 excluding state programmes increased by 18% to RUB 42.5 billion (25.3% of revenue) compared to 4Q 2020;
- FCF of RUB 15.9 billion compared RUB 19.6 billion in 4Q 2020;
FULL YEAR 2021 FINANCIAL HIGHLIGHTS
- Revenue increased by 6% to RUB 580.1 billion;
- OIBDA grew by 13% to RUB 218.8 billion;
- OIBDA margin improved by 2.2 p.p to 37.7%;
- Net profit increased by 26% to RUB 31.8 billion;
- CAPEX excluding state programs increased by 11% to RUB 118.7 billion (20.5% of revenue);
- FCF increased by 43% to RUB 32.5 billion;
- Net Debt4 including lease liabilities increased by 8% since the beginning of the year to RUB 505.2 billion, resulting in a Net Debt/OIBDA ratio of 2.3x.
- Here and below, please refer to Attachment 1 of this statement for a full definition of OIBDA.
- Here and below Free Cash Flow ("FCF") is calculated as net cash from operating activity minus CAPEX, plus proceeds from selling fixed assets and intangible assets, plus interest received, plus subsidy from government.
- Here and below, capital expenditure ("CAPEX") comprises cash spent on fixed assets and intangible assets.
- Here and below, Net Debt is calculated as long-term and short-term loans and borrowings, (a) plus long- and short-term lease liabilities, (b) minus cash and cash equivalents, and (c) minus other financial assets.
PRESS-RELEASE
MOSCOW, MARCH 4, 2022
Key figures for 4Q 2021, RUB mln
RUB million | 4Q 2021 | 4Q 2020 | change, y-o-y |
Revenue | 168,332 | 163,009 | 3% |
OIBDA | 49,116 | 44,491 | 10% |
OIBDA margin % | 29.2% | 27.3% | - |
Operating Income | 8,009 | 7,295 | 10% |
Operating margin % | 4.8% | 4.5% | - |
Net Income | 0.450 | (1,507) | - |
% of revenue | 0.3% | (0.9%) | - |
Capital Expenditure excl. state | 42,548 | 36,162 | 18% |
programs | |||
% of revenue | 25.3% | 22.2% | - |
Net debt | 505,197 | 466,035 | 8% |
Net debt/ annualised OIBDA | 2.3 | 2.4 | - |
FCF | 15,938 | 19,644 | (3,706) |
Key figures for FY 2021, RUB mln
RUB million | 2021 | 2020 | change, y-o-y |
Revenue | 580,092 | 546,889 | 6% |
OIBDA | 218,814 | 194,050 | 13% |
OIBDA margin % | 37.7% | 35.5% | - |
Operating Income | 73,707 | 68,965 | 7% |
Operating margin % | 12.7% | 12.6% | - |
Net Income | 31,832 | 25,363 | 26% |
% of revenue | 5.5% | 4.6% | - |
Capital Expenditure excl. state | 118,740 | 107,139 | 11% |
programs | |||
% of revenue | 20.5% | 19.6% | - |
Net debt | 505,197 | 466,035 | 8% |
Net debt/ annualised OIBDA | 2.3 | 2.4 | - |
FCF | 32,499 | 22,659 | 9,840 |
PRESS-RELEASE
MOSCOW, MARCH 4, 2022
Mikhail Oseevskiy, President of Rostelecom, commented: "A number of strategic and structural changes have made it possible for Rostelecom to achieve its financial and operational targets set for 2021. We have successfully expanded and improved our product line, with an increased share of innovative digital services in the range as well as grown size of the business, while strengthening its market position in key segments. As a result, we managed to post positive performance across all key financial indicators. Solid growth was also demonstrated by FCF - over 40%. Strong 2021 results provide the basis for an increase in shareholder payouts relative to the lower limit set by the dividend policy. Therefore, management considers it possible to recommend
to increase dividend payments to 6 rubles per share for 2021."
Sergey Anokhin, Senior Vice-President and Chief Financial Officer added: "In 2021, Rostelecom continued to show stable business growth and a high level of cost control, which together ensured decent financial results. We also managed to meet our guidance in terms of revenue and OIBDA growth for 2021, while substantial cash flow has enabled us to implement some of the planned investment projects ahead of schedule while keeping the targeted range of CAPEX/Sales ratio. We enhanced our operations both in mature core and new growing areas coupled with increased internal efficiency as well as streamlined and downsized business model. We also aimed at decreasing our OPEX and optimizing the company's debt structure to improve its cost and ensure resilience over the market volatility. On the financial front, these efforts have
led to marginality growth, solid FCF generation as well as debt burden reduction. Operationally, they have enabled the company to further sustain and invest into growing promising areas. At the same time, the complex nature of the geopolitical context and uncertainty of the macroeconomic risks which can have a negative impact on the dynamics of the results of subsequent periods, we will take some time before discussing the potential prospects for 2022 until we see stabilisation and certainty and lower volatility in the financial markets."
PRESS-RELEASE
MOSCOW, MARCH 4, 2022
KEY OPERATING HIGHLIGHTS
Fixed services business
Number of subscribers (million): | 4Q 2021 | 4Q 2020 | change, y-o-y | |
FIBRE-BASED SERVICES | 10.8 | 10.4 | 4% | |
Internet access | ||||
B2C: Broadband | 9.8 | 9.5 | 4% | |
B2B/G: Broadband | 0.7 | 0.6 | 10% | |
B2B/G: Broadband + VPN | 1.0 | 0.9 | 10% | |
IPTV | 6.4 | 6.1 | 5% | |
Hosted PBX | 0.218 | 0.160 | 37% | |
TRADITIONAL SERVICES | ||||
Local telephony services | 12.5 | 14.0 | (11%) | |
B2C | 9.9 | 11.3 | (12%) | |
B2B/G | 2.6 | 2.7 | (6%) | |
Broadband xDSL | ||||
B2C: Broadband xDSL | 2.5 | 3.0 | (15%) | |
B2B/G: Broadband xDSL | 0.2 | 0.2 | (17%) | |
Cable TV | 4.5 | 4.7 | (6%) | |
ARPU5 (RUB): | 4Q 2021 | 4Q 2020 | change, y-o-y | |
FIBRE-BASED SERVICES | 380 | 377 | 1% | |
Internet access | ||||
B2C: Broadband | 2,868 | 2,764 | 4% | |
B2B/G: Broadband | 4,066 | 4,298 | (5%) | |
B2B/G: Broadband + VPN | 306 | 307 | (0,3%) | |
IPTV | 907 | 1,108 | (18%) | |
Hosted PBX | ||||
TRADITIONAL SERVICES | ||||
Local telephony services | 223 | 227 | (2%) | |
B2C | 575 | 585 | (2%) | |
B2B/G | ||||
Broadband xDSL | 462 | 450 | 3% | |
B2C: Broadband xDSL | 1,527 | 1,324 | 15% | |
B2B/G: Broadband xDSL | 191 | 186 | 3% | |
Cable TV | 380 | 377 | 1% | |
Mobile business | ||||
4Q 2021 | 4Q 2020 | change, y-o-y | ||
Data Traffic, incl. MVNO,Pb | 1,856 | 1,442 | 29% | |
Churn, % | (8.05%) | (8.09%) | 0.04 p. p. | |
Growth of active Internet users, % | 17.6% | 20.0% | (2.4 p. p.) | |
Subscriber base, mln | 47.5 | 46.6 | 2% |
5 Average revenue per user
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OAO Rostelecom published this content on 04 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 March 2022 06:45:05 UTC.