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ROSTELECOM PJSC: ROSTELECOM FINANCIAL AND OPERATING RESULTS FOR THE SECOND QUARTER AND FIRST HALF OF 2021

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ROSTELECOM PJSC (RKMD)
05-Aug-2021 / 09:31 MSK
Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.

 ROSTELECOM FINANCIAL AND OPERATING RESULTS FOR THE SECOND QUARTER AND FIRST HALF OF 2021

 

Second quarter revenue increased by 9%, OIBDA[1] up 15%, net profit up 46% and FCF[2] increased by RUB 10.7 billion

Moscow, Russia - August 5, 2021 - Rostelecom PJSC (MOEX: RTKM, RTKMP; OTCQX: ROSYY), the largest digital service provider in Russia, today announces its consolidated financial results for the second quarter and first half of 2021 prepared in accordance with IFRS.

SECOND QUARTER 2021 KEY FINANCIAL HIGHLIGHTS

 

FIRST HALF YEAR 2021 FINANCIAL HIGHLIGHTS

 

 

 

 

 

 

 

 

 

Key figures for 2Q 2020, RUB mln

RUB million

2Q 2021

2Q 2020

 change, y-o-y

Revenue

138,589

127,279

9%

OIBDA

55,938

48,801

15%

OIBDA margin %

40.4%

38.3%

-

Operating Income

21,798

18,939

15%

Operating margin %

15.7%

14.9%

-

Net Income

11,174

7,649

46%

% of revenue

8.1%

6.0%

-

Capital Expenditure excl. state programs

24,373

24,778

(2%)

% of revenue

17.6%

19.5%

-

Net debt (incl. lease liabilities)

493,849

494,114

(-0.1%)

Net debt/ OIBDA

2.4

2.7

-

FCF

1,134

(9,566)

10,700


Key figures for 1HY 2020, RUB mln

RUB million

6M 2021

6M 2020

 change, y-o-y

Revenue

270,547

248,892

9%

OIBDA

111,375

95,882

16%

OIBDA margin %

41.2%

38.5%

-

Operating Income

44,470

38,248

16%

Operating margin %

16.4%

15.4%

-

Net Income

22,984

15,102

52%

% of revenue

8.5%

6.1%

-

Capital Expenditure excluding state programmes

51,554

46,651

11%

% of revenue

19.1%

18.7%

-

Net debt (incl. lease liabilities)

493,849

494,114

(-0,1%)

Net debt/ annualised OIBDA

2.4

2.7

-

FCF

3,222

(15,924)

19,146

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mikhail Oseevskiy, President of Rostelecom, commented: "We continued to perform well across all financial and operational indicators during the second quarter of 2021, demonstrating solid double-digit growth in revenue from digital and mobile services, OIBDA and net income. For the second quarter in a row, we have significantly improved our free cash flow position, which helps create a base from which to grow future dividend payments. The most important development during the quarter was the adoption of our updated strategy. Our strategic priority for the next five years is to further evolve into an integrated provider of digital services solutions with an emphasis on smart growth in our traditional business and focused leadership in digital clusters such as data centres and cloud services, cybersecurity, online medicine, digital regions and government digital services. To this end, we plan to gradually embark on a new business model which will be organised by clusters and segments. Our quarterly reporting will reflect that new structure to help us track the execution of our strategy by clusters and segments. We have a strong team capable of meeting our strategic goals which encompass growth as well as the realisation of further material cost reductions.  This will underpin our sustainable development while creating additional value for all shareholders and stakeholders."

 

 

Vladimir Kirienko, First Vice-President of Rostelecom, commented: "The growth objectives set in our new strategy are very ambitious, but the results we have achieved during our digital transformation in recent years instil in us a confidence that by 2025 Rostelecom will cross the RUB 700 billion mark in terms of revenue, increase OIBDA by 1.5x and at least doubling net profit. These are ambitious strategic goals, but the momentum we have built with a close-knit professional team and the support of our shareholders will enable us to achieve them. A priority is to focus on our fast-growing digital segments, where we can build a strong leadership position and deliver an attractive return on investment."

 

 

Sergey Anokhin, Senior Vice-President and Chief Financial Officer added: "The Company has demonstrated further sustainable growth as well as effective cost control which resulted in a solid set of positive financial results in the second quarter and the first half of 2021. Rostelecom has already started reaping benefits from the launch of transformation programmes stipulated in the renewed strategy, including those related to curbing cost increases at a time when we are actively growing the business. This will create additional shareholder value and attractive returns on capital. We exceeded our expectations for the first half of 2021 and the moderate macroeconomic risk outlook enables us to look more optimistically at our anticipated results for the second half of the year.  As a result of this, we are improving our previously published forecast for 2021. We are raising our outlook on consolidated OIBDA and now expect it to grow by 8-10%, and can review it once more at the third quarter 2021 results; our revenue outlook remains intact at a minimum 5% growth and we expect СAPEX of approximately RUB 110-115 billion, excluding the implementation of state programs."

 

 

 

 

KEY OPERATING HIGHLIGHTS

Fixed business

Number of subscribers (million):

2Q 2021

2Q 2020

change, y-o-y

Internet access

13.5

13.4

1%

B2C: Broadband

12.4

12.3

0.4%

B2B: Broadband + VPN

1.1

1.1

4%

Pay TV

10.8

10.7

2%

Incl. IPTV

6.3

5.8

8%

Hosted PBX

0.185

0.139

33%

Local telephony services

13.3

14.9

(11%)

 

ARPU[6] (RUB):

2Q 2021

2Q 2020

change, y-o-y

Internet access

 

 

 

B2C: Broadband

396

395

0.5%

B2B: Broadband + VPN

3,623

3,344

8%

Pay TV

254

248

2%

Incl. IPTV

302

309

(2%)

Hosted PBX

969

1,148

(16%)

Blended ARPU[7]

553

545

2%

 

Mobile business

 

2Q 2021

2Q 2020

change, y-o-y

Data Traffic, incl. MVNO,Pb

1,597

1,216

31%

Churn, %

(7.2%)

(9.0%)

(1.8 p.p.)

Growth of active mobile Internet users, %

19.7%

28.1%

(8.4 p.p.)

 

 

 

 

KEY EVENTS RELATING TO Q2 2021 AND AFTER THE END OF THE REPORTING PERIOD

Business news

Revenue generated by the "Game" tariff increased by 10% in the second quarter of 2021.

By the end of the first half of 2021, the number of Wink customers accessing videos on two or more devices increased to 2.3 million. 

 

By the end of the first half of 2021, the "Key solution" covered 165,000 apartments.

 

 

Revenue generated from the "Smart Home" service and home video surveillance increased by 36% during the second quarter.

 

 

 

 

 

 

 

 

 

Other news

 

 

 

 

 

 

OPERATING REVIEW

Revenue analysis

Revenue structure by services

RUB million

2Q 2021

2Q 2020

change, y-o-y

H1 2021

H2 2020

change, y-o-y

Mobile

 47,907  

 42,906  

12%

 94,007  

 83,870  

12%

Broadband

 23,811  

 22,194  

7%

  47,840  

 44,187  

8%

Digital

 17,891  

 15,014  

19%

 32,040  

 27,534  

16%

TV services

 9,922  

 9,286  

7%

 19,871  

 18,775  

6%

Wholesale services

 19,199  

 18,222  

5%

 37,596  

 35,993  

4%

Interconnect and traffic transit services

 4,506  

 4,476  

1%

 8,928  

 8,723  

2%

VPN

 8,084  

 7,104  

14%

 15,638  

 14,130  

11%

Rent of channels

 2,439  

 2,487  

(2%)

 4,915  

 4,921  

(0%)

Rent and maintenance of telecommunications infrastructure

 4,170  

 4,155  

0%

 8,115  

 8,219  

(1%)

Fixed telephony

 12,260 

13,674  

(10%)

 25,001  

 27,864  

(10%)

Other services

 7,599  

 5,983  

27%

 14,192 

 10,669  

33%

Total

138,589

127,279

9%

270,547

248,892

9%

 

 

 

 

 

 

 

In the second quarter of 2021, revenue increased year-on-year by 9% to RUB 138.6 billion, as a result of the following factors:

In the first half of 2021, revenue increased by 9% year-on-year to RUB 270.5 billion, as a result of the following factors:

 

Operating income analysis

Breakdown of operating expenses

 

RUB million

2Q 2021

2Q 2020

 Change, y-o-y

H1 2021

H2 2020

change, y-o-y

Personnel costs

(32,196)

(32,067)

0%

(66,366)

(64,257)

3%

Depreciation, Amortization and impairment losses of non-current assets

(32,990)

(28,440)

16%

(64,646)

(55,205)

17%

Interconnection charges

(23,463)

(23,520)

(0%)

(47,090)

(44,949)

5%

Materials, repairs and maintenance, utilities

(9,969)

(8,900)

12%

(19,560)

(17,740)

10%

Gain on the disposal of PPE and intangible assets

2,633

946

178%

5,178

2,305

125%

Impairment loss of financial assets measured at amortized cost

(1,382)

(1,303)

6%

(87)

(2,466)

(96%)

Other operating income

4,069

4,655

(13%)

9,271

10,312

(10%)

Other operating expenses

(23,493)

(19,711)

19%

(42,777)

(38,644)

11%

Total operating expenses

(116,791)

(108,340)

8%

(226,077)

(210,644)

7%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In the second quarter of 2021, operating expenses increased by 8% year-on-year, to amount to RUB 116.8 billion, largely due to the following factors:

 

Operating expenses for the first half of 2021 increased by 7% year-on-year to RUB 226.1 billion, largely due to the following factors:

Operating profit for the second quarter of 2021 increased by 15% year-on-year to RUB 21.8 billion and by 16% to RUB 44.5 billion year-on-year during the first half of 2021.

OIBDA for 2Q 2021 increased by 15% to RUB 55.9 billion, and by 16% to year-on-year during the first half of 2021 to RUB 111.4 billion. OIBDA dynamics were influenced by revenue growth and by the changes in operating expenses cited above.  The OIBDA margin increased by 2.0 p.p. year-on-year to 40.4% during the second quarter of 2021 and was up 2.6 p.p. year-on-year to 41.2% during the first half of 2021. 

Net Income Analysis

Profit before tax increased by 44% year-on-year during the second quarter of 2021 to RUB 14.2 billion, rising by 50% during the first half of the year to RUB 29.3 billion. This was mainly due to the increase in operating profit, a decrease in finance costs and the absence of foreign exchange losses during the reporting period.

Income tax in 2Q 2021 amounted to RUB 3.0 billion, compared to RUB 2.3 billion during the corresponding period of 2020. During 1H 2021, RUB 6.4 billion of income tax was paid, compared to RUB 4.5 billion during the first half of 2020, which is mainly due to changes reported in profit before tax.

Net profit increased by 46% year-on-year during the second quarter of 2021 to RUB 11.2 billion. During the first half of 2021, net profit increased by 52% year-on-year to RUB 23.0 billion.

Financial review

Net operating cash flow for 2Q 2021 increased by 67% year-on-year to RUB 25.4 billion, compared to the corresponding period of 2020. During the first half of 2021, net operating cash flow grew 71% year-on-year to RUB 31.7 billion.

At the end of the second quarter of 2021, cash outflow on investments in non-current assets, excluding state programmes, decreased by 2% to RUB 24.4 billion (17.6% of revenue). Taking into account state programmes, this figure increased by 11% to RUB 30.8 billion (22.2% of revenue). At the end of the first half of 2021, cash outflow on investments in non-current assets, excluding state programs, increased by 11% to RUB 51.6 billion (19.1% of revenue), taking into account state programs, this figure increased by 15% to RUB 61.5 billion (22.7% of revenue).

Free cash flow for 2Q 2021 amounted to RUB 1.1 billion, having improved year-on-year by RUB 10.7 billion. Free cash flow for the first half of 2021 improved by RUB 19.1 billion to reach RUB 3.2 billion. Factors that contributed to higher free cash flow during the second quarter of 2021 include growth in OIBDA, as well as uneven  advance payments and work performed during a calendar year. Including the factors listed above, the improvement in free cash flow during the first half of 2021 was influenced by the lower volumes of accounts payable compared to the corresponding period of 2020

 

Free Cash Flow (RUB, billion)

 

 

 

As at June 30, 2021, the Group's total debt (including lease liabilities) amounted to RUB 531.0 billion, a slight change compared to the beginning of the year.  100% of the Group's total debt remains rouble-denominated as at June 30th, 2021.

As at June 30, 2021, the Group's net debt (including lease liabilities) amounted to RUB 493.8 billion, an increase of 6% since the beginning of the year. The company's debt burden over the past 12 months has decreased from 2.7x to 2.4x net debt/OIBDA[10] (including lease liabilities).

 


OTHER INFORMATION: CONFERENCE CALL

Rostelecom's management will hold a conference call and webcast today at 4:00 PM (Moscow), 3:00 PM (CET), 2:00 PM (UK) and 9:00 AM (NYT). To participate in the conference call, please dial:

UK/ International:   +44 203 984 9844

USA:    +1 718 866 4614

Russia:     +7 (495) 283 98 58

 

Confirmation Code (ENG):  539980

Confirmation Code (RUS):  619022

 

 

A webcast of the conference call will only be available in English. To access the webcast please follow the link: https://mm.closir.com/slides?id=539980.

 

A replay of the conference call will be available on the Company's website

https://www.company.rt.ru/en/ir/results_and_presentations/financials/IFRS/2021/2/

* * *

APPENDICES

APPENDIX 1: RECONCILIATION OF OIBDA

OIBDA is a non-U.S. GAAP and non-IFRS financial measure, which the Company defines as operating income before depreciation and amortisation as well as some certain expenses. We believe that OIBDA provides useful information to investors because it is an indicator of the strength and performance of our business operations, including our ability to finance capital expenditures, acquisitions and other investments and our ability to incur and service debt.

The following indicators are not taken into account in the calculation of OIBDA:

 

RUB million

2Q 2021

2Q 2020

Change, y-o-y

H1 2021

H2 2020

change, y-o-y

Operating income

21,798

18,939

15%

44,470

38,248

16%

Plus amortisation

(32,990)

(28,440)

16%

(64,646)

(55,205)

17%

Plus expenses related to the long-term management incentive programme

(833)

(1,096)

(24%)

(1,667)

(1,810)

(8%)

Plus expenses related to non-government pension insurance

(317)

(325)

(3%)

(592)

(619)

(5%)

OIBDA

55,938

48,802

15%

111,375

95,882

16%

OIBDA margin, %

40.4%

38.3%

 

41.2%

38.5%

 


 

 

APPENDIX 2: Statement of Comprehensive Income for H1 2021

 

 

Six-month period ended 30 June (unaudited)

 

 

2021

2020
(restated)

Revenue

 

270,547

248,892

 

 

 

 

Operating expenses

 

 

 

Wages, salaries, other benefits and payroll taxes

 

(66,366)

(64,257)

Depreciation, amortization and impairment losses

 

(64,646)

(55,205)

Interconnection charges

 

(47,090)

(44,949)

Materials, utilities, repairs and maintenance

 

(19,560)

(17,740)

Gain on disposal of property, plant and equipment and intangible assets

 

5,178

2,305

Impairment loss of financial assets measured at amortized cost

 

(87)

(2,466)

Other operating income

 

9,271

10,312

Other operating expenses

 

(42,777)

(38,644)

Total operating expenses, net

 

(226,077)

(210,644)

Operating profit

 

44,470

38,248

 

 

 

 

Share of net (loss)/profit of associates and joint ventures

 

(108)

309

Finance income

 

1,013

1,096

Finance costs

 

(17,860)

(19,359)

Other investing gain, net

 

1,779

449

Foreign exchange gain/(loss), net

 

52

(1,121)

Profit before income tax

 

29,346

19,622

Income tax expense

 

(6,362)

(4,520)

Profit for the period

 

22,984

15,102

Other comprehensive income

 

 

 

Other comprehensive income to be reclassified to profit or loss in subsequent periods

 

 

 

Exchange differences on translation of foreign operations

 

35

237

Other comprehensive income for the period, net of tax

 

35

237

Total comprehensive income for the period

 

23,019

15,339

 

 

 

 

Profit attributable to:

 

 

 

Equity holders of the Group

 

22,335

14,616

Non-controlling interests

 

649

486

 

 

 

 

Total comprehensive income attributable to:

 

 

 

Equity holders of the Group

 

22,370

14,853

Non-controlling interests

 

649

486

Earnings per share attributable to equity holders of the Group - basic (in roubles)

 

6.67

5.00

Earnings per share attributable to equity holders of the Group - diluted (in roubles)

 

6.56

4.96

 

 

 

 

 

 

 

 

 

 

 

APPENDIX 3: Statement of Cash Flows for H1 2021

 

 

 

Six-month period ended 30 June (unaudited)

 

 

2021

2020
(restated)

Cash flows from operating activities

 

 

 

Profit before tax

 

29,346

19,622

 

 

 

 

Adjustments to reconcile profit before tax to cash generated from operations

 

 

 

Depreciation, amortization and impairment losses

 

64,646

55,205

Gain on disposal of property, plant and equipment and intangible assets

 

(5,178)

(2,305)

Impairment loss of financial assets measured at amortized cost

 

87

2,466

Share of net (loss)/profit of associates and joint ventures

 

108

(309)

Finance income

 

(1,013)

(1,096)

Finance costs excluding finance costs on employee benefit obligations

 

17,843

19,336

Other investing gain, net

 

(1,779)

(449)

Foreign exchange (gain)/loss, net

 

(52)

1,121

Share-based motivation program

 

1,576

1,813

 

 

 

 

Increase in accounts receivable and contract assets

 

(13,614)

(14,419)

Increase in employee benefits

 

264

398

Increase in inventories

 

(853)

(923)

Decrease in accounts payable, provisions and accrued expenses

 

(7,461)

(15,550)

Increase in contract costs, prepayments and other assets

 

(4,118)

(7,403)

Decrease in other liabilities

 

(2,106)

(4,130)

Cash generated from operations before income tax and interest paid

 

77,696

53,377

 

 

 

 

Interest paid

 

(17,883)

(17,635)

Income tax refund

 

42

7

Income tax paid

 

(5,783)

(4,068)

Net cash from operating activities

 

54,072

31,681

Cash flows from investing activities

 

 

 

Purchase of property, plant and equipment and intangible assets

 

(61,475)

(53,600)

Proceeds from sale of property, plant and equipment, intangible assets and assets held for sale

 

5,882

2,977

Acquisition of financial assets

 

(8,152)

(3,501)

Proceeds from disposals of financial assets

 

6,361

1,748

Interest received

 

684

351

Subsidy from Government

 

4,059

2,667

Dividends received

 

414

159

Purchase of subsidiaries and business, net of cash acquired

 

(945)

(114,810)

Distribution received from joint venture

 

399

-

Proceeds from disposal of subsidiaries, net of cash disposed

 

47

(74)

Acquisition of equity accounted investees

 

(176)

(25)

Net cash used in investing activities

 

(52,902)

(164,108)

Cash flows from financing activities

 

 

 

Issue of share capital

 

-

66,000

Purchase of treasury shares

 

(1,404)

-

Proceeds from bank and corporate loans

 

289,698

501,818

Repayment of bank and corporate loans

 

(285,855)

(457,976)

Proceeds from bonds

 

-

40,000

Repayment of bonds

 

(1,945)

(1,861)

Repayment of vendor financing payable

 

-

(2)

Proceeds from other non-current financing liabilities

 

-

(7)

Repayment of lease liabilities

 

(8,331)

(6,338)

Acquisition of non-controlling interests

 

-

(20)

Unclaimed dividends to shareholders of the Group

 

70

-

Dividends paid to non-controlling shareholders of subsidiaries

 

(1,011)

(270)

Net cash (used in) / from financing activities

 

(8,778)

141,344

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

(77)

(357)

Net (decrease)/increase in cash and cash equivalents

 

(7,685)

8,560

 

 

 

 

Cash and cash equivalents at beginning of the period

 

31,215

19,955

Cash and cash equivalents at the end of the period

 

23,530

28,515

 

 

 

APPENDIX 4: Statement of Financial Position for H1 2021

 

 

30 June

2021

(unaudited)

31 December

2020

 (restated)

Assets

 

 

 

Non-current assets

 

 

 

Property, plant and equipment

 

579,121

575,357

Goodwill and other intangible assets

 

143,393

141,361

Right of use assets

 

114,170

95,733

Trade and other accounts receivable

 

6,122

6,317

Investments in associates and joint ventures

 

10,577

10,896

Other financial assets

 

796

815

Other non-current assets

 

15,444

12,975

Deferred tax assets

 

8,504

8,970

Contract assets

 

759

972

Contract costs

 

16,390

16,326

Total non-current assets

 

895,276

869,722

 

 

 

 

Current assets

 

 

 

Inventories

 

11,648

10,792

Contract assets

 

11,262

6,710

Contract costs

 

725

674

Trade and other accounts receivable

 

62,016

50,154

Prepayments

 

7,785

8,953

Prepaid income tax

 

1,220

1,377

Other financial assets

 

13,613

11,482

Other current assets

 

7,530

7,892

Cash and cash equivalents

 

23,530

31,215

Asset classified as held for sale

 

599

831

Total current assets

 

139,928

130,080

Total assets

 

1,035,204

999,802

 

 

 

 

Equity and liabilities

 

 

 

Equity attributable to equity holders of the Group

 

 

 

Share capital

 

95

95

Treasury shares

 

(14,722)

(14,374)

Retained earnings and other reserves

 

200,333

194,425

Total equity attributable to equity holders of the Group

 

185,706

180,146

 

 

 

 

Non-controlling interests

 

38,169

37,563

Total equity

 

223,875

217,709

 

 

 

 

Non-current liabilities

 

 

 

Loans and borrowings

 

336,925

372,406

Lease liabilities

 

105,184

86,392

Employee benefits

 

6,934

6,670

Deferred tax liabilities

 

42,624

41,502

Accounts payable and accrued expenses

 

891

1,580

Contract liabilities

 

12,936

15,811

Provisions

 

5,463

5,848

Other financial liabilities

 

10,926

10,912

Other non-current liabilities

 

38,440

32,831

Total non-current liabilities

 

560,323

573,952

 

 

 

 

Current liabilities

 

 

 

Loans and borrowings

 

69,937

32,535

Lease liabilities

 

18,946

17,399

Accounts payable and accrued expenses

 

98,434

96,022

Income tax payable

 

1,890

3,023

Contract liabilities

 

29,220

34,680

Provisions

 

12,038

9,413

Other financial liabilities

 

1,263

1,914

Other current liabilities

 

19,278

13,155

Total current liabilities

 

251,006

208,141

Total liabilities

 

811,329

782,093

Total equity and liabilities

 

1,035,204

999,802

 

PJSC 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 13.5 mln users, it has more than 10.8 mln pay-TV customers, over 6.3 mln of which are subscribed to Rostelecom's IPTV services. Tele2 Russia, a Rostelecom subsidiary, is a major player in the mobile market with the industry-leading NPS, a customer satisfaction benchmark. The joint mobile subscriber base is over 46.6 mln users.

Rostelecom is a key strategic innovator that provides solutions in the following fields: E-Government, cybersecurity, data-centres and cloud computing, biometry, healthcare, education and housing & utility services.

During the 1H 2021, the Group generated RUB 270.5 bln of revenues, RUB 111.4 bln of OIBDA (41.2% of revenue) and RUB 23.0 bln of net income.

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.

[1] Here and below, please refer to Attachment 1 of this statement for a full definition of OIBDA.

[2] 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.

[3] Here and below, capital expenditure ("CAPEX") comprises cash spent on fixed assets and intangible assets.

[4] Here and below, Net Debt is calculated as total debt less cash, cash equivalents and short-term investments (other financial assets).

[5] Here and below, lease liabilities.

[6] Average revenue per user

[7] Blended ARPU includes revenue from one user subscribed to a number of services simultaneously, including broadband, IPTV and digital cable TV

[8] Operator to Operator

[9] One ordinary share and one preferred share

[10] OIBDA for the last 12 months


ISIN:

US7785291078

Category Code:

IR

TIDM:

RKMD

LEI Code:

2534001D752JPNM0H170

Sequence No.:

119224

EQS News ID:

1224219


 

End of Announcement

EQS News Service

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