Description of the industry and competitive analysis. Feedback from employees of Rostelecom - about the company and about working in it Positive feedback from staff about the company

Shares of market leaders of commercial storage and data processing centers by number of racks, 2018, Source: TMT Consulting data, 2018. %

The steady growth of the information security market will continue as the amount of data stored in information systems increases, as well as the growth of data transmission in Smart Home projects, automatic process control systems and the Internet of things. In the period 2018-2022, the forecast CAGR for the market will be about 9%

Mikhail Oseevsky - about the first results of work at the head of the company, the development of the industry and cryptocurrency mining

Mikhail Oseevsky, President of Rostelecom, who took over the company in March 2017, in an interview with RBC spoke about the role of the operator in the Digital Economy, the future of eSports, and why increasing the share in Tele2 is not a priority

Mikhail Oseevsky (Photo: Arseniy Neskhodimov for RBC)

In early March, he prematurely terminated the powers of Sergei Kalugin, who had headed Rostelecom since 2013, and approved Mikhail Oseevsky, VTB top manager, as president. Analysts changed the head of the company unexpectedly - there were no obvious complaints about Kalugin. According to two RBC sources on the market, Oseevsky's candidacy for the post of head of Rostelecom was lobbied by the VTB group, which intended to sell its stake in their joint venture, T2 RTK Holding, to the state operator (provides mobile communication services under the Tele2 brand). Sergei Kalugin, in turn, opposed such a deal.

The top manager spoke about who invited Mikhail Oseevsky to the post of head of Rostelecom, the vision for the development of Tele2 and the new strategy of the state operator in an interview with RBC.

“I knew it was a very large company”

— When and from whom did you receive an invitation to head Rostelecom?

- The final decision on the appointment of the head of Rostelecom is made by the Prime Minister, signing the directive. Actually, the proposal came from him in the winter of 2017, a few weeks before the appointment.

— How did you take it? What introductory information did they give you about Rostelecom? To what extent did they coincide with what you later saw in the company?

- At that time, work was already underway on the creation of the Digital Economy program. It became obvious that Rostelecom would play a key role in its implementation. I suppose that with this in mind, the decision of the government was made.

While working at VTB, I formed an idea about Rostelecom, since it was a client of the bank. First of all, about financial indicators: I knew that this is a very large company, with large revenues, high margins, profitable, whose securities are traded both in Russia and abroad.

- What have you managed to do in six months as president?

— Like anyone who comes to the company's management, I focused on setting up the team and immersing myself in key business processes. A new board has been formed, which should play a more active role in the governance structure. I think that the company performed well in the second quarter — revenue grew noticeably, profit almost doubled, and good margins were ensured (over 32% on OIBDA). The company is growing in almost all major business segments. We pay a lot of attention to optimizing the management model, strengthening management not only at the level of the corporate center, but also branches. All this is the basic platform for further movement forward.

- These actions are a continuation of the policy and strategy of the previous team or a givenalready by youdevelopment vector?

— A company like Rostelecom is a huge aircraft carrier. He cannot sharply turn either to the right or to the left - you can roll over and drown. The strategy that was adopted at the end of 2013 assumed an increase in the share of modern digital products, it is absolutely correct, we are moving in this direction, and even faster than expected. But over the past years, a lot has happened - external conditions have changed, new digital services and technologies have appeared and strengthened. Therefore, today we are actively working to develop a new five-year strategy, including taking into account the approved federal digital economy program.

What does Rostelecom do?

Rostelecom, a public joint-stock company for long-distance and international telecommunications, was registered on September 23, 1993 (then in the form of OJSC). The company provides services of local telephony, broadband Internet access and cloud storage, pay TV, services based on its own backbone communication network. Owns data processing centers (DPC), is the operator of the gosuslugi.ru portal, a contractor for programs to eliminate the "digital divide", connect medical institutions to the Internet and other government projects. Rostelecom owns 45% of T2 RTK Holding (the remaining 55% is owned by a consortium of investors within the VTB Group, Invintel B.V. Alexey Mordashov and Rossiya Bank Yuri Kovalchuk).

Revenue of Rostelecom in the second quarter - 75.2 billion rubles, net profit - 2.8 billion rubles. As of December 31, 2016, the largest shareholders of the company were the state represented by the Federal Property Management Agency (owned 48.71% of ordinary shares), Rostelecom's subsidiary Mobitel (15.06%) and Vnesheconombank (4.29%). Rostelecom shares are traded on the Moscow Stock Exchange, ADRs are traded on the OTCQX trading floor of the OTC Markets Group OTC trading system, not listed on the London, Frankfurt and other foreign stock exchanges.

“It is necessary to remove the postscript “intercity and international telecommunications” from our name

— When do you plan to adopt a new strategy, what should be in it?

— We focus on the end of this year. The strategy will have a clear financial model with our predicted results. This is very important for a public company like Rostelecom. In general, the main vector is preserved - this is the evolutionary development of Rostelecom into a provider of digital services. We believe that it is necessary to transform into a company that will provide smart digital services for end customers - people, companies and the state.

I think we need to take a symbolic step: to remove the postscript "intercity and international telecommunications" from our name. The company has long outgrown this definition. In recent years, Rostelecom has been actively growing in such segments as broadband Internet access, pay TV, data centers and "clouds" (cloud services. — RBC). These segments help to successfully offset the fall in telephony revenue. Compared to 2012 last year, revenue from telephone services decreased by a third, its contribution to total revenue is already less than 30%. At the same time, there is no decrease in total revenue due to the digital segment, which provided 47% of revenue in the second quarter of 2017. Digital revenue grew by more than 10% year-on-year.​​

What is important to keep in mind: as a result, part of what we are doing today, Internet access, for example, will become an impersonal housing and communal service - like water or energy supply. Only, unlike water and electricity, our traffic is unlimited - it is not paid by the meter. We want to be a company that sells as many final products as possible - high-margin services and services. Not a method of delivering a service, or, say, not only a method of delivering it, but the product itself - for example, television and video content. Rostelecom is engaged in the development of the most advanced technology of pay TV - IPTV (controlling, by the way, 74% of the market), which just uses a broadband access network to deliver TV and video content. Another promising direction is the "smart home" for household management and security, and other intelligent services for home and family.

If we talk about the B2B / B2G segment, then here we see a perspective in the “everything you need as a service” model. When we offer a client a comprehensive turnkey solution for his communication and IT tasks, including ultra-high-speed communication channels, equipment and IT infrastructure, data centers and cloud software, cyber protection, technical support for all this. Thus, the client is freed from non-core tasks and can concentrate on his business.

Photo: Sergey Karpukhin / Reuters

- Will the indicators envisaged by the previous strategy (was calculated for the period from 2015 to 2020) be achieved? For example, by 2020 the company was supposed to take 50% of the broadband access (BBA) market in Russia.

— We see that the penetration of the Internet in the country is already at a high level, sales of this product are clearly slowing down. Nevertheless, Rostelecom is growing faster than the market, more than half of new broadband subscribers opt for our company. There are still many different players on the market, consolidation is underway. I think we will not abandon this goal. And in what horizon we will go to it - we'll see. We see certain prospects for M&A transactions (mergers and acquisitions, “mergers and acquisitions.” — RBC), we constantly look at various companies.

“Rostelecom does not need to gain control in Tele2 in order to realize synergies”

- RBC sources said that you were invited to Rostelecom to increase your share in T2 RTK Holding. At your first press conference, you said that Rostelecom was analyzing the feasibility of increasing its stake, but was not considering a full buyout. On the last one, that companies are focused on finding synergy in the joint development of business. There is no deal and will not be?

— Increasing the share is currently not our priority. Tele2 partners and I are focused on improving operational and financial results. As we see today, we manage to organize interaction in such a way that there are results. When I said that we are analyzing the need to gain control in Tele2, I had in mind the question: will this help achieve the desired indicators in terms of efficiency? Today, the management of Rostelecom and Tele2 work closely and smoothly. Tele2 has completely switched to using Rostelecom's communication channels, we are discussing the possibility of maintaining the Tele2 infrastructure by our specialists. This will allow the two companies to cut costs and become more efficient.

Rostelecom successfully launched as a virtual mobile operator on the Tele2 network: 500,000 subscribers in eight months of operation is a good result. In the near future, the Tele2 retail network will start selling Rostelecom service packages. We continue to move towards the provision of 4Play services (mobile services, fixed telephony, Internet access and pay TV in a single package. — RBC). We will start sales in a limited number of regions to test. The global vector for the development of companies is the provision of complex services to the client on a turnkey basis. It should not matter how (wired or wireless) the client gets what he needs - communication, information and emotions.

In the first half of 2018, Tele2 headquarters will move to the Comcity office center in Rumyantsevo, where Rostelecom divisions and our subsidiaries already operate. This is also important and necessary for the formation of common teams. We pay a lot of attention to marketing and the formation of product lines. In particular, Rostelecom has a strong position in the market for consolidating TV and video content, and we want to use this potential in providing services for Tele2 customers. We are discussing a number of other joint products.

Today, Rostelecom does not need to gain control over Tele2 in order to realize synergy. We see that Tele2, as a company owned by different shareholders, is developing successfully. In general, I can say that Tele2's results for the first half of 2017 are very good.

Photo: Casper Hedberg / Bloomberg

“But because they are not revealed, there is a suspicion that something is wrong with them.

— It was decided not to disclose [indicators] for a number of reasons. But take my word for it that the operating and financial results are much better than even what we expected.

- Did I understand correctly that due to the fact that Tele2 improved its financial results, the issue of reducing the share of individual shareholders of the company has ceased to be relevant?

— This should be asked of other shareholders.

But you must know their position...

— Today, all major shareholders of Tele2 are focused on improving the company's efficiency. Both we, VTB, and Rossiya Bank are actively working together on the Board of Directors on how to help the development of Tele2. There is no need to fuss, we are big, serious players who make key decisions based on strategic interests, and not on the current situation.

- When will Tele2 be able to recoup investments in building a network in Moscow? Many analysts doubted that entering the capital market in the fall of 2015 was a reasonable step for the company due to high competition in Moscow and the high costs of such expansion.

- It is incorrect to count separately. Any company, including Rostelecom, operates with different margins and profitability in different markets and regions. It depends on the infrastructure, the moment of entry, competition. It is impossible not to be in Moscow. This is the country's key market. If a company does not operate in Moscow, consider that it does not exist on the global Russian market.

- Due to the fact that Rostelecom intends to focus on the end client, will a 45% stake in Tele2 be enough for the company? Tele2 has a large subscriber base...

— The future business model is a partnership. We do not plan to produce alone all the products that we are going to offer customers. The idea that only by gaining control, you can achieve a result, already, I think, is outdated.

“None of the mobile operators alone can create a 5G infrastructure”

- You said that Rostelecom's new strategy will be linked to the Digital Economy state program, which the government will launch in July. How will this be expressed?

— First of all, it is the development of infrastructure. The creation of fifth generation networks (5G) is very important. This is a separate large area that will be reflected in our strategy. We believe that Rostelecom can serve as an infrastructure operator and partner for the entire industry. None of the mobile operators alone will be able to create a 5G infrastructure - it is very expensive.

— Are we talking about transport networks?

- Not only, we are talking about the entire access infrastructure: both communication channels and base stations, which will need to be installed dozens of times more than in networks of previous generations. We believe that the most effective solution would be to create a common company using optical networks (fiber-optic communication lines. — RBC) Rostelecom.

Have you already discussed this idea with someone other than Tele2?

- We are not only starting to service communication channels and equipment of Tele2, but also other operators, including the Big Three. As an outsourcing or infrastructure company, we are consistently gaining capacity and we believe that this is a good basis to gradually move towards deeper cooperation, towards the creation of a common infrastructure.

— Do the regulators and the government agree to the creation of such a single company?

- The matter has not yet reached concrete proposals and decisions. But it is very important that there is a dialogue between market participants, everyone understands the current problems.

Photo: Andrey Rudakov / Bloomberg

— What, besides infrastructure, do you plan to do under the Digital Economy program?

- We will participate in the development of plans and policies in all five areas of the program - these are regulation, personnel, infrastructure, research platforms and end-to-end technologies, cybersecurity. For example, Rostelecom has created a special Center for Cyber ​​Security and Protection, which is deservedly considered one of the strongest in the country.

We consider the creation of applied digital platforms for various sectors of the economy to be very promising. Digital technological platforms are created in the interests of individual industries, because each of them has its own specifics. This is an intelligent software that accumulates a huge array of industry data and provides convenient tools for processing it. The platform helps to extract and process "raw" information into a system of industry knowledge. Today, even a simple field can and should become a source of digital data. Sensors can be installed on the field that automatically collect information about humidity and precipitation, temperature, sunny days, soil. This data flows to the industry platform, is systematized, applications begin to process it, machine intelligence is connected - as a result, recommendations are issued for watering, fertilizing, and the optimal start of planting and harvesting. Everything is automated and objective, the influence of the human factor on the collection and analysis of data is excluded. The result of the work of the platform and applications on it is a good harvest and an effective business.

​In digital platforms, the competency centers in the program are Rosatom and Rostec, but we work with them in partnership. We chose four priority sectors for ourselves: these are oil and gas production, energy, engineering and agriculture. Each industry has its own specifics; agro-industrial complex and oil production require different sensors, a special approach to data analysis. The platform approach is also applicable to social services. Recently, we have been paying great attention to the development of projects in the field of "smart" healthcare. The transition to digital medical records and their accumulation in a secure centralized electronic archive of medical information opens up great prospects. In the future, the analysis of constantly updated information will help predict the need for medicines and medical staff, and develop preventive plans. Remote access to the medical history (of course, with the permission of the patient) will make it easier to provide the right care in any place, no matter where he is.

- Recently, everyone has been talking about blockchain technology, about mining (mining) of cryptocurrency. Are you considering the possibility of mining cryptocurrency at your data centers?

Let's split the question. We believe that the blockchain as a system of distributed secure information storage undoubtedly has a future. Russia must move in this direction. Let's see what the future of cryptocurrencies will be. I am still very reserved, because this is a matter of faith, in general. Everyone in childhood played with candy wrappers. Wrappers "Bear in the North" or "Red Poppy" had different "values". More precisely, the children believed that it was a value. The same is true with cryptocurrencies. So far, this is a very risky story.

— But you could mine cryptocurrency on your infrastructure and exchange it for real money.

- We will not do this ourselves, but companies have the opportunity to rent capacities from us in the data center and "mining". If this kind of activity does not contradict the current legislation - please.

- Was it difficult for you, as a new person in telecom, to immerse yourself in technological aspects?

— I was lucky. For the first time in the last 25 years of my life, I started working in a company that would benefit from the engineering education I received. For quite a long period (eight years) I was engaged in quantum physics, laser physics: many things are clear to me from the point of view of information transfer. Much, of course, is new. Especially in the part that concerns modern Internet and other high technologies. But it is also an opportunity to gain new knowledge. I really discovered a lot of new things for myself over the past six months.

In general, the industry is changing very quickly in terms of technology and products. But the industry is not growing - the dynamics of income from communication services is near zero. It's not very good. Today, Russia is one of the leaders in the availability of telecom services - both mobile communications and home Internet. For us and our colleagues in the industry, this is the main challenge (challenge. — RBC) — how to move forward in conditions of rather low ARPU (average bill per subscriber. — RBC). There is only one direction - new products, services and offers. The client is ready to pay for comfort, convenience in solving everyday problems, this is on the one hand. On the other hand, he is ready to pay for emotions. For example, for a good movie or series - please, you can find it in our IPTV. For a cool online game - please, we develop special products for gamers. In general, I think that eSports will actively develop. We are following the development of virtual reality and other technologies that may make the delivery of emotions even more vivid and high-tech in the future.

Photo: Arseniy Neskhodimov for RBC

— Do you have your own business?

— I have been keeping all the money on deposits in state banks for a long time. Having gone a long way through various experiments, having managed the exchange, I realized what risks exist and how much time should be spent on eliminating them. Therefore, it was clearly defined that a high-level hired manager does not need to enter into any conflicts of interest and bother with an assessment of some risks that are not related to what he does.

Six facts about Mikhail Oseevsky

1983 - graduated from the Leningrad Polytechnic Institute named after M.I. Kalinin with a degree in engineering electrophysics.

1986-1993 - worked at the D.V. Efremov Research Institute of Electrophysical Equipment (NIIEFA).

1993-1999 - was the deputy manager, and then the manager of the St. Petersburg Currency Exchange.

2003-2011 - Vice Governor of St. Petersburg, in 2011-2012 - Deputy Minister of Economic Development of Russia.

From July 2012 to March 2017, he was Deputy President and Chairman of the Management Board of VTB Bank.

The number of subscribers and Internet users continues to increase today, so the question remains relevant: "Which operator to choose?" One of the players in the telecommunications market and a major employer is OJSC Rostelecom. What is this provider? What are the opinions of employees about Rostelecom?

About company

The market of telecommunication services in our country is steadily developing. OJSC Rostelecom has been an interregional operator since 2006 and operates in several Russian regions. It occupies far from the last positions, but it is not included in the "big three" operators. What services does the company provide?

• Local and long-distance telephony.
• Interactive TV.
• Cellular.

Company activities

Rostelecom performs various activities related to the creation and development of e-government, ensures the functioning of elections, etc. It is the market leader in telecommunications services provided to Russian government agencies and corporate users. It occupies a leading position in the provision of pay-TV services (more than 8 million users). The company has the largest backbone network in the Russian Federation, with a total length of 500,000 km. According to international credit ratings, the company has a stable financial position. Revenue for the 1st quarter of 2015 amounted to more than 70 billion rubles, net profit - more than two billion rubles.

Rostelecom as an employer

The company is a major employer that provides official employment, a full social package, a stable job, fair wages without delay. Often noted on the positive side of the team in which they work. Feedback from Rostelecom employees makes us pay attention to the company's commercial approach to solving many issues. For example, installation is carried out even with poor line parameters. The priority is to capture the market, fulfill and overfulfill the plan, and not personnel. Recruited in the staff mainly and sellers, and other specialists are reduced. Work in Rostelecom, the reviews of employees about which you need to study before passing the interview, differs depending on the department and region.

Positive staff feedback about the company

Employees note that the company has changed for the better lately, a positive development trend is outlined. The few positive reviews of Rostelecom employees reflect the following advantages of the employer:

• work is stable, simple and understandable, competently organized;
• Opportunity for career growth in a prestigious company;
• acceptable working conditions;
• close-knit team and high;
• increase in salaries and funding after the change of leadership in a number of regions.

Negative feedback from employees about Rostelecom

According to employees, the old qualified specialists of the company have been reduced to 90%. Large cuts have meant that new and remaining employees are forced to take on a number of responsibilities of those who have been made redundant at the same wage level. Employees of Rostelecom reacted negatively to the policy pursued by management in relation to personnel. Many reviews point out the same shortcomings of this employer.

• Management incompetence.
• Unfavorable socio-psychological climate.
• Bureaucracy and red tape. The software works very poorly, before you do something, you need to coordinate your actions with many people. Contracts are concluded for a long time, about a month.
• High staff turnover. There is no competent personnel policy. They do not retain, do not appreciate good specialists.
• Small worthy only for top managers.
• Traditional modes of communication are broken. Outdated equipment, cables, gaskets, etc. Major repairs are not planned. The company is not able to provide high-quality communication even for its employees.
• Fitters buy equipment and pay for gasoline at their own expense.
• They misinform applicants at interviews and clients.

Work at Rostelecom, the feedback from employees about which should make the management think about the problems of the company, is characterized by a high workload and low motivation of the staff. Many were not satisfied with the 35% bonus, which depends on the loyalty of the senior management, large fines up to 95%. At the head office of the company, the appeals and complaints of employees are not commented in any way.

Customer reviews about the provider "Rostelecom"

A huge number of reviews have been written about Rostelecom, among them there are both positive and negative ones. Among the advantages of the services provided by the provider, customers distinguish:

• favorable conditions and prices according to tariffs;
• stable wi-fi;
• in terms of television, they note the archive and a clear image.

In general, negative feedback from Rostelecom employees and consumers prevails. The predominance of negative opinions about this provider can be partly explained by the fact that, having not found understanding in the company's support service, a frustrated client is more willing to express his dissatisfaction. Consumers of Rostelecom services note a number of shortcomings.

• The quality of lines, maintenance and services is low.
• Service missing. Irresponsible attitude towards customers.
• Poor quality support and technicians.
• They don't deal with customer complaints.

Why are Rostelecom's customers dissatisfied?

Many customers note a very low Internet speed, often not at all corresponding to the one stated in the tariffs, constant departures, interruptions and disconnections of the Internet. The provider "Rostelecom", reviews of which are mostly negative, according to many consumers, misinforms customers. Receipts for payment are sent late, and then a penalty is charged. Often there are technical problems with the processing of consumer payments.

"Rostelecom Contact Center", reviews of employees and customers about which are very contradictory, also causes a lot of criticism. Consumers note that it is very difficult to get through to technical support, support service workers do not delve into the problem and try to quickly end the conversation, do not answer questions, use the same memorized phrases during negotiations, in addition, they pick up the phone at the workplace so that customers didn't bother with calls.

Clients of the Moscow region left negative feedback about Rostelecom, as the company did not conclude agreements with payment systems and terminals, which led to consumers incurring additional costs and experiencing inconvenience when paying for communication services. Unlike other telecom operators, Rostelecom does not activate home telephony services immediately after the payment is made, but only after three days.

Conclusion

A large number of negative reviews about Rostelecom are an alarming signal. Feedback from Rostelecom employees also reflects fears that the company is falling apart. It is extremely important for the company to take into account the opinions of ordinary employees, as they are the foundation of the organization.

The Russian telecommunications market is developing. In the future, the absorption of regional operators and small providers by larger corporations will continue. Companies that do not meet modern requirements, do not withstand competition, will either rebuild or disappear from the market.

Main article about the company: Rostelecom

2019

Growth in revenue by 5%, net profit - by 10%

In February 2020, Rostelecom presented its audited financial results. The company's revenue in 2019 reached 337.42 billion rubles, an increase of 5% compared to the previous year.

Growth was largely facilitated by the provision of digital services, note in Rostelecom. Annual revenues from broadband access services (BBA) to the Internet increased to 83.87 billion rubles from 80.04 billion rubles a year earlier. Television services brought Rostelecom 37.13 billion rubles, surpassing the result of a year ago of 34.46 billion rubles.

In the fixed telephony market in 2019, the operator earned 61.74 billion rubles. In 2018, revenue was higher and amounted to 69.99 billion rubles. The company earned 49.8 billion rubles from cloud and VAS services, while in 2018 these revenues were 36.9 billion rubles.

The number of the operator's subscribers increased in almost all sectors. The growth in the number of Internet users amounted to 2% (13.2 million by the end of 2019), pay TV users - by 3% (of which the number of Interactive TV subscribers increased by 6% to 5.6 million), virtual operator subscribers - 41% (up to 1.7 million). At the same time, the number of local telephone subscribers continues to decline: it fell by 10% and amounted to 15.7 million by the end of 2019.

The average revenue from one subscriber of broadband Internet services reached 402 rubles, an increase of 2%. In the pay TV segment, there was an increase of 2% to 255 rubles.

Among the areas that showed the greatest growth are information security (growth - 68%), data center services (50%), smart city projects (50%). In absolute indicators revenue from them made 3.7 billion, 10.8 billion and 34 billion rubles, told TAdviser in Rostelecom. The president of the company Mikhail Oseevsky in a conversation with TAdviser noted that especially good results in cybersecurity business were shown by the direction of solutions DLP which are used by a number of large customers, including Sberbank, the Russian Railway and Rosneft.

Rostelecom ended 2019 with a net profit of 16.47 billion rubles, which is 10% higher than a year ago. Net profit amounted to 4.9% of revenue against 4.7% in 2018.

Earlier, at the end of February, Tadviser wrote about the preliminary, unaudited financial results that Mikhail Oseevsky presented at a meeting of the Federation Council. They did not differ much from the audited ones: the announced revenue was more than 335 billion rubles, the profit was about 16 billion rubles. The company's OIBDA reached about 106 billion rubles, an increase of about 5% over the year.

Mikhail Oseevsky spoke at the 475th meeting of the Federation Council on February 26 (photo - Federation Council)

The volume of the investment program of Rostelecom in 2019 amounted to 100 billion rubles, of which 70 billion are the company's own funds and 30 billion are federal budget funds, Oseevsky cited the data.

The President of Rostelecom at a meeting of the Federation Council recalled that the company had recently acquired Tele2. With this in mind, Rostelecom at the end of 2020 will be the largest digital company in Russia with revenues of more than 500 billion rubles, Oseevsky said.

Speaking to the senators, Oseevsky noted that the company is rapidly transforming: from an operator, it is turning into a provider of digital services for individuals, businesses and the state. The main direction for Rostelecom now is the provision of services to citizens. First of all, it is broadband Internet access (BBA). The company invests a lot in this area, says Mikhail Oseevsky. According to his estimates, the company occupies 41% of the broadband access market.

And with the acquisition of Tele 2, the company will also be able to provide cellular services that will complement its range of services for citizens, Rostelecom expects.

Rostelecom also expands the range of services for citizens through smart home solutions and services. Every month, the company installs about 20,000 sets of such devices.

The second largest area is the provision of services to legal entities. In total, Rostelecom has more than 600,000 clients here, including the largest Russian companies, but, according to Oseevsky, a special priority is medium and small businesses, for which there are special solutions.

Next in terms of volume, in equal shares, are projects for the state and partners in the operator business. According to preliminary estimates based on management reports, interaction with telecom operators accounts for approximately 15% of Rostelecom's business.

Oseevsky stressed that one of the growth drivers for Rostelecom is participation in the Digital Economy national program. In three of its areas, the company plays an “exceptional role”: the direction of information infrastructure, where the government has appointed Rostelecom as a center of competence, public administration and information security.

Among recent infrastructure projects, Mikhail Oseevsky cited the laying of submarine cables to Sakhalin, Kamchatka, Magadan, the Kuril Islands, and now residents of these remote areas have the opportunity to use all the same products and services as other residents of the country. And in 2021, Rostelecom will start laying a cable to Chukotka.

Among other projects within the framework of the information infrastructure of the "Digital Economy" is the elimination of the digital divide, which involves providing Internet access to small settlements.

Data centers are an important area of ​​digital infrastructure, the president of Rostelecom noted: this is the brain of the digital economy. Rostelecom is the largest operator of such services, Oseevsky says: more than 25% of all information in the country is stored in Rostelecom's data centers.

The company is implementing a large-scale program for the construction of data centers throughout the country, and in the near future plans to complete the construction of data centers in the capitals of federal districts, and then move on to their creation in the capitals of other subjects of the federation. Data today should be as close as possible to users, emphasized Oseevsky.

As for the direction of information security, Mikhail Oseevsky calls Rostelecom the largest operator providing commercial services to the state and business in providing information security. Among his clients are a number of federal departments and major Russian companies. In 2019, more than 1 million attacks against customers and Rostelecom's own infrastructure were repelled. Four IS centers were established for round-the-clock monitoring. This is the fastest growing direction of the company, said the president of Rostelecom.

Investments in the Russian OS "Aurora" depreciated by a third

On June 19, 2019 it became known of write-off by Rostelecom of one third of investments into the Russian mobile operating system "Aurora". Read more.

2018: Revenue growth up to 320 billion rubles

Cloud services and value-added services were among the other areas that showed the greatest growth: it grew by 42%. A significant share of this direction is made up of various data center services. Thus, revenue from Virtual Data Center/IaaS services increased by 40%.

The main priority of the company, as he specified, will be the development of access in areas of mass housing development. At the end of 2018, it is planned to complete the laying of a submarine cable in the Far East and connect the Kuril Islands to the Internet.

• Revenue grew by 3% to 305.3 billion rubles. compared to 12 months of 2016;
• OIBDA increased by RUB 0.085 billion. up to 96.9 billion rubles. compared to 12 months of 2016;
• OIBDA margin was 31.7% compared to 32.5% in 12M 2016;
• Net profit increased by 15% to RUB 14.05 billion. compared to 12 months of 2016;
• Capital investments amounted to 60.8 billion rubles. (19.9% ​​of revenue), decreasing by 2% compared to the same period in 2016 (61.9 billion rubles and 20.8% of revenue for 12 months of 2016);
• FCF grew by 53% to RUB 20.4 billion. compared to 12 months of 2016, having improved by 7.1 billion rubles.

Credit rating AA(RU), outlook Stable

Kai-Uwe Mehlhorn, Senior Vice President and CFO: "We believe that this rating provides the company with additional opportunities to raise public debt financing, including to optimize our debt portfolio."

2016

In May 2017, the Board of Directors of Rostelecom approved the agenda of the annual general meeting of shareholders and made recommendations on dividends for 2016. At the meeting of shareholders, it was recommended to allocate a total of 15 billion rubles for the payment of dividends on ordinary and preferred shares, which is 113% of free cash flow and 122% of the company's net profit.

Dividends are proposed to be paid on preferred shares of type A - in the amount of 5.39 rubles per share, on ordinary shares - in the amount of 5.39 rubles per share.

The Board of Directors also determined the dates for compiling the list of persons entitled to participate in the General Meeting of Shareholders and receive dividends - May 25 and July 7, 2017, respectively. The general meeting of shareholders of the company will be held on June 19.

"The level of dividends proposed by the board of directors for approval by the general meeting of shareholders corresponds to the company's actual results achieved in the reporting period. This year, the company proposes to significantly increase the share of distributed free cash flow, thereby demonstrating its commitment to fulfilling the main principles of our dividend policy, namely to direct our shareholder more than 3/4 of free cash flow, but in any case not less than 45 billion rubles over 3 years, while not increasing the debt burden.We believe that the proposed level of 5.39 rubles per share allows maintaining a high dividend yield and, in general, is within the framework of the company's current policy," said Mikhail Oseevsky, president of Rostelecom.

Revenue 297 billion rubles

• Revenue increased by 91 million rubles. up to 297.4 billion rubles;
• OIBDA decreased by 4% to RUB 96.8 billion;
• OIBDA margin was 32.5% compared to 33.9%;
• Net profit decreased by 15% to RUB 12.2 billion;
• Capital investments amounted to 61.9 billion rubles. (20.8% of revenue) decreasing by 1% compared to the same period last year (62.7 billion rubles and 21.1% of revenue for 12 months of 2015);
• FCF amounted to 13.3 billion rubles. against 22.0 billion rubles.

• The share of the Digital segment in revenue was 44%;
• According to the results of 2016, the share of Rostelecom in new connections in the pay TV market was about 50% and in the broadband Internet market - more than 50%;
• Consistently high rates of growth in the subscriber base of broadband access in optical technologies (+17%) and IPTV (+24%);
• The B2B/G segment showed revenue growth of 2.5% yoy.

For 12 months of 2016, operating expenses net of depreciation increased by 2% compared to the same period in 2015 and amounted to RUB 202.0 billion. The dynamics were influenced by the following factors:

• a 5% increase (by RUB 2.3 billion) in expenses on services of telecom operators, including due to an increase in content costs caused by an increase in the number of pay TV subscribers;
• 11% decrease (by RUB 1.7 billion) in other operating income, mainly in terms of the project to bridge the digital divide; excluding reimbursement under the UCN project, the growth of other operating income amounted to 94%;
• a more than two-fold increase (by RUB 2.4 billion) in profit from the disposal of fixed assets, mainly due to the closing of a transaction to create a real estate sub-fund in the form of a joint venture with Sberbank;
• significant recovery of the allowance for doubtful debts in 2015;
• decrease by 1% (by RUB 0.7 billion) in personnel costs, mainly due to staff optimization.

2015: Decrease in revenue, profit growth

2014: Reducing net profit by 16% to 29.5 billion rubles

The net profit of the Russian operator Rostelecom for 2014 fell by 16.4%, from 35.3 billion to 29.5 billion rubles. Reporting data according to RAS (Russian accounting standards) testify to it, RBC reported in March, 2015.

In 2014, Rostelecom spent 46.1 billion rubles to pay off long-term liabilities, reducing their volume to 138.9 billion rubles. Instead, short-term liabilities increased by 29.7 billion rubles, to 53.7 billion rubles.

The company's revenue grew to 290.6 billion rubles, which is 2.3% higher than last year.

2013: Decrease in all main indicators

The company predicted that in 2013 net profit could reach 25 billion rubles, in 2014 - 40 billion rubles. The merger of Svyazinvest with Rostelecom will increase revenue by 1% in 2013 and 3% in 2014. Without the effect of the merger of Svyazinvest, Rostelecom forecasted revenue for 2013 in the amount of 327 billion rubles, OIBDA according to forecasts company in 2013 will amount to 120 billion rubles, and by 2016 it will increase to 150-160 billion rubles. By 2016, the company planned to increase revenue by 7%, up to 407 billion rubles.

When Rostelecom published its financial results for 2013 in March 2014, it turned out that the company's revenue did not meet the forecast and decreased by 2% to RUB 325.7 billion, OIBDA (operating income before interest on loans and depreciation expenses ) fell by 6% to 113 billion rubles. Operating profit decreased by 17% to 45 billion rubles. Net profit decreased even more - by 27% to 24 billion rubles.

In the fourth quarter of 2013, the company's net profit decreased by 62% compared to the same period in 2012, amounting to 1 billion rubles. The company explains this by one-time write-offs made due to the revaluation of the option to repurchase Rostelecom's 2.7% of its own shares from Deutsche Bank and RDIF, as well as the tax effect caused by the creation of provisions for doubtful debts of Sky Link (cellular subsidiary Rostelecom). Capital investments for the year decreased by 27% to 68.5 billion rubles.

Of the types of business, long-distance communications and channel leasing were the worst performing. Revenue from each of these two areas in 2013 decreased by 17% and amounted to 17.1 billion rubles. and 9.5 billion rubles. respectively. Revenues from zonal communications continue to fall: they decreased by 13% to 17 billion rubles.

By 5% - up to 38.9 billion rubles. - Revenue from mobile communications fell. At the same time, the net loss from cellular communications in 2013 increased almost 7 times to 2.5 billion rubles. The operating loss from this area amounted to 366 million rubles. (a year earlier, operating profit amounted to 1.35 billion rubles). At this time, Rostelecom is in the process of transferring its cellular business to a joint venture with Tele2.

The most profitable business of Rostelecom remains local telephony - 87.5 billion rubles (decreased by 2%). The fastest growing segment is pay TV: growth was 29%, revenue reached 11.7 billion rubles.

Revenue from transmission of inter-operator traffic increased by 13% to 24.5 billion rubles, from broadband Internet access - by 9% to 56 billion rubles. Cloud services grew by 10% to 23 billion rubles.

If we consider income by types of clients, then revenue from government customers decreased by 16% to 45 billion rubles, from corporate clients, on the contrary, increased by 4% to 74 billion rubles. Income from individuals and other telecom operators remained virtually unchanged, amounting to RUB 165 billion, respectively. and 40 billion rubles.

The number of fixed-line telephone subscribers of Rostelecom continues to fall: over the year it decreased by 6% to 26.5 million. The number of users of broadband Internet access, on the contrary, is growing: over the year it increased by 12% to 10.6 million. 62% are connected via xDSL technologies, 38% - via FTTB. The number of cellular subscribers increased by 9% to 14.8 million (growth was due to the Urals and Siberian regions).

The number of pay TV subscribers grew by 12% to 7.5 million, of which 71% are cable TV users, 29% are IPTV users.

2012: Growth of revenue for 7% to 321 billion rub

The Group's revenue for 2012 amounted to RUB 321.3 billion. and increased by 7% compared to 2011. The revenue structure changed in favor of growing segments, including, among other things, mobile communications, broadband access, pay TV. OIBDA margin was 36.9%, reflecting the effects of the active development of the mobile business in the regions where 3G+ networks are being built in Q4 2012, the increase in the share of fast-growing but less profitable than traditional revenue segments, the creation of employee compensation reserves within 20 % optimization of administrative personnel planned for 2013. Net profit for 2012 amounted to 35.2 billion rubles. Net debt as of December 31, 2012 amounted to RUB 203.1 billion. In 2012, the total debt of OJSC Rostelecom increased by 24%, amounting to 214.4 billion rubles.

2011

Results of the year: voice telephony - 58% of revenue

Rostelecom's revenue for 2011, determined in accordance with Russian Accounting Standards (RAS), amounted to 296 billion rubles. Net profit of Rostelecom in 2011 amounted to 46.1 billion rubles, consolidated revenue amounted to 296 billion rubles.

Revenue structure:

• voice telephony services - 58% of all company revenues - more than 124 billion rubles.
• data transmission services - 23% of revenue (more than 49 billion rubles).
• cellular communication services - 5.1% (about 10 billion rubles)
• provision of communication channels for use - 4.5% (approximately 9 billion rubles).
• services of television and radio broadcasting, satellite and radio communications - 1.5% (slightly more than 3 billion rubles).

Rostelecom's e-government revenue more than doubled in 2011, by 132%. In the structure of its revenue, this direction takes less than 1%.

Operating profitability is also growing - in 2010 it was around 5%. Rostelecom expects that the profitability of this area will be at the level of its other businesses, says the representative of the operator Kira Kiryukhina.

In terms of profitability, e-government is comparable to international and long-distance communications, a source in the company knows. For projects of this type, 20% is the usual yield, says Sergey Matsotsky, CEO of the IBS system integrator. And for the founder of the Lanit system integrator, Georgy Gens, such profitability under a government contract for an IT project “seems like a fairy tale”: competition has now intensified and the margin has decreased as a result. Apparently, the operator part brings the main profit in this contract to Rostelecom, he suggests.

However, it is not clear how Rostelecom was able to allocate from its costs those that relate specifically to e-government contracts, an employee of another integrator is surprised and considers this figure to be “paper”.

9 months: Net profit growth by 2%

Net profit of Rostelecom under IFRS for 9 months of 2011 increased by 2% to 29.397 billion rubles. from 28.885 billion rubles. compared to the same period in 2010. Revenue increased by 7% to RUB 217.458 billion. from 203.287 billion rubles. OIBDA increased by 5% to RUB 85.517 billion. from RUB 81.525 billion, OIBDA margin was 39.3%.

First half of the year: growth of net profit by 6 times

According to the information and retrieval system DataCapital, Rostelecom's net profit under RAS in the first half of 2011 grew 6.23 times to RUB 13.939 billion. from 2.233 billion rubles. for the same period in 2010. Revenue increased 2.8 times to RUB 79.875 billion. from 28.467 billion rubles, profit from sales - by 4.91 times to 15.763 billion rubles. from 3.209 billion rubles.

2010

Ranking second in terms of revenue in the telecommunications industry at the end of the year

Unaudited consolidated revenue of the merged Rostelecom under IFRS in 2010 amounted to 275.7 billion rubles. ($9.05 billion at the exchange rate of the Central Bank on December 31, 2010).

Net profit - 40.8 billion rubles. ($1.34 billion).

This is the company's first report since, on April 1, 2011, it was joined by seven interregional communications companies (RTOs) and Dagsvyazinform, which were previously controlled by Svyazinvest. This reporting will become the basis for comparing the results that will be shown in 2011 by a single company, the representative of Rostelecom explained.

In terms of revenue for 2010, the merged Rostelecom outstripped Megafon, which in 2010 earned 215.5 billion rubles. And if we take into account only Russian operations, then Rostelecom was ahead of VimpelCom, losing only to MTS, whose Russian revenue amounted to 286.4 billion rubles. Nevertheless, the combined company's OIBDA margin turned out to be worse than that of the Big Three operators - 40.2%. For Russian operations of MTS, this figure was 43.4%, for MegaFon - 45.4%, and for VimpelCom - 46.2%. Compared to the Big Three operators, Rostelecom's share of the mobile business is small, and the margin of the fixed business is much lower, explains Evgeny Golosnoy, an analyst at Troika Dialog. For a company that mainly deals with fixed-line communications, 40.2% is a good indicator of profitability, he said. Moreover, the tariffs for part of Rostelecom's services are regulated by the state, reminds Golosnoy.

In 2010, the merged Rostelecom received 32 billion rubles from the mobile business. revenue, which is only 11.6% of the company's total revenue. The Big Three operators, on the contrary, still earn most of their revenue from mobile communications: MTS in Russia has this share of 82.7%, VimpelCom has 83.6%, and MegaFon has 96.5 %.

Financial indicators for the third quarter

Revenue was RUB 15.8 billion, including revenue from new and additional services, up 16% to RUB 5.8 billion (37% of revenue compared to 32% in the third quarter of 2009);

Adjusted OIBDA (net of accrual of non-cash expenses under the long-term incentive program for employees in the amount of RUB 461 million) amounted to RUB 3.2 billion; OIBDA margin 20.3%;

Net profit, adjusted for non-cash accrual of expenses under the long-term incentive program for employees, amounted to 1.4 billion rubles.

Capital investments amounted to 2.8 billion rubles. (17.5% of revenue)

Key financial indicators for the nine months of 2010:

Revenue amounted to 45.8 billion rubles, including income from new and additional services, which increased by 10% to 16.5 billion rubles (36% of revenue compared to 31% in the nine months of 2009);

Adjusted OIBDA (net of accrual of non-cash expenses under the long-term incentive program for employees in the amount of RUB 461 million) amounted to RUB 9.0 billion; OIBDA margin increased to 19.7%;

Net profit, adjusted for the accrual of non-cash expenses under the long-term incentive program for employees, amounted to 3.3 billion rubles.

Capital investments amounted to 7.7 billion rubles. (16.9% of revenue)

The capitalization of the company as of November 2010 is 120.5 billion rubles.

Q1: Sharp drop in revenue

In the first quarter of 2010, Rostelecom's RAS revenue fell by 8.2% compared to January-March 2009 to RUB 14.1 billion, the operator said. This is the largest drop in at least five years, says Veles Capital analyst Ilya Fedotov. The reason is a decrease in income from its traditional long-distance communication (in 2009 it provided 71.4% of Rostelecom's revenue). Traffic goes to the networks of cellular operators, admits an employee of the press service of Rostelecom.

Until 2006, all operators were required to send long-distance and international calls through the Rostelecom network, but then other operators began to receive licenses for the right to provide these services on their own. Now there are about 20 of them, including MTS, VimpelCom and Megafon.

At first, the expansion of the "big three" was held back by the absence of main canals. They had to be rented from Rostelecom, MTT, Transtelecom, and calls were expensive. But in 2008, VimpelCom acquired Golden Telecom with a powerful cable network, and MTS and MegaFon began to build their own networks. As a result, mobile intercity and calls abroad have significantly fallen in price.

2008: Revenue of 66 billion, net profit - 7 billion rub

• Revenue - 66.6 billion rubles. (2008, IFRS)
• Net profit - 7 billion rubles.

Mar 03, 09:03 Aeroflot, Apple, US indices: what quotes to follow today What will determine the situation on the stock exchanges on Tuesday, March 3, and what assets should an investor pay attention to - read in the morning review of RBC Quote

Jan 10, 03:46 PM 2020 in the game: how the gaming and esports industry will change Business giants are investing more and more money in computer sports and games. Earnings of companies in this sector are growing multiple every year. What will be the games of the future and how much can you earn on them?

12 Nov 2019, 17:52 Mobile communications predicted price increases. What does this mean for operator shares Cellular tariffs will rise by 10-25% in 2020, media reported. Due to this, the income of cellular operators can grow. The editors of RBC Quote asked analysts how the quotes of Rostelecom, MTS and Veon would react

08 Nov 2019, 06:14 RTKM Buy ₽100 (+26.28%) Forecast 17 Oct 2020 Go to date Promsvyazbank Analyst 74% Reliability of forecasts Rostelecom increased its net profit and revenue. The company increased the number of its subscribers and sold 116,000 surveillance cameras

04 Sep 2019, 15:06

02 Sep 2019, 15:31 Television for money: when Russians will start disconnecting from cable TV By 2023, 3 million Russians will give up pay TV. In the studio of the RBC TV channel, experts discussed how much subscribers are willing to pay for films and series and how to keep the viewer at the screen in 2019

02 Aug 2019, 15:01 RTKM Buy ₽82 (-0.36%) Forecast 02 Aug 2020 Go to date Aton Analyst 57% Reliability of forecasts The telephone operator Rostelecom improved its results in the second quarter and raised its forecasts for 2019. The company increased its performance due to the digital segment - VPN services and intercom connection. Shares fell

08 Jul 2019, 18:54 RTKM Buy ₽87 (+9.16%) Forecast 01 Nov 2019 Go to date UBS Analyst 57% Reliability of forecasts Possible interim dividends and the issue of new shares raised the price of Rostelecom's shares. Over the past three months, quotes have added 8%. Analysts expect Rostelecom shares to continue to grow

04 Jul 2019, 10:19 RTKMP Buy ₽80 (+27.08%) Forecast May 15, 2020 Go to date VTB Capital Analyst 52% Reliability of forecasts Rostelecom proposed to create a sky surveillance system throughout Russia. Such a system will cost taxpayers ₽400 billion. Analysts assessed whether it is worth buying Rostelecom shares in anticipation of a major contract

Jun 18, 2019, 06:53 PM RTKMP Buy ₽82 (+29.24%) Forecast May 14, 2020 Go to date Aton Analyst 57%