REG-Rostelecom OJSC ROSTELECOM ANNOUNCES ITS IFRS FINANCIAL AND OPERATING RESULTS FOR THE FOURTH QUARTER AND FULL YEAR OF 2015 <Origin Href="QuoteRef">RTKM.MM</Origin>

Rostelekom PAOAnnouncement

14/03/2016 11:10

      ROSTELECOM ANNOUNCES ITS IFRS FINANCIAL AND OPERATING RESULTS FOR THE       FOURTH QUARTER AND FULL YEAR OF 2015    
ROSTELECOM ANNOUNCES ITS IFRS FINANCIAL AND OPERATING RESULTS FOR THE       FOURTH QUARTER AND FULL YEAR OF 2015
Free Cash Flow rose to RUB 22.0 billion with net profit growing by       9% y-o-y to RUB 14.4 billion
Moscow, Russia  March 14, 2016 - Rostelecom PJSC (MOEX: RTKM,       RTKMP; OTCQX: ROSYY), Russias national telecommunications operator,       today announces its consolidated financial results for the fourth       quarter and the full year of 2015 prepared in accordance with IFRS1.    
KEY ACHIEVEMENTS
        Revenue, OIBDA margin and CAPEX to revenue ratio are in-line with         Managements guidance for 2015;      
        The digital segments2 contribution to total revenue         exceeded 40%;      
        Total fibre optic network coverage reached 30.7 million households by         the end of 2015;      
        Net profit increased by 9% year-on-year to RUB 14.4 billion;      
        FCF3 amounted to RUB 22.0 billion in 2015.      
FULL YEAR 2015 FINANCIAL HIGHLIGHTS
        Revenue of RUB 297.4 billion compared to RUB 298.9 billion in 2014;      
        OIBDA amounted to RUB 100.8 billion compared to RUB 102.5 billion in         2014;      
        OIBDA margin of 33.9% compared to 34.3% in 2014;      
        Net profit increased by 9% year-on-year to RUB 14.4 billion;      
        CAPEX increased by 17% to RUB 62.7 billion (21.1% of revenue) from RUB         53.8 billion (18.0% of revenue) in 2014; CAPEX excluding the Bridging         the Digital Divide project amounted to RUB 59.5 billion (20% of         revenue);      
        FCF amounted to RUB 22.0 billion compared to RUB 27.3 billion in 2014.      
Sergei Kalugin, President of Rostelecom, commented:    
Rostelecom made good progress with the delivery of its strategy in       2015. Having reached nearly 31 million households passed, Rostelecom is       nearing the conversion of its last mile network to fibre optic, which       means that the bulk of our CAPEX commitment to this capital-intensive       project is almost fulfilled. We also launched our first OTT solution,       which allows users to access our content proposition, irrespective of       the internet provider they use. Furthermore, the introduction of our new       customer care standards have led to remarkable improvements in the       overall quality of our services.
Last year, Rostelecoms Board of Directors approved some amendments       to our Groups strategy, which identified our most promising and       fast-growing segments. We are determined to build our presence in these       segments, which include data centres, cloud services, OTT video, geodata       and IIoT.
In December, we presented to the investment community our       achievements to date and our strategic business plan that will take us       to 2020. This is all part of our drive to improve Rostelecoms       investment case, which has been further strengthened by the adoption of       a new dividend policy, which sets out the FCF pay-out ratio at no less       than 75% but not less than RUB 45 billion cumulatively for three years.
We continue to develop our business in line with market demands and       customer needs, offering new digital services and products. 2016 will       see the nationwide launch of a 4-Play offering. In addition, Rostelecom       will undergo a transformation, which will include the implementation of       innovative management tools as well as the development of its own       production system.
Our focus on enhancing internal efficiencies, implementing innovative       solutions in business development and building our digital offering is       making Rostelecom a truly customer-focused service company. These       improvements will contribute to the growth of the Companys fundamental       value and it maximises free cash flow, the bulk of which Rostelecom       plans to distribute as dividends.
      A copy of the press release is available on the Investor Relations       section of Rostelecoms website at http://www.rostelecom.ru/en/ir/results_and_presentations/financials/IFRS/2015/       .    
OTHER INFORMATION: CONFERENCE CALL
      Rostelecoms management will hold a conference call and webcast today at       6.00PM (Moscow), 4.00PM (CET), 3.00 PM (UK) and 10.00 AM (NYT). To       participate in the conference call, please dial:    
      Russia: + 7 495 213 0978    
      UK/ International: + 44 (0) 20 3427 1919    
      USA: + 1 646 254 3366    
      Access code: 6437056    
      A webcast of the conference call will be available at http://www.audio-webcast.com/cgi-bin/visitors.ssp?fn=visitor&id=3335.    
      A replay of the conference call will be available on the Companys       website: http://www.rostelecom.ru/en/ir/results_and_presentations/financials/IFRS/       in due course.    
      * * *    
Certain statements in this press release are forward-looking       statements within the meaning of the U.S. federal securities laws and       are intended to be covered by the safe harbors created thereby.
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.
Many of these factors are beyond the Companys 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 after the date hereof or to reflect the occurrence of       unanticipated events, except as may be required under applicable laws.
1 International financial reporting standards    
2 The digital segment comprises broadband, pay-TV, VPN, VAS       and cloud services    
3 Here and below, FCF is calculated as free cash flow from       operating activity minus CAPEX, plus proceeds from selling fixed assets       and intangible assets    
View source version on businesswire.com: http://www.businesswire.com/news/home/20160314005525/en/
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