Rostelecom's Q2 revenues grow 9% to 179.3 bln rubles

MOSCOW. Aug 14 (Interfax) - PJSC Rostelecom had second quarter IFRS revenue of 179.3 billion rubles, a 9% increase versus the same period in 2023, the company said.

OIBDA increased 15% to 72.8 billion rubles, while OIBDA margin decreased to 40.6% from 38.4%.

Mobile business, as well as the promotion of complex digital products in the B2B/G segment were the main source of revenue in the second quarter, the company said.

Net profit in the second quarter totaled 13.6 billion rubles, a 43% increase. Operating profit grew 24% to 30.8 billion rubles.

Operating expenses increased 6% in the second quarter to 148.5 billion rubles. These dynamics were influenced primarily by a 20% increase in personnel costs due in part to an increase in the number of employees in digital clusters and the indexation of employee remuneration, a 10% increase in depreciation charges and losses from impairment of non-current assets, and some other factors, the company said.

Capital investments grew 31% to 35.4 billion rubles (19.8% of revenue).

Free cash flow (FCF) decreased 6.2-fold in Q2 to 3.3 billion rubles versus 20.6 billion rubles in Q2 2023. "The dynamics of free cash flow in the first quarter of 2024 were determined by the restoration of investment activity and a growth in interest payments," the company said.

Net debt, including lease liabilities, increased 3% since the start of the year to 582.4 billion rubles. The net debt/OIBDA ratio was 2.0x, same as in Q2 2023.

The total debt of the group of companies as of June 30, 2024 (including lease liabilities) grew 3% from the start of the year to 640.9 billion rubles, with 100% of the total debt being ruble liabilities.