TransTelecom posts 1 bln rubles in IFRS net profit for 2011 compared to previous year's losses
MOSCOW. Aug 9 (Interfax) - OJSC Russian Railway's telecom subsidiary, CJSC TransTelecom, closed 2011 with 1 billion rubles in net profit according to international financial reporting standards (IFRS) in contrast to 60 million rubles in net losses posted for 2010, the company said in its materials.
However, the company's sales revenue decreased by 5% to 24.8 billion rubles last year, the company said.
OIBDA increased by 31% to 4.3 billion rubles while the OIBDA margin came to 17.5%, up from 12.7% in 2010.
TransTelecom's capex in 2011 came to 6.2 billion rubles, which counts for 25% of sales revenue.
The company's net debt for 2011 came to 7 billion rubles.
RZD owns 100% in TransTelecom. The telecom is a trunk telecom operator with over 75,000 kilometers in fiber-optical lines. TransTelecom provides reserves to RZD's enterprises, as well as services on inter-operator and corporate markets. The company also provides services to individual clients. Regional telecom subsidiaries are now being consolidated at TransTelecom.
RZD approved the telecom's strategy until 2015 in 2011, according to which TransTelecom should become a vertically integrated company, counting for 15% of the regional broadband market and becoming one of the top-five universal telecom providers in Russia. The telecom's total investments until 2015 should come to 43 billion rubles. Sales revenue should increase by 10% a year, reaching 43 billion rubles by 2015.
RZD is considering the privatization of TransTelecom. Presale preparations might take around two years, RZD president Vladimir Yakunin earlier said.
