Rostelecom's Q1 earnings shrink 48% to 1 bln rubles
MOSCOW. May 7 (Interfax) - Rostelecom's net profit to Russian Accounting Standards (RAS) shrank 48% year-on-year in Q1 2010 to 1.209 billion rubles, the long-distance provider said in a statement.
Sales revenue fell 8.2% to 14.1 billion rubles.
The main reason for the decrease in sales revenue was declining returns from several traditional segments, the company said. Rostelecom's main business is providing intercity and international telecommunications services. At the same time, the company increased revenue from hi-tech communications services and, consequently, their share in total sales revenue," the statement said.
The share of revenues from data transfer and telematics services, as well as intellectual network services, increased to 12.6% of total sales revenue. The company's revenues from data transfer and telematics (the bulk of which was for the Internet and VPN) increased by 15% to 1.494 billion rubles
The company's expenditures decreased by 5.1% to 12.425 billion rubles.
The company's OIBDA went down by 12.4% to 2.963 billion rubles while its OIBDA margin came to 21% in comparison with 22% in the first quarter of 2009.
Rostelecom's profit from sales in the first quarter decreased by 26.3% to 1.683 billion rubles.
The company posted losses from rate changes totalling 414.5 million rubles against profit coming to 419.1 million rubles a year previous.
The company's pretax profit decreased by 49.9% to 1.245 billion rubles.
The company's long-term debts since the start of 2010 decreased by 2.5% to 5.9 billion rubles while short-term debts slipped by 0.6% to 8.77 billion rubles.