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Svyazinvest posted H1′08 results,net profit up by 6.5% (Russia)

  • August 19th, 2008
  • 8:04 am

According to a media report, Svyazinvest says that the former monopoly operator now faces substantial competition in the domestic and international long-distance markets and should be excluded from the list of operators which have tariffs set by the state. Rostelcom who have lost its monopoly on long-distance calls in 2006, ever since then more than 30 firms have been licensed to compete against it. Svyazinvest further says that tariff regulation ‘places the operator in unequal conditions compared with other market players’.

Svyazinvest has also posted its financial results for the first half of 2008. Net profit rose by 6.5% to $721.9 million, while revenues were up 3.9% at RUB123.70 billion and pre-tax profits climbed 3.1% to RUB23.39 billion. EBITDA were up 9.8% year-on-year at RUB44.59 billion. Apart from Rostelecom, it also holds stakes in Russia’s seven mega-regional local telephony firms.

Rostelecom reports rise in net profit while revenue stays stable (Russia)

  • August 6th, 2008
  • 6:28 am

Rostelecom, Long-Distance operator had former monopoly in domestic and international operator in Russia. Rostelecom  shows an annual increase of 6.2% in the first-half net profit to $212 million. Revenues for the period were stable at RUB30.6 billion, while operating profit climbed 16.1% year-on-year to RUB6.3 billion. Rostelecom is a part of the state-backed telecoms holding company Svyazinvest.

Svyazinvest mulls wireless sale (Russia)

  • June 27th, 2007
  • 7:33 am

Russia’s state-backed telecoms holding group Svyazinvest is considering the sale of its mobile assets, although the move is likely to be blocked by some shareholders. A report from Cnews quotes Svyazinvest director general Alexander Kiselev, who says: ‘Not having a licence for the 3G mobile network, our mobile assets have no prospects in the market; that is why they should be sold.’ He believes that the peak market value will be reached within the next eighteen months, with analysts estimating the combined sale price at between USD1.5 billion and USD3 billion.

Svyazinvest is Russia’s largest fixed line operator, offering services via seven mega-regional subsidiaries plus long-distance arm Rostelecom. Four of the regional operators – Volgatelecom, Sibirtelecom, Uralsvyazinform and Dalsvyaz – also provide GSM cellular services, although their combined subscriber base of just over ten million represents only around 6.5% of the total Russian mobile market. Local press reports claim the country’s second largest cellular operator by subscribers, Vimpelcom, is interested in acquiring the mobile assets of Dalsvyaz, while the Volga regional operator SMARTS is linked with the Volgatelecom GSM networks.

The move to sell off the cellular networks may run into opposition from other shareholders though. The Sistema group, whose 51% subsidiary Comstar UTS holds a blocking stake of 25% plus one share in Svyazinvest, has suggested that the mobile assets should be merged into a single operation which can then enlarge its footprint via wholesale network sharing deals or through spectrum acquisitions. Three firms have national 3G concessions in Russia – Vimpelcom, MTS and MegaFon.

   

Svyazinvest mulls wireless sale

  • June 26th, 2007
  • 1:31 pm

Russia’s state-backed telecoms holding group Svyazinvest is considering the sale of its mobile assets, although the move is likely to be blocked by some shareholders. A report from Cnews quotes Svyazinvest director general Alexander Kiselev, who says: ‘Not having a licence for the 3G mobile network, our mobile assets have no prospects in the market; that is why they should be sold.’ He believes that the peak market value will be reached within the next eighteen months, with analysts estimating the combined sale price at between USD1.5 billion and USD3 billion.

Svyazinvest is Russia’s largest fixed line operator, offering services via seven mega-regional subsidiaries plus long-distance arm Rostelecom. Four of the regional operators – Volgatelecom, Sibirtelecom, Uralsvyazinform and Dalsvyaz – also provide GSM cellular services, although their combined subscriber base of just over ten million represents only around 6.5% of the total Russian mobile market. Local press reports claim the country’s second largest cellular operator by subscribers, Vimpelcom, is interested in acquiring the mobile assets of Dalsvyaz, while the Volga regional operator SMARTS is linked with the Volgatelecom GSM networks.

The move to sell off the cellular networks may run into opposition from other shareholders though. The Sistema group, whose 51% subsidiary Comstar UTS holds a blocking stake of 25% plus one share in Svyazinvest, has suggested that the mobile assets should be merged into a single operation which can then enlarge its footprint via wholesale network sharing deals or through spectrum acquisitions. Three firms have national 3G concessions in Russia – Vimpelcom, MTS and MegaFon.

   

Profit up 35% at Svyazinvest

  • June 5th, 2007
  • 6:46 am

Russia’s state-backed telecoms giant Svyazinvest has reported a 35.5% increase in net income for the first three months of 2007. Profits rose to RUB8.95 billion (USD345.7 million), while revenues for the period jumped 14.5% year-on-year to RUB58.6 billion. The bulk of sales came from public telecom services in the fixed line market. Internet access brought in RUB3.9 billion and mobile services accounted for RUB3.3 billion.