August 2, 2018 / 10:40 AM / in 3 months

Russia's Rostelecom says earnings rise as mobile JV turns profit

MOSCOW, Aug 2 (Reuters) - Russian state-controlled telecoms operator Rostelecom said on Thursday its second-quarter net profit grew 9 percent year on year:

* Net profit totalled 3.094 billion roubles ($49 million) compared with 2.826 billion roubles in the second quarter of 2017.

* The company said earnings growth was helped by improved financial results at its mobile joint venture with Tele2 Russia and lower finance costs.

* Tele2 Russia said on Wednesday it had made a net profit of 1.0 billion roubles in Q2 after a 1.5-billion-rouble net loss a year earlier.

* Rostelecom’s revenue in the second quarter increased 3 percent to 77.365 billion roubles thanks to a higher number of pay-TV and broadband internet users as well as cloud service sales.

* Operating income before depreciation and amortisation (OIBDA) fell 4 percent to 23.659 billion roubles, partly due to expenses incurred in connection with the company’s soccer World Cup sponsorship contract.

* OIBDA margin fell to 30.6 percent from 32.7 percent a year ago.

* The company confirmed its 2018 guidance for revenue growth of more than 2 percent, for OIBDA margin of more than 31.5 pct and for capital expenditure of 60 bln-65 bln roubles excluding government programmes.

* Shares in Rostelecom were up 1.43 percent by 1022 GMT at 72.57 roubles, outperforming a broader market index. (Reporting by Anastasia Teterevleva and Maria Kiselyova; Editing by Kirsten Donovan)

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