Page 114 - RusRPTApr20

Sberbank Group’s cloud platform, SberCloud, has agreed on a strategic partnership with tech giant Huawei that will provide the Chinese company access to SberCloud.Advanced for Russian and foreign users, Interfax reported Tuesday. “The uniqueness of the SberCloud.Advanced products on the Russian market is its focus on supporting native cloud applications based on micro-services architecture. This exclusive offer on the market consists of interrelated cloud service, complementing each other, which provides clients with a unified convenient approach of using these services, diversity of most updated IT platforms, as well as a wide product range and most advanced IaaS/PaaS solutions on the Russian market,” says SberCloud’s CEO Yevgeny Kolbin. “The target audience of SberCloud is the B2B market, from the large business of small startups,” he noted.
9.2.8 Telecoms corporate news
Russian mobile major Mobile TeleSystems (MTS) has reported its 4Q19 IFRS results, with revenues up 4% year on year to RUB127bn ($1.74bn), the key driver being service revenues n Russia (3.3% gain y/y). The company's Ebitda was up 1% y/y to RUB52bn, making a 42% margin. Following the recent sale of its Ukrainian division, net profit halved to RUB5.5bn due to the one-off loss of RUB4.5bn on discontinuing the operations. At the same time, the consolidation of MTS Bank continued to support the parent with a 44% y/y gain in banking and fintech revenues. As reported by bne IntelliNews, MTS is Russia's most valuable telecom brand and at the end of 2019 it presented a new strategy, called CLV 2.0 (customer lifetime value), which will replace the previous 3D strategy (data, digital, dividends). The company guides for its 2020 revenues to grow 3% y/y, with Ebitda at least flat, and capex of RUB90bn (RUB83bn in 2019).
9.2.10 Utilities corporate news
President Vladimir Putin has approved the consolidation of Rosseti (Russian Grid) and Federal Grid Company (FSK). According to the plan, within the next three months FSK is to pass its executive management and treasury management functions over to the CEO of Rosseti. The consolidation of the shares is still a work in progress, with both the scenario of a mandatory FSK share conversion and an additional share issue of RSTI, with the possibility of payment using FSK shares, being discussed. Since its creation in 2007, Rosseti has been tasked with privatising individual interregional distribution companies (MRSKs) and subsequently dissolving them. Since then, Rosseti has lacked any meaningful operational cash flows, has spent most of the received dividends from subsidiaries on financing less financially sound MRSKs, and generally has traded with a significant discount to the sum of its parts. Consolidation, if realised in full with the move to a single share, would change this situation. Rosseti would become a company with substantial operational and free cash flow under control, and the capacity to enact a notable increase in RSTI dividends, and to narrow the discount to its sum of the parts valuation significantly, as FSK accounts for 25% of the holding group’s revenues, 48% of EBITDA, 50% of FCF and 40% of capex. However, the attractiveness of this scenario for FSK shareholders clearly depends on, which consolidation scheme is chosen and the swap ratios offered.
Russian utility major Unipro has reported 4Q19 IFRS results, showing 2%
114 RUSSIA Country Report April 2020 www.intellinews.com