Page 158 - RusRPTJun21

9.2.8 Telecoms corporate news
Rostelecom reported 1Q21 IFRS results on May 13. Revenues came in at R163.0bn, up 8.5% y/y. Mobile service revenues expanded 12.5% y/y to R46.1bn, underpinned by higher internet data consumption. Broadband revenues were up 9.3% y/y to R24.2bn (versus 7.9% growth in 4Q20). Digital services revenue growth slowed to 13.0% y/y due to the postponement of some regional and cyber security projects. The B2B/G segment thus recorded revenues of R73.3bn, up 12% y/y (versus 48% growth in 4Q20). EBITDA expanded 17.7% y/y to R55.4bn, with the margin improving 3.3 pp, albeit mainly thanks to a provision release. Excluding this, EBITDA was up 12.2% for a 41% margin (broadly flat y/y). Net income was R11.8bn. For 1Q21, capex net of state programs totaled R27.2bn, or 20.6% of revenues, up from 18.0% in 1Q20. FCF came in at R2.0bn (up from negative R6.4bn in 1Q20), due to lower repayments of accounts payable compared to 1Q20. Net debt/LTM EBITDA including leases was 2.3, down from 2.7 in the year-ago period. The company reiterated its 2021 guidance for at least 5% growth in revenues and EBITDA, with capex of R110-115bn (excluding state programs).
9.2.9 Tourism corporate news 9.2.10 Utilities corporate news
RusHydro released the following Board decisions on Friday 28 May:
· The FY20 dividend recommendation is RUB 23.3bn, giving a 50% payout of IFRS net income and DPS of RUB 0.053. The record date was set for 10 July.
· In line with the management comments, the Board has approved the prolongation of the current dividend policy for six years (a 50% payout and with a three-year average dividend floor): "this aims to improve the consistency and transparency of dividend payments to shareholders, as dividend yields remain one of the key factors of investment attractiveness.”
· The Board has approved the updated Strategy, that envisages EBITDA more than doubling by 2035 and dividends growing. It also focuses on ESG-friendly initiatives: modernisation in the Russian Far East, the conversion of coal-fired capacities to gas (if possible); renewables projects; a decrease in GHG emissions of 9% by 2035, reductions in grid losses (to 7.5%) and heat losses (to 16%); and the expansion of an EV charging system.
We see the dividend news as expected, with the 50% payout and a 6.5% dividend yield implied for 2020. The prolongation of the dividend policy was also expected after management’s comments (see our RusHydro – 1Q21 IFRS; stepping stone to 8% yield, of 27 May) and the aim to keep the
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