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Telecom
August/September 2018 www.intellinews.com I Page 19
unlimited data, users get 500 minutes for RUB650/ month and 800 minutes for R800/month. We think MTS is aiming to increase ARPU and is de facto simplifying its tariff structure,” Sberbank added.
The market leader MTS has also responded with a simplified data offering that feature generous data offers but has a complicated tariff structure.
“For example, in Moscow, MegaFon offers 600 minutes and 15 GB for RUB600/month, while
unlimited data traffic is included for music, mes- sengers, social networks and MFON TV. The offer for RUB750/month is even more generous: 750 minutes, 20 GB, unlimited traffic for music, mes- sengers, social networks and video. We think that high data allowances in such tariff plans already bring them close to unlimited data consumption patterns. So what MTS has done has simplified its tariff structure by offering 'pure' unlimited data,” says Sberbank.
Russia's Rostelecom posts mixed results for second quarter, Tele2 JV goes into profit
Russian integrated telecom major Rostelecom reported mixed results, with second-quarter revenues of RUB77.4bn up by 3% year-on-year, Oibda down 3.8% y/y to RUB23.7bn and a mixed outlook for the future, the company said.
Aton Equity said the outlook for the company is confused, attributing lower earnings to an uptick in other operating expenses.
"The latter was partially due to equipment supplies for B2B and B2G projects, increased option programme-related expenses and higher impairment losses on financial assets (+94% y/y)," Aton wrote in a note, adding that "greater D&A costs and impairment losses as a result of new IFRS regulation’s implementation also boosted expenses."
While Rostelecom's performance of the major segments remained strong, wholesale services as well as VAS and Cloud Services growth decelerated. However, "encouraging Tele2 results are evidence that Rostelecom’s business
is growing and its profitability is improving," Aton argued.
Rostelecom operates Russia's fourth largest mobile operator in joint venture with Tele2. The mobile virtual network operator with Tele2 reached 1mn clients soaring by 107% y/y after 292% y/y advance in the first quarter.
Tele2 became profitable in the reporting quarter and recorded a net profit of RUB1bn, while continuing to decrease leverage (net debt to Ebitda fell to 3.3x as compared to 5.4x a year ago). "The operating results were also strong, indicating customer base expansion (+4% y/y), an ARPU increase of 13.3% to RUB282, and the number of active mobile internet users growing (31%)," Aton noted.
Rostelecom reiterated its top-line expansion guidance for 2018 and currently anticipates "more than 2%" revenue growth for 2018, while also reiterating the Oibda margin (above 31.5%) and capex (RUB60bn-RUB65bn) targets.