Rostelecom OJSC: Rostelecom Reports RAS Net Profit of RUB 32.0 Billion for the Nine Months of 2012

  Rostelecom OJSC: Rostelecom Reports RAS Net Profit of RUB 32.0 Billion for
  the Nine Months of 2012

UK Regulatory Announcement


Rostelecom OJSC (MICEX - RTS: RTKM, RTKMP; OTCQX: ROSYY), Russia’s national
telecommunications operator, today announces that its revenues for the nine
months of 2012 under Russian Accounting Standards (“RAS”) amounted to RUB
210.2 billion. Rostelecom’s operating profit totalled RUB 43.0 billion, its
profit before tax was RUB 40.1 billion and net profit equalled RUB 32.0

The Company would like to draw attention to the following:

Rostelecom’s financial results under RAS for the first quarter of 2011 do not
include any contribution from the seven regional telecom operators or OJSC
Dagsvyazinform, which were merged with Rostelecom on April 1, 2011. The
Company’s results under RAS for the nine months of 2012 do however comprise of
results from the combined Rostelecom, and therefore include contributions from
the seven regional operators and from OJSC Dagsvyazinform, but they exclude
any contribution from Rostelecom OJSC subsidiaries, including OJSC National
Telecommunications (“NTK‟), Sky Link CJSC (“Sky Link”) and mobile
subsidiaries. Rostelecom’s balance sheet as at September 30, 2012, also
comprises contributions from all of the companies merged into the new
Rostelecom on April 1, 2011 but it excludes contributions from Rostelecom’s
mobile subsidiaries, Sky Link and NTK. Direct like-for-like comparisons of the
Company’s financial performance for the nine months of 2011 and 2012 under RAS
are therefore not possible.

Rostelecom intends to publish its key financial and operating results
according to the Company’s consolidated statements for the nine months of 2012
on November 21, 2012. These statements will include contributions from
Rostelecom as well as the seven merged regional operators, OJSC Dagsvyazinform
and their subsidiaries, including NTK, Sky Link and mobile subsidiaries.

Please use the following link to access Rostelecom’s key financial and
operating consolidated results for the years 2009 - 2011, for the first
quarter of 2011, for the first six months of 2011, for the nine months of 2011
and for the first and second quarters of 2012:

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For more information please visit or contact:

Investor Relations Department
Tel. +7 (499) 995 97 80

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Rostelecom ( is Russia’s largest national universal
telecommunications operator. Rostelecom has the largest domestic backbone
network and a unique ‘last mile’ infrastructure to access millions of
subscribers across Russia. The Company holds licences to provide a wide range
of telecommunications services, including fixed and mobile telephony,
broadband Internet access, pay TV and cloud solutions, to residential,
corporate and governmental subscribers and third party operators across all
regions of the Russian Federation. Rostelecom continues to lead in delivering
high-quality internet services. The total capacity of its clients’ connections
exceeds 2.3 Tb / s, which is a record among Russian operators. Rostelecom
cooperates with 600 national and international fixed line and mobile
operators, which gives the Group direct access to over 150 operators’ networks
in 70 countries. Rostelecom also jointly operates international submarine
cable networks.

Rostelecom’s ordinary and preferred shares are traded on the MICEX-RTS (RTKM,
RTKMP) stock exchange, and its depository receipts are traded over-the-counter
in the United States on the OTCQX under the symbol ‘ROSYY’. Rostelecom was
assigned a ‘BBB-’ and ‘BB+’ international credit ratings by Fitch Ratings and
Standard & Poor’s respectively, both with a ‘Stable’ outlook. Rostelecom had
27.8 million local fixed-line voice subscribers, 12.9 million mobile voice
subscribers, 8.6 million fixed-line broadband subscribers and 6.2 million
pay-TV subscribers at the end of 2Q 2012. The Group generated RUB 159.9
billion of consolidated revenues, RUB 64.7 billion of OIBDA (40.5% of
revenues) and RUB 23.4 billion of net income for the six months ended June 30,

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Certain statements in this press release are forward-looking statements within
the meaning of the U.S. federal securities laws and are intended to be covered
by the safe harbors created thereby.

Those forward-looking statements include, but are not limited to:

• Management’s assessment of the Company’s future operating and financial
results as well as forecasts of the present value of future cash flows and
related factors;

• the Company’s anticipated capital expenditures and plans to construct and
modernize its network;

• the Company’s expectations as to the growth in demand for its services,
plans relating to the expansion of the range of its services and their

• the Company’s plans with respect to improving its corporate governance

• the Company’s expectations as to its position in the telecommunications
market and the development of the market segments within which the Company

• economic outlook and industry trends;

• the Company’s expectations as to the regulation of the Russian
telecommunications industry and assessment of impact of regulatory initiatives
on the Company’s activity;

• other statements regarding matters that are not historical facts.

Such forward-looking statements are subject to risks, uncertainties and other
factors, which could cause actual results to differ materially from those
expressed or implied by these forward-looking statements. These risks,
uncertainties and other factors include:

• risks relating to changes in political, economic and social conditions in
Russia as well as changes in global economic conditions;

• risks relating to Russian legislation, regulation and taxation, including
laws, regulations, decrees and decisions governing the Russian
telecommunications industry, securities industry as well as currency and
exchange controls relating to Russian entities and their official
interpretation by regulatory bodies;

• risks relating to the Company, including the achievement of the anticipated
results, levels of profitability and growth, ability to create and meet demand
for the Company’s services including their promotions, and the ability of the
Company to remain competitive in a liberalized telecommunications market;

• technological risks associated with the functioning and development of the
telecommunications infrastructure, technological innovations as well as the
convergence of technologies;

• other risks and uncertainties. For a more detailed discussion of these and
other factors, see the Company’s Annual Report and the Company’s other public

Many of these factors are beyond the Company’s ability to control or predict.
Given these and other uncertainties, readers are cautioned not to place undue
reliance on any of the forward-looking statements contained herein or
otherwise. The Company does not undertake any obligation to release publicly
any revisions to these forward-looking statements (which are made as of the
date hereof) to reflect events or circumstances after the date hereof or to
reflect the occurrence of unanticipated events, except as may be required
under applicable laws.


Rostelecom OJSC
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