Last checked at 21 Mar 2018 12:35
ROSTELECOM PJSC (RKMD) ROSTELECOM PJSC: Rostelecom announces Strategy 2022 and Dividend policy for 2018-2020 previously approved by the Company's BoD 21-March-2018 / 13:35 CET/CEST Dissemination of a Regulatory Announcement, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.
Rostelecom announces Strategy 2022 and Dividend policy for 2018-2020 previously approved by the Company's BoD
Moscow, Russia - March 21, 2018 - Rostelecom PJSC ("the Company") (MOEX: RTKM, RTKMP; OTCQX: ROSYY), Russia's national telecommunications operator, has presented at the Company's Capital Markets Day in Moscow the Company's Strategy 2022 and Dividend policy for 2018-2020, previously approved by the Company's BoD on 14 March 2018. As part of the Company's strategic plan for 2018-2022, Rostelecom aims to transform into 'digital partner for families, business and the State': a credible provider of a wide range of high quality products and services to meet clients' demands in telecommunication, IT and other areas. To achieve this, Rostelecom will focus on the following core areas: * Development of products & services ecosystems and customer experience improvement * Modernisation of the technological platform * Improvement of the human resources function * Efficiency enhancement. The details on the Company's strategic initiatives for 2018-2022 are available on the website: https://www.rostelecom.ru/ir/results_and_presentations/cmd/2018/. Delivering on the strategic targets will ensure attractive dividends payout in line with the announced Company's Dividend policy for 2018-2020. The Company will continue paying dividends based on free cash flow (FCF). The Company will aim to allocate at least 75% of the FCF to dividend payments (payable on ordinary and preferred shares in total) for each reporting year; it will also aim to pay dividends in the amount of at least 5 rubles per one ordinary share; the Company aims to ensure that the amount of dividend payments does not exceed 100% of net profit according to IFRS for the reporting year. The full text of Dividend Policy is available on the website: https://www.rostelecom.ru/ir/dividends/. Mikhail Oseevskiy, the President and CEO of Rostelecom commented: "We have finalised the renewed 5-year Strategy aimed at Rostelecom's transformation into a provider of digital solutions for all of our key client segments. We have also accomplished an important target of the Strategy alignment with the State Digital Economy Programme where we play a significant role as an offtaker. Steady execution will pave the way for solid dividends for our shareholders. Our ambition is that Rostelecom shares be amongst the most attractive ones from the dividend yield perspective". * * * Rostelecom (www.rostelecom.ru) is one of the largest national telecommunications operators in Russia and Europe. The Group operates in all segments of the telecommunications market and covers millions of households in Russia. Rostelecom is an undisputable leader of the broadband and pay-TV markets in Russia with over 12.7 million fixed-line broadband subscribers and over 9.8 million pay-TV subscribers, over 4.8 million of which are subscribed to Rostelecom's IPTV services. The Group generated RUB 305.3 billion of consolidated revenues, RUB 96.9 billion of OIBDA (31.7% of revenue) and RUB 14.1 billion of net income in 2017. The Group is a market leader in providing telecommunications services to government bodies and corporates of all levels. It is also an important innovator that provides solutions in the field of E-Government, cloud computing, medicine, education, security and housing & utility services. The Group's stable financial position confirmed by its credit ratings. Rostelecom was assigned 'BBB-' and 'BB+' international credit ratings by Fitch Ratings and Standard&Poor's respectively, and AA(RU) by ACRA.
* * * Certain statements in this press release are forward-looking statements within the meaning of the U.S. federal securities laws and intended to be covered by the safe harbours created thereby. Those forward-looking statements include, but are not limited to: Assessment of PAO Rostelecom's (the Company) future operating and financial results as well as forecasts of the present value of future cash flows and related factors; The Company's plans to take ownership stakes in other organisations; 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 pricing; the Company's plans with respect to improving its corporate governance practices; the Company's expectations as to its position in the telecommunications market and forecasts on the development of the market segments within which the Company operates; 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 filings.
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 upon the annual report publication or to reflect the occurrence of unanticipated events, except as may be required under applicable laws.
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| ISIN: | US7785291078 |
| Category Code: | MSCH |
| TIDM: | RKMD |
| LEI Code: | 2534001D752JPNM0H170 |
| Sequence No.: | 5320 |
| End of Announcement | EQS News Service |
666851 21-March-2018
UK Regulatory announcement transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement.