Rostelekom Adr Regulatory News (RKMD)

Rostelecom ranked number one by the number of hosted PBX clients

in the 2018 TMT Consulting Rating

Moscow, Russia - April 10, 2019 - Rostelecom PJSC (MOEX: RTKM, RTKMP; OTCQX: ROSYY), the largest digital service provider in Russia, today announces that it has been ranked first by the number of hosted PBX customers secured in 2018, in the TMT Consulting Rating.

The latest analysis published by TMT Consulting, an independent consulting agency, shows that the Russian hosted PBX market has grown by 35% over the last year. Rostelecom was ahead of its competition based on its subscriber base growth in 2018. The Company's market share more than doubled from 11% in 2017 to 24% last year.

According to TMT Consulting, this growth was driven by the introduction in 2017 of the package offer "Plus Account", with extra services also available within the hosted PBX at a 50% discount, as well as due to an active regional promotion of the service across Russia.

Sergey Tabolin, Rostelecom's director for marketing for the business segment, commented: "Among key factors contributing to our successful promotion of the hosted PBX service, apart from the "Plus Account" offer, are our omni-channel tactics to attract new clients, tailored approach to targeting and advertising in each region, as well as a transparent and straightforward pricing, underpinned by the multifunctional nature of the service."

The PBX service eliminates the need to purchase and maintain telecommunication equipment, as it is hosted on a provider's server and connects users via cloud. Rostelecom enables its clients to arrange a telephone infrastructure for businesses of any size - from start-ups to large national companies, providing a wide range of additional functions, such as phone calls monitoring and recording. In addition, owners of hosted PBX can manage their telephone network through personal web office and adjust it to meet their business needs.

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PAO Rostelecom is the largest digital service provider, operating in all segments of the telecommunications market in Russia, it serves millions of households, the state and private enterprises across the country.

Rostelecom is Russia's undisputed market leader, providing high-speed Internet access to 12 million families and pay-TV services to 10.1 million families, over 5.2 million of which are subscribed to Rostelecom's IPTV services on a national level. Rostelecom's MVNO base is over 1.2 million users. The Company develops digital solutions for smart homes, online education, telemedicine and other services.

The Group is also the leading provider of telecommunications services to government bodies and corporates of all levels with more than 1.0 million legal entities currently using Rostelecom's high-speed Internet services and VPN.

In the twelve months of 2018, the Group generated RUB 320.2 billion of revenues, RUB 100.9 billion of OIBDA (31.5% of revenue) and RUB 15.0 billion of net income.

Rostelecom is a key strategic innovator that provides solutions in the following fields: E-Government, cybersecurity, data centers and cloud computing, biometry, healthcare, education and housing & utility services.

The Group's stable financial position is confirmed by its credit ratings. Rostelecom has been assigned 'BBB-' and 'BB+' international credit ratings by Fitch Ratings and Standard&Poor's respectively, and AA(RU) by ACRA.

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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 intended to be covered by the safe harbours created thereby.

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

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:

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.