Rostelecom to acquire the leading broadband provider in Vladikavkaz
Moscow, Russia – December 13, 2017 – Rostelecom PJSC (MOEX: RTKM, RTKMP; OTCQX: ROSYY) Russia’s national telecommunications operator, announces that its subsidiary Bashinformsvyaz has acquired 100% stake of Tvingo telecom LLC, the major internet provider in Vladikavkaz.
Tvingo telecom provides broadband, IPTV and IP telephony services for households and corporate clients. The company operates its own fibre-optic network covering almost all multi-storey buildings (using the FTTx technology) and low-rise buildings (with the GPON technology) in Vladikavkaz city and its suburbs. The operator holds a half of B2C broadband market and a third of B2B/G broadband market with a subscriber base of 1,000 corporate and 30,000 residential clients. The company has reached RUB 229.7 mln of revenue with RUB 122.4 mln of normalised EBITDA in 2016.
“The deal enables Rostelecom to boost its marketplace and get the leading positions in the broadband market of the area. Moreover, we are expecting some synergies to come from OPEX optimisation mainly driven by lower payroll, as well as reduced expenditures on communications channels lease thanks to the shift to Rostelecom network”.