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Rostelecom is the largest fixed-line operator in Russia and the owner of the backbone network that carries traffic between the regions. The group includes a mobile operator, data centres and divisions that service government information systems. Its ordinary and preferred shares trade under the tickers RTKM and RTKMP.
The company earns from several revenue streams, and they move at very different speeds. The traditional one is the fees for home internet, telephony and television: the income is stable but grows slowly, while fixed-line telephony is shrinking outright year after year.
The fast-growing part is digital services: data centres and cloud services, information security, and the maintenance of government digital platforms. Here the company holds a special position: it is a contractor for large government programmes, and such contracts are long and predictable.
The third stream is mobile communications through a subsidiary operator. On the cost side the peculiarity is the same as for the whole industry: the network requires constant investment, and that investment cannot be postponed.
Home internet, television, telephony, the backbone network.
A subsidiary mobile operator with its own network and subscriber base.
Data centres, cloud services, information security, maintenance of government platforms.
Strengths and weaknesses describe the business itself. Opportunities and threats describe what may happen around it.
The company provides home internet, television and telephony, owns backbone communications networks, is developing a mobile operator, data centres and cloud services, and also maintains government digital platforms.
RTKM are ordinary shares with voting rights. RTKMP are preferred shares: they usually carry no vote, but they have priority when dividends are paid, and historically they have paid no less than the ordinary shares.
Control lies with the state — it owns the main stake directly and through state-owned entities. The remaining shares are traded on the exchange.