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    Rostelecom’s Q4 Profit Plunges 70%

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    Russian long-distance operator Rostelecom announced on Thursday that profits in the fourth quarter of 2012 dropped by 70 percent on the previous year.

    MOSCOW, March 28 (RIA Novosti) - Russian long-distance operator Rostelecom announced on Thursday that profits in the fourth quarter of 2012 dropped by 70 percent on the previous year.

    Company chief executive Alexander Provotorov was dumped a day earlier by the board following months of criticism over lackluster management at the state-controlled company and efforts to branch into the wireless sector.

    Rostelecom said it posted a 4.6 billion ruble ($149 million) IFRS net profit in October-December, well below the consensus forecast figure of 6.5 billion rubles cited by analysts polled by Prime news agency.

    Net profit for the year fell by 17 percent, year on year, to 35.2 billion rubles, the company said, without offering an explanation.

    The Communications Ministry has long criticized Rostelecom under Provotorov for the company’s inefficient management and spending, as well as its foray into the wireless segment, where it is deemed to lack necessary experience.

    The board of directors decided on Wednesday to substitute Provotorov with Sergei Kalugin, ex-head of National Cable Networks.

    Provotorov, whose contract with Rostelecom was to expire in 2015, will receive a 200 million ruble “golden parachute” bonus for his resignation.

     

    Tags:
    Russia’s Communications Ministry, Rostelecom, Alexander Provotorov
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