As a result of engaging the services of bidders with the lowest prices at tender auctions, Rostelecom spent some RUB40.2 billion (USD714 million) less in 2016 than it originally expected. In view of the fact that the procurement total for 2016 stood at RUB208 billion (USD3.696 billion), the savings amounted to 25.2 percent, according to the company’s announcement of February 14, 2017.

Rostelecom is Russia’s flagship long-distance communications operator that is the largest carrier of long-distance data within and outside of Russia. The company also maintains a land-line network for cable television. Rostelecom acquired a number of regional communication operators in 2011, including Centertelecom, Sibirtelecom, Dalsvyaz, Uralsvyazinform, VolgaTelecom, SZT, YTK, and Dagsvyazinform. Rostelecom’s network in Russia stretches for 500 thousand kilometers. The company services 43 million Russian homes.

Rostelecom’s authorized capital is RUB6.961 billion (USD123.7 million) and its majority owner is the Russian government. The company’s shares are listed on the MICEX Stock Exchange in Russia, as well as on the electronic OTC trading platform OTCQX in the United States.

The IFRS (International Financial Reporting Standards) net profit of Rostelecom for the first nine months of 2016 declined by 16 percent to RUB8.663 billion (USD154 million) from RUB10.274 billion (USD183 million) in the previous year. Revenues increased by 0.3 percent to RUB217.039 billion (USD3.856 billion) from RUB216.336 billion (USD3.843 billion). The OIBDA decreased by four percent to RUB72.4 billion (USD1.286 billion) from RUB75.027 billion (USD1.334 billion). The company’s operating profit went down by three percent to RUB28.588 billion (USD508 million) from RUB29.328 billion (USD521 million).