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. Last Updated: 07/27/2016

Rostelecom Posts Loss Of $64M

Long-distance monopoly Rostelecom on Thursday reported a loss of 1.8 billion rubles ($63.9 million) for 2000, down from a 3.3 billion-ruble profit in 1999.

The company reported 2000 revenues of 24.9 billion rubles, a 10 percent dip in ruble terms. The results were given according to international accounting standards.

International long-distance traffic fell 4.1 percent as callers switched to alternative operators. Revenues from foreign operators using Rostelecom's network fell 29 percent to 7.2 million rubles.

"Basically, in short, it means that the business is not growing," said Alfa Bank telecoms analyst Andrei Bogdanov.

However, the company's debt decreased by $100 million to $369 million.

Rostelecom announced it had acquired a controlling stake in alternative operator Telmos. Rostelecom paid $17 million for AT&T's 40 percent stake, boosting its share to 60 percent.

The company may benefit from last week's decision by the Anti-Monopoly Ministry to increase by 25 percent the payment from regional operators to Rostelecom for routing their long-distance traffic within Russia.

The decision shows that state telecoms holding Svyazinvest, which owns 51 percent of Rostelecom, and the Communications Ministry have influence over the Anti-Monopoly Ministry, Bogdanov said. "The company is more supported by Svyazinvest and the state than it was before," he said.

Rostelecom shares closed off 1.12 percent at $0.88.