Rostelecom may cut 2013 net profit forecast - paper
MOSCOW, July 17
MOSCOW, July 17 (Reuters) - Russian state-controlled telecoms operator Rostelecom may revise its estimate for 2013 net profit down by 36 percent to 20.9 billion roubles ($644.39 million), business daily Kommersant reported on Wednesday.
In accordance with Russian Accounting Standards, Rostelecom's profit reached 32.7 billion roubles a year ago. The company's net profit under International Standards amounted 35.2 billion roubles ($1.09 billion) in 2012.
Kommersant cited a presentation prepared for a board of directors meeting in August as its source. It said profits would be hit by a high outflow of telephone subscribers and delays in launching its third-generation network.
Rostelecom plans to compensate for the loss through savings on procurement of contractors and on the optimisation of staff, it said.
"Adjustment of the budget after the first half of the year is normal for a big company ... Moreover, new top-management are reviewing ways of addressing some issues," Valery Kostarev, spokesman for Rostelecom was quoted as saying.
Rostelecom named former cable TV boss Sergei Kalugin as its new chief executive in a government-forced leadership change in March.
The government, formed after Vladimir Putin was elected for a third Kremlin term last year, criticised Rostelecom's weak share price and its plans to expand in Russia's cut-throat mobile sector. (Writing by Maya Dyakina; editing by Elizabeth Piper)