05-1
Financial results

Key financial indicators

The financial analysis of Transtelecom JSC is executed on the basis of the accounting reports and the management report on incomes and expenditures for 2015-2017. The reliability of the financial statements of Transtelecom JSC for the period from 2015 to 2017 was confirmed by an independent auditor - Deloitte LLP - during the audit conducted under the Kazakhstan Accounting Standards and International Financial Reporting Standards.

Income analysis

Revenues from the provision of Transtelecom JSC's services for the year 2017 amounted to KZT 71,022 million, the dynamics of growth in income from core activities compared to last year's index is by 48%, and income is only by 44%. Positive dynamics is due to the growth in the number of subscribers, types and volume indicators of telecommunications services provided, as well as the implementation of new projects, such as Astana EXPO-2017, Modernization of fiber-optic lines of KazTransOil JSC, Extension of EDT automated control system, design of integrated security system for railway stations.

As for the core activities of the company in 2016, compared with the previous year, there is growth in communication services (an increase is by 19%), IT services and projects (an increase is by 78%), others (an increase is by 53%).

Structure of income from core business 2015 год 2016 год 2017 год
communication services 19 287 095 24 691 943 29 445 022
IT services and projects 13 268 687 23 187 178 41 378 154
other services 113 292 130 580 199 270
32 669 074 48 009 701 71 022 446
2015
  • 59%
  • 40%
  • 1%
  • 59
    Communication services, 29 445 022
  • 40
    IT services and projects, 41 378 154
  • 1
    Other services, 113 292
2016
  • 65%
  • 34%
  • 1%
  • 65
    Communication services, 29 445 022
  • 34
    IT services and projects, 41 378 154
  • 1
    Other services, 130 580
2017
  • 58%
  • 41%
  • 1%
  • 58
    Communication services, 29 445 022
  • 41
    IT services and projects, 41 378 154
  • 1
    Other services, 199 270
Income from operating activities, th.KZT
Income from operating activities, th.KZT
Operating expenses, th.KZT
Operating expenses, th.KZT
Net profit, th.KZT
Net profit, th.KZT
Name 2015 год 2016 год 2017 год Comments
The cost price, including (material items): 20 841 096 34 245 775 53 898 835
Salary 3 756 379 4 605 135 4 948 308 Growth is associated with an increase in average wages by 12%.
Soc. deductions 427 584 506 905 577 773
Materials 1 621 295 7 997 328 1 306 393 The decrease in expenses is mainly due to optimization of operating and maintenance costs of networks and equipment (- KZT 380 million) and reduction of costs for materials under the Single Service Center project - KZT 566 million.
Fuel 91 832 109 745 133 450 The costs increase is associated with the petroleum products proses raising.
Electric power 163 395 179 945 176 700
Payment for third parties' services 6 391 916 9 240 036 34 527 697 The increase in expenses is mainly due to the increase in the need for traffic transmission through the networks of third-party operators + KZT1,161 million, Internet access services + KZT 400 million KZT, an increase in operating costs due to the commissioning of communication lines + KZT 608 million, an increase in the need for the last mile renting + KZT 1 064 million. The above expenses ensure the growth of profitability from telecommunications services. Other projects with their costs were as follows: Astana Expo 2017 + KZT 18,245 million, Integrated security system for railway stations + KZT 2 604 million.
Depreciation of FAs & IAs 6 708 401 7 408 342 7 629 787 The growth is connected with the renovation and modernization of equipment and the commissioning of new trunk and local communication lines.
Sales of goods and materials 0 7 536 994 1 716 280 The decrease is connected with the completion of "System Z" Modernization of Computing Systems project.
Other expenses 1 639 994 2 405 548 1 894 135 The decrease is due to the reduction in costs for software maintenance by third-party organizations on completed projects.
Name 2015 год 2016 год 2017 год Comments
Name 2015 год 2016 год 2017 год Comments
Period expenses, including: 7 819 692 9 058 558 11 131 484
Administrative expenses 1 630 941 1 884 383 2 389 742 The expenses increased mainly due to the raising of the payroll of administrative personnel after the change in the organizational structure + KZT 382.5 million. The growth in expenses for the rental of executive personnel's premises is connected with the expansion of areas associated with the change in the organizational structure of the Company by placing the Data Processing Center in the "Emerald Quarter" business center + KZT 125 million.
General running costs 654 829 305 735 1 281 430 The increase in expenses is mainly due to the increase in advertising costs + KZT 498 million. Participation in the forum + KZT 287 million, expenses for outsourcing within the framework of IT projects promotion + KZT 157 million.
Provisions 64 829 145 415 24 024
Tax payments 2 475 509 391 1 263 786 The increase in expenses is mainly due to the increase in taxes on the use of the radio frequency spectrum + KZT 467 million, the fee for provision of a long-distance telephone communication + KZT 110 million.
General social expenditures 122 601 149 706 183 736 Increase of expenses under the collective agreement.
Sponsorship 62 646 0 0
Financing costs 5 286 321 6 035 743 5 988 767
Expenses on asset retirement 0 28 185 0
Name 2015 год 2016 год 2017 год Comments
ROA (return on assets
ROA (return on assets
ROE (return on equity)
ROE (return on equity)

The indicators of return on assets and return on equity demonstrated positive dynamics, related to the growth of net profit.

EBIDTA
EBIDTA
EBIDTA margin
EBIDTA margin

The decrease in EBITDA margin is due to the increase in prices for purchased goods and services, with fixed rates for basic communication services. Astana EXPO 2017 strategic project was also implemented. The share of the project amounted to 27.4% of total revenue, the gross margin of the project was 4.97%, which led to a decrease in relative profitability indicators.

Debt to EBIDTA
Debt to EBIDTA
Debt to equty ratio
Debt to equty ratio
Debt to assets ratio
Debt to assets ratio

The indicators of financial stability showed positive dynamics associated with the planned repayment of debt obligations and a decrease in financial leverage of 2.25 to 1.97.

Cash and cash equivalents, th. KZT
Cash and cash equivalents, th. KZT

The decrease in cash in 2017 is related to the financing of investment projects including: Projects of branches KZT 1,060 million, transport and transit network development project KZT 663 million, FOCL HSS project 1,599 million, ODC project KZT 991 million, the Makat-Mangyshlak project of KZT 1,696 million, as well as the repayment of financial liabilities in the amount of KZT 9,282 million.