TLTZF - Rostelecom: An Uncertain Future

Rostelecom (OTCQX:OTCQX:ROSYY) has high-quality infrastructure and a solid position in most segments. Despite that, the company’s operating and cash flow outlook is likely to be weaker than expected. I think that dividend yields offered by the company are not sufficiently attractive to justify low single-digit revenue growth.

Company Overview

Rostelecom is a nationwide telecommunications enterprise and the largest universal communications operator in Russia. The company provides integrated telecom solutions, such as fixed-line telephone services, data, broadband internet access and pay-TV services. Rostelecom also owns 45% of fourth-largest mobile operator Tele2 Russia (OTCPK:OTCPK:TLTZF