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 2015-2018. 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 services that Transtelecom JSC rendered in 2018 amounted to 74 691 million tenge, actual income indicators remained at the level of 2017 (71 022 million tenge). Revenues from communication services in 2018 also remain at the level of the previous year, 29 445 million tenge and 28 583 million tenge, respectively.

Structure of income from core business 2016 год 2017 год 2018 год
Communication services 24 691 943 29 445 022 28 583 142
IT services and projects 23 187 178 41 378 155 45 941 944
Other services 130 580 199 272 166 253
Total operating income 48 009 701 71 022 449 74 691 339
Chart
48%
IT-services and projects
51%
Communication services
1%
Other services
Chart
58%
IT-services and projects
41%
Communication services
1%
Other services
Chart
61%
IT-services and projects
38%
Communication services
1%
Other services

Net profit, thousand tenge

  • 6 000 000
  • 5 000 000
  • 4 000 000
  • 3 000 000
  • 2 000 000
  • 1 000 000
4 336 550
2016
5 331 602
2017
3 949 062
2018

Revenues from core activities, thousand tenge

  • 80 000 000
  • 70 000 000
  • 60 000 000
  • 50 000 000
  • 40 000 000
  • 30 000 000
  • 20 000 000
  • 10 000 000
48 009 701
2016
71 022 449
2017
74 691 339
2018

Operating expenses, thousand tenge

  • 70 000 000
  • 60 000 000
  • 50 000 000
  • 40 000 000
  • 30 000 000
  • 20 000 000
  • 10 000 000
37 240 405
2016
58 245 507
2017
64 226 867
2018
Name 2016 год 2017 год 2018 год
Production costs, including: 34 245 775 53 898 837 57 506 993
Salary and other labor costs 5 060 425 5 484 795 6 349 318
Materials 2 287 778 1 306 393 3 052 392
Professional Services 1 688 748 2 304 364 1 874 085
Operating lease expenses 3 670 542 4 690 967 7 225 583
Communication services 1 400 290 2 972 349 1 573 980
Payment for services of third parties 3 361 351 25 574 974 25 576 266
Payment for third-party services of organizations 1 688 748 2 304 364 1 874 085
Cost of sales of inventory items 1 716 280 209 291
Software cost 7 536 994
Depreciation and amortisation 7 408 342 7 666 780 8 338 324
Other costs 1 412 628 1 364 792 2 600 522
Employee benefit cost 85 606 23 409 102 152
Name 2016 год 2017 год 2018 год
Expenses of the period, including: 9 058 558 10 423 558 12 845 434
Salary and other related expenses 1 166 943 1 458 493 1 755 691
Allowance for impairment of other non-current assets 1 102 052
Provision on remuneration of key management personnel 91 327 367 775 1 065 590
Taxes, other than income tax 508 793 459 389 798 499
Third Party Services 351 200 464 322 704 056
Rent of premises 214 700 265 813
Advertising Costs 572 150 202 150
Professional Services 400 734 141 052 166 383
Depreciation and amortisation 111 672 127 173 122 187
Allowance for doubtful debts 81 241 30 458 42 027
Employee benefit expenses 16 306 4 459 25 538
Other expenses 294 599 529 152 762 656
Finance Costs 6 035 743 6 054 435 5 832 792
Expenses of the period, including: 9 058 558 10 423 558 12 845 434

ROA

  • 0.06
  • 0.05
  • 0.04
  • 0.03
  • 0.02
  • 0.01
4 336 550
2016
5 331 602
2017
3 949 062
2018

ROE

  • 25,00%
  • 20,00%
  • 15,00%
  • 10,00%
  • 5,00%
48 009 701
2016
71 022 449
2017
74 691 339
2018

Return on assets and return on equity showed a negative trend associated with a decline in net profit.

EBITDA

  • 21 000 000
  • 20 500 000
  • 20 000 000
  • 19 500 000
  • 19 000 000
  • 18 500 000
  • 18 000 000
  • 17 500 000
  • 17 000 000
  • 16 500 000
4 336 550
2016
5 331 602
2017
3 949 062
2018

EBITDA margin

  • 0,4
  • 0,35
  • 0,3
  • 0,25
  • 0,2
  • 0,15
  • 0,1
  • 0,05
48 009 701
2016
71 022 449
2017
74 691 339
2018

The decrease in EBITDA margin is associated with an increase in prices for purchased goods and services at fixed basic tariffs for services, with implementation of Astana EXPO 2017 project in 2017 with a specific weight of 27.4%, KazTransOil JSC project in 2018 with a specific weight of 26.1% of total revenue with margins below the weighted average for the Company.

Debt to eqyity

  • 21 000 000
  • 20 500 000
  • 20 000 000
  • 19 500 000
  • 19 000 000
  • 18 500 000
  • 18 000 000
  • 17 500 000
  • 17 000 000
  • 16 500 000
4 336 550
2016
5 331 602
2017
3 949 062
2018
  • 0,4
  • 0,35
  • 0,3
  • 0,25
  • 0,2
  • 0,15
  • 0,1
  • 0,05
48 009 701
2016
71 022 449
2017
74 691 339
2018
  • 21 000 000
  • 20 500 000
  • 20 000 000
  • 19 500 000
  • 19 000 000
  • 18 500 000
  • 18 000 000
  • 17 500 000
  • 17 000 000
  • 16 500 000
4 336 550
2016
5 331 602
2017
3 949 062
2018

Debt to EBITDA

ROE, ROA Return on assets and return on equity showed negative dynamics associated with a decrease in net profit.

Debt to eqyity

Debt to assets

EBIDTA th. KZT, Decrease in EBITDA margin is associated with an increase in prices for purchased goods and services, at fixed tariffs for basic communication services. The Company also implemented the KazTransOil JSC project. The specific weight of the project is 26.1% of the total revenue, the gross margin of the project was 8.9%

The decrease in cash in 2018 was associated with the financing of investment projects, including: Magistral ACS, Integrated safety system of railway stations: 17 stations