CJSC Company TransTeleCom (TTK) completed the acquisition of 100% of the shares in CJSC Maginfo (Magnitogorsk, Chelyabinsk region), TTK informed.
The transaction will establish TTK as the absolute leader in the market of broadband Internet access and cable television services of Magnitogorsk. The terms of service for Maginfo subscribers will not change.
"Today, Maginfo has 63% of the broadband Internet access market and 61% of the cable television market in Magnitogorsk," Shukhrat Ibragimov, TTK Vice President for strategic development, commented.
According to previous reports, experts estimated the transaction value at ca. $45 million.
CJSC Company TransTeleCom (trade mark: TTK) is a parent company of TTK Group which is in the Top 5 of leading Russian communication services providers. TTK's 17 regional enterprises provide telecommunication and data transmission services as well as broadband Internet access services to private and corporate customers all over the country. The major shareholder of TTK is OJSC Russian Railways which owns 99.99% of the company's shares.
TTK operates and maintains one of the largest optical networks in Russia more than 76 thousand km long with the bandwidth of 1.6 Tbit/s along with its own unique infrastructure of access to 4.8 million Russian households.
IFRS net profit of TTK for 2012 fell by 30% to RUB 0.7 billion. Revenue increased by 9% year-on-year to RUB 27.1 billion against RUB 24.9 billion for 2011. OIBDA grew by 10% year-on-year reaching RUB 4.8 billion. OIBDA margin increased to 17.7% against 17.5% in 2011.
Maginfo established 1996 provides broadband Internet access and cable television services in Magnitogorsk. Its subscriber base reaches 60 thousand broadband Internet users, exceeds 60 thousand cable television users. All Maginfo networks employ the FTTB technology. The operator's technical coverage is ca. 140 thousand households.