Tuesday, September 2, 2014

Russian companies feel the squeeze

RostelecomThe capitalisation of public telcos and media companies in Russia has fallen significantly in the last two years.
Quoting Deloitte and Bloomberg, Kommersant reports that although it increased by more than 38 times over the last four years and amounted to $113.47 billion at the end of 2013, as of August it stood at $83.5 billion.
This was not only 26% down on eight months earlier but also 4% lower than in 2012.
The reasons for this contraction are put down to the rise of the dollar, worsening macroeconomic conditions and the political situation, specifically Ukraine.
Industry sources expect the telco sector will recover more quickly than the media, which has been hit by regulatory developments, including those related to advertising.

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