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Kazakh information, communication companies expand business

Business Materials 30 June 2015 14:09 (UTC +04:00)

Baku, Azerbaijan, June 30

By Elena Kosolapova - Trend:

In the first quarter of 2015, the companies in Kazakhstan, operating in the field of information and communication, invested in fixed assets 14.3 billion tenge (186.2 tenge = $1), which is 22 percent more than the same period in 2014, said the report released by analytical service Ranking.kz.

The report said that the share of companies' own funds in total investment in the sector of information and communication in the first quarter of 2015 was 98 percent compared to 66 percent in general on economy (89 percent and 70 percent in 2014, respectively).

The volume of foreign investments attracted in this sector of the economy is negligible. Investments via the state budget are minimal and unstable.

In general, the growth of investment in fixed capital sector in the first quarter was 11 percent and reached 14.65 billion tenge ($80 million). The share of information and communication sector in gross volume of investments in Kazakhstan is 1.5 percent.

The share of enterprises, providing telecommunications services (the sector "Information and communication" also includes courier and postal services, the media and others.), i.e. telecommunication companies (fixed, satellite and mobile communications, voice and data transfer) in this index accounts for the major part, but is not sustainable.

Kazakhtelecom is a national company, involved directly and through subsidiaries in most markets of communications services, shows a 12 percent increase in revenue (up to 51.8 billion tenge - $80 million), given a 13-fold increase in net profit on the results of the first quarter of 2015.

Quarterly results of Kcell (voice and mobile Internet) are less optimistic: the company's revenue fell by 2 percent (up to 43 billion tenge, or $231 million), net profit - by 15 percent (13.2 billion tenge). The company has increased the volume of acquisition of fixed assets by more than three times, having spent 8.2 billion tenge on new fixed assets.

KazTransCom is telecommunications operator, providing a wide range of services, it showed mixed results in the first quarter of 2015. Revenue from the company for the period increased by 3 percent (4.2 billion tenge, or $22 million), while net profit fell from 1.5 billion tenge to 0.6 billion tenge.

ASTEL company provides satellite communications market (the company has more than 2,600 satellite earth stations in Kazakhstan). The company, which positions itself as a service integrator in the sub-sector of satellite communications, ended the quarter with a decrease in revenues by 7 percent. The net income decreased by 5.5 times.

Edited by CN

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