Er-Telecom plans to double business in the next 5 years

    According to the newspaper Kommersant, Er-Telecom plans to double the business over the next 5 years at a growth rate of 15-18% per year. The company is not going to conduct an IPO in the near future, but hopes that it will be able to attract at least $ 500 million without losing control.

    The company "Er-Telecom" was founded in 2001 in Perm. Now the company operates in 56 cities. According to the results of last year, Er-Telecom ranked second in terms of the number of users (2.713 million) in the broadband access market with a market share of 9%. On the TV market, he took 4th place with a market share of 7%. Er-Telecom is one of the largest operators of pay-TV and broadband Internet access.

    Last week, changes took place in the structure of Er-Telecom: Andrei Kuzyaev, co-owner of the company, took the presidency. It was announced that the company is developing a new development strategy.


    “The previous strategy worked in 2010-2015. Our share of revenue in the pay-TV market grew to 13-14%, broadband access to 12-13%. Need to move on. The strategy for the next five years is being developed, but its key goal is already known: we want to double the business, ”said Kuzyaev.

    “Another goal is the 45-50% penetration of services in each local market where the company is present. Now such an indicator has been achieved in five to six cities, ”he added.

    It is known that, as part of the company's previous strategy, negotiations were held on entering the Moscow market. If successful, it could become the largest Russian company in the industry and enter an IPO. But this never happened.

    The new strategy involves the active use of those markets in which the company already has influence. Preparation for an IPO is planned for the long term, as the current economic situation is not favorable.

    Er-Telecom plans to pay about 3 billion dividends this year.

    “We consider Russian and foreign sites for placement. We want to attract at least $ 500 million without losing control. But for this, we will have to work on the development of the company, since now it is estimated at $ 1.2-1.3 billion, "says Andrei Kuzyaev.

    According to Telecom Daily, the pay-TV and broadband Internet access market in 2014 grew a little more than 5%. Growth rates are declining.

    In May 2014, Er-Telecom received licenses to work in the Crimea, as they wrote in the newspaper Vedomosti.

    If the company nevertheless continues to expand its influence in new regions, then the likelihood that it can grow significantly will be much higher.

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