Rostelecom acquires national media operator Synterra Media
Moscow, Russia – October 22, 2020 – Rostelecom PJSC (MOEX: RTKM, RTKMP; OTCQX: ROSYY), the largest integrated digital service provider in Russia, today announces that it has signed a legally binding agreement to acquire 100% of Synterra Media, an operator of national media services and subsidiary of MTT Group, for RUB 1.5 billion with a deferred payment scheme subject to the renewal of existing contracts. The deal will strengthen Rostelecom’s leading position in the terrestrial delivery of video content (contribution and distribution segments). The consolidation of Synterra Media will facilitate the development of new business solutions and technological resources to media companies. Synterra will join Rostelecom as a subsidiary company, while retaining key staff and competencies.
Synterra Media is one of the key players in the ground delivery and distribution of media content, specialising in the following areas:
- the delivery of video content and connectivity services between event venues and the control rooms of TV broadcasting companies (contribution segment);
- the submission of TV programming to distribution networks and Pay TV operators in Russia and abroad of TV programmes from paid TV operators in Russian and abroad (distribution segment);
- the provision of media centre services; and
- the provision of dedicated communication channels and other services.
Synterra Media’s services are used by some of the largest TV production companies in Russia, as well as pay TV providers, international media networks, regional TV companies and radio stations. The Company’s revenues in 2019 amounted to around RUB 800 million and an EBITDA margin of over 40%.
“Synterra Media is a quality company with financial stability and a stable business model. This is a landmark deal in Russia which sees the strategic consolidation of terrestrial TV-signal delivery and distribution in the B2B segment. Rostelecom’s dominant position and share in this segment provides huge potential for growth in the adjacent services market for broadcasters. We expect the integration of Synterra to realise significant synergy, which we expect will advance the business unit’s performance.”
“Rostelecom has history in delivering TV content to the market and the acquisition of Synterra Media, a nationwide operator of media services, represents a logical step in the development of the B2B segment business. The acquisition essentially provides Rostelecom with the ability to establish competency that creates a “one-stop-shop” for a range of technological services to the media market.”
Further information is available at https://www.company.rt.ru/en/ir/news_calendar/.
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