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Recent news
12.04.2010
North-West Telecom reports FY09 RAS financial resultsPress release
North-West Telecom has reported the results of its full-year financial results under Russian Accounting Standards (RAS) for 2009. An audit of NWT was conducted by auditing firm PricewaterhouseCoopers Audit.
In 2009 the company’s revenue increased by 7% compared with the previous year and amounted to RUR 26,295 mln. The main revenue growth drivers turned out to be value-added services (Internet and datacom), intrazonal telephony and local voice. Compared with 2008, revenue from the provision of Internet access and datacom went up by 22% and reached RUR 5,062 mln, respectively, while revenue from intrazonal and local voice increased by 7% and 4% to RUR 2,594 mln and RUR 13,358 mln, respectively.
Profit from sales of telecom services (EBIT) amounted to RUR 2,208 mln, which is 41% less than in 2008. The decline in EBIT was attributable to the current accounting methodology used for booking expenses which are related to the implementation of the state program for providing universal telecommunications services. NWT records the expenses for the provision of this service in its operating expenses, and they are reimbursed from the Universal Service Reserve as other revenues. Including reimbursement from the Universal Service Reserve NWT’s EBIT increased by 5% compared to the year-earlier figure and reached RUR 6,591 mln.
NWT’s 2009 efficiency indicators point to positive trends compared to the year-earlier period. Thus, EBITDA increased by 12% to RUR 10,818 mln, EBITDA margin rose 1.8% and reached 41%.
The company’s net profit stood at RUR 3,474 mln in 2009, which is 4%* less than in 2008. In addition, organic growth in net profit for 2009 stood at 26.3% (when calculating 2008 net profit not including once-off transactions for the sale and revaluation of assets: the sale of a 25% stake in Medexpress and the revaluation of a contribution to the charter capital of SvyaZisT).
In 2009 North-West Telecom considerably scaled down its investment program to RUR 7 bln (while RUR 2.2 bln was allocated to non-cash investments*), giving preference to projects with a payback period of up to 5 years (projects aimed at expanding broadband Internet networks) and also rolling out fiber-topic cables in the territory of the North-West Federal District.
In 2009 a total of 88,900 lines were commissioned, of which 269,600 were xDSL ports, 69,400 PON ports, and 2,976 km of fiber-optic cables, while the operator’s digitalization rate reached 68%.
Furthermore, North-West Telecom continued to expand into the broadband Internet market in 2009. Thanks to an active marketing policy, broadening of the range of available services and attractive tariff options, the company raised its broadband Internet subscriber base to 894,000, while its market share rose to 47% (in terms of revenue).
The company’s debt load remains at a comfortable and moderate level. Total debt as of the end of 2009 stood at RUR 16,765 mln (of which 48% fell to long-term liabilities), financial independence ratio was 0.60x, while net debt/EBITDA stood at 1.52x.
Commenting on the company’s 2009 financial results, the general director of NWT Vladimir Akulich pointed out that “despite a fairly difficult year for the national economy, NWT managed to achieve all of its budget targets, dramatically strengthen its positions in the broadband Internet segment, and also raise its business efficiency to the level of European counterparts”.
* The cost of PTT equipment, listed on the balance sheet of NWT after the scheduled liquidation of PTT.
The accounting balance sheet, the cash flow statement of North-West Telecom for 2009 and also the operator’s 2009 auditor’s statement are posted (in Russian) on the corporate website of NWT in the section entitled “Economics and finances”.
EBITDA is calculated using the following formula: profit (loss) before taxation + interest payable – interest receivable + depreciation and amortization of fixed assets + lease expenses.
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