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Recent news
04.05.2010
North-West Telecom reports Q1 2010 financial resultsPress release
On April 3 0, 2010 North-West Telecom released its financial results for the first quarter of 2010, drafted to Russian Accounting Standards (RAS).
The operator’s revenue increased by 9% to RUR 6,965 mln in the first quarter compared with the year-earlier period, including RUR 6,408 mln derived from the sale of telecom services.
The biggest growth came from the provision of value-added services (Internet and datacom) and local voice telephony, which went up by 19.5% and 7.7% compared the previous year, respectively. In absolute terms, revenue from value-added services amounted to RUR 1,421 mln, and RUR 3,552 mln from local voice.
The increase in revenue compared with the first quarter of 2009 was attributable to growth in NWT’s broadband Internet subscriber base, which exceeded 939,000 users in the first quarter, and also the indexation of local voice tariffs as of February 1, 2010.
NWT’s expenses totaled RUR 5,647 mln in the first quarter of 2010, which is 5.6% higher than in the same period last year. The increase in expenses was caused mainly by an increase in depreciation charges, which amounted to RUR 1,618 mln in the first quarter of 2010, i.e. 22.3% higher than in the first quarter of 2009.
North-West Telecom generated net profit equal to RUR 1,424 mln. EBITDA* more than doubled vs. the same period last year and amounted to RUR 3,533 mln. EBITDA margin stood at 50.7% in the reporting period, which is 23.2% higher than in the first quarter of 2009.
Such a major increase in NWT’s efficiency indicators in the first quarter of 2010 is attributable mainly to the fact that NWT’S financial reports were exposed to major foreign currency exchange rate loses in the first quarter of 2009, which exerted a negative impact on NWT’s financial performance (a loss totaling RUR 1,095 mln in the first quarter of 2009, compared to a profit of RUR 87 mln in the first quarter of 2010).
The accounting balance and income statement of North-West Telecom in the first quarter of 2010 are posted on NWT’s corporate website in the section “Economics and finance” (in Russian).
*EBITDA is calculated using the following formula: “profit (loss) before taxation + interest payable + depreciation and amortization of fixed assets + lease expenses.
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