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Recent news
18.06.2010
North-West Telecom reports its Q1 10 IFRS financial resultsPress release
North-West Telecom has reported its first quarter 2010 financial results in accordance with international financial reporting standards (IFRS). The company’s interim consolidated financial statement is not audited.
In accordance with IFRS, revenue for the first quarter of 2010increased by 7.4% year-on-year and reached RUR 7,017 mln. In addition, expenses decreased by 2.1% compared with the first quarter of 2009 and amounted to RUR 5,878 mln.
Operating profit in the first quarter of 2010 amounted to RUR 1,973 mln, which is 51.2% higher than in the same period last year. The major growth in operating profit is attributable to successful implementation of NWT’s marketing strategy, and also cost-cutting measures undertaken by the Company.
As a result, revenue once again increased at a faster pace than expenses at North-West Telecom in the first quarter of 2010.
The biggest items in the operator’s revenue breakdown turned out to be datacom and Internet. These items reached RUR 1,481 in the first quarter of 2010, which is 18% more than in the year-earlier period. Incremental revenue from value-added services points to the continuation of active expansion of NWT into the broadband Internet market in the North-West Federal District.
Household revenues accounted for over 55% of the Company’s overall revenue. EBITDA amounted to RUR 3,744 mln in the first quarter of 2010, which is 88.9% higher than in the same period last year. In addition, EBITDA margin went up by 23% to 53.3%, which is in line with the business efficiency of leading telecommunications companies.
NWT’s net profit in accordance with IFRS stood at RUR 1,452 mln in the first quarter of 2010, compared with a loss of RUR 143 mln in the same period last year. Such a huge increase in net profit is attributable to the low base in the first quarter of 2009 which was received as a result of major losses incurred due to the revaluation of foreign currency liabilities.
*EBITDA is calculated using the following formula: “Profit (loss) before tax from ongoing activities during the reporting period” +”Depreciation and amortization” + “financial expenses” – “interest revenue from pension plan assets”.
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