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Recent news02.07.2010 |
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Q1 2010 |
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Revenue, RUR, mln |
8,468 |
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Operating profit, RUR, mln |
2,022 |
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Net operating expenses*, RUR, mln |
6,446 |
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EBITDA *, RUR, mln |
3,842 |
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EBITDA margin*, % |
45.4 |
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OIBDA*, RUR, mln |
3,831 |
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OIBDA margin*, % |
45.2 |
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Profit during the reporting period, RUR, mln |
1,375 |
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Net profit margin*, % |
16.2 |
* Net operating expenses are calculated as the sum of expenses for the following items: payroll expenses, depreciation and amortization, interconnect expenses, materials, repair, maintenance and utilities and other operating expenses, adjusted for the size of other operating income;
EBITDA is calculated as the sum of pre-tax profit, financial expenses, depreciation and amortization, adjusted for the size of interest income on pension plan assets and interest income on financial assets;
EBITDA margin is calculated as the ratio of EBITDA to revenue;
ÎIÂDA is calculated as the sum of operating profit and expenses for the item depreciation and amortization;
ÎIÂDA margin is calculated as the ratio of OIBDA to revenue;
Net margin is calculated as the ratio of Profit during the reporting period to revenue.
The consolidated interim financial statement reflects the financial standing and results of the business activities of the VolgaTelecom Group of companies, which is a provider of local telephony, cellular telephony and other telecommunications services.
Revenue breakdown
In the revenue breakdown of the VolgaTelecom Group of companies, in the first quarter of 2010 36.7% came from local telephony, i.e. RUR 3,111 mln. Revenue from datacom, telematic services (Internet) and telegraph reached RUR 1,578 mln, which accounts for 18.6% of total revenue. Revenue from intrazonal telephony for the reporting period amounted to RUR 1,074 mln, or 12.7% of revenue. Cellular telephony contributed 13.6%, or RUR 1,147 mln to overall revenue.
Revenue breakdown for Q1 2010
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Q1 2010, RUR, mln |
Proportion, % |
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Local telephony |
3,111 |
36.7 |
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Telegraph, datacom and telematic services (Internet) |
1,578 |
18.6 |
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Radio and mobile (cellular) telephony |
1,147 |
13.6 |
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Intrazonal telephony |
1,074 |
12.7 |
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Interconnect and traffic transmission |
1,003 |
11.9 |
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Mobile telephony, wire broadcasting, radio broadcasting, television |
189 |
2.2 |
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Outsourcing and agency |
127 |
1.5 |
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Other services |
17 |
0.2 |
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Revenue from other sales |
222 |
2.6 |
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Total |
8,468 |
100 |
Revenue breakdown by consumer categories for Q1 2010
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Q1 2010, % |
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Households |
58.5 |
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Corporate clients |
19.6 |
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Budget organizations |
7.9 |
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Telecommunications operators |
14.0 |
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Total |
100 |
Expense breakdown
The operating expenses of the Group’s companies amounted to RUR 6,917 mln in the first quarter of 2010. The biggest item in the cost structure was payrolls, amounting to RUR 2,284 mln, or 33% of the total amount of expenses. Depreciation and amortization expenses totaled RUR 1,809 mln (26.2%).
VolgaTelecom’s expense breakdown was as follows:
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Q1 2010, RUR, mln |
Proportion, % |
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Payrolls |
2,284 |
33.0 |
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Depreciation and amortization |
1,809 |
26.2 |
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Interconnect |
908 |
13.1 |
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Materials, repair, maintenance and utilities |
698 |
10.1 |
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Other operating expenses |
1,218 |
17.6 |
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Total operating expenses |
6,917 |
100 |
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Other operating revenue |
471 |
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Total operating expenses, net |
6,446 |
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Investments
The total amount of investments in Q1 2010 amounted to RUR 640 mln in the first quarter of 2010. The largest investment item was the rollout of advanced telecommunications services – 62% or RUR 403.0 mln (organization of õDSL/Ethernet/FTTx access, the expansion of cellular telephony, NGN, etc.). The proportion of investments into the development of cellular telephony stood at 8% of the total amount of investments.
Investment breakdown
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Area of investments |
Q1 2010 |
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RUR, mln |
proportion, % |
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Total amount of investments |
646.0 |
100% |
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Traditional telephony |
6.0 |
1% |
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Advanced solutions (rolling out õDSL/Ethernet/FTTx access, NGN, etc.) |
403.0 |
62% |
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incl. cellular telephony |
52.2 |
8% |
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IT investments |
66.2 |
10% |
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Datacom network |
9.7 |
2% |
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Other infrastructure |
161.1 |
25% |
Own and borrowed capital
The net assets of the VolgaTelecom Group of companies as of March 31, 2010 reached RUR 32,060 mln. In addition, the proportion of own capital in balance-sheet currency increased from the beginning of the reporting period by 3.3% from 60.4% to 63.7%. As of March 31, 2010 interest debt amounted to RUR 8,921 mln, while net debt totaled RUR 6,711 mln.
Debt load
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Q1 2010 |
Dec. 31, 2009 |
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Debt*, RUR, mln |
8,921 |
10,404 |
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Net debt**, RUR, mln |
6,711 |
8,371 |
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Net debt/shareholder equity |
0.21 |
0.27 |
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Net debt/assets |
0.13 |
0.17 |
* The company’s debt is calculated as the sum of liabilities on long-term and short-term credits and loans;
** Net debt is calculated as the sum of borrowed obligations, adjusted by the size of cash & cash equivalents, and also by the sum of ready-for-sale promissory notes and bonds.
Compliance statement
This consolidated financial statement was prepared and presented in accordance with IFRS (IAS) 34 “Interim financial statement” and other International Financial Reporting Standards (IFRS) and the respective interpretations approved by the International Accounting Standards Committee (IASC). All information should be construed in view of the Group’s Annual Consolidated Financial Statement, ended December 31, 2009.
The full text of VolgaTelecom’s Q1 2010 IFRS consolidated financial statement can be viewed on the company’s website at www.vt.ru\4020.