Recent news

31.07.2009
Sibirtelecom reports H1 2009 RAS financial results

Press release

Sibirtelecom (RTS: ENCO/ENCOP, ENCOG/ENCOPG; MICEX: STKM/STKMP; ADR: ОТС– SBTLY, Frankfurt and Berlin stock exchanges ISIN: US8257351036, WKN: 260452) – a provider of telecommunications services in the Siberian Federal District hereby presents the results of its 1H 2009 business results in accordance with Russian accounting standards (RAS).

Revenue

· The revenue of Sibirtelecom (hereafter, the Company) not including the subsidiary business amounted to Rub 13,985.6 mln in the first six months of 2009, which is 2.3% higher than in the same period last year.

The main factors driving the Company’s re revenue during the reporting period were development of broadband Internet access services.

Revenue breakdown (Rub mln)

Type of income

H1 2009

H1 2008

Change

Rub, mln

%

Local telephony services

5,811.1

5,668.9

142.2

2.5

including:

universal telecom service

0.4

0.3

0.1

33.3

Telegraph, datacom and telematic telecom services

2,801.8

2,187.3

614.5

28.1

including:

datacom and ISP services

2,683.4

2,075.3

608.1

29.3

Intrazonal telephony

2,520.4

2,689.9

(169.5)

(6.3)

Interconnect and traffic transmission

1,319.9

1,674.1

(354.2)

(21.2)

Mobile (cellular) telephony

529.7

532.6

(2.9)

(0.5)

Line leasing

392.2

239.6

152.6

63.7

Outsourcing and agency

252.3

302.9

(50.6)

(16.7)

Mobile radio communication, wire broadcasting, radio broadcasting, television

217.4

213.3

4.1

1.9

Services provided for main types of business activity

140.2

156.2

(16.0)

(10.2)

Other services related to main types of business activity

0.6

2.3

(1.7)

(73.9)

Total

13,985.6

13,667.1

318.5

2.3

In the company’s revenue breakdown, the biggest share falls to earnings from local telephony (41.6%) or Rub 5,811.1 mln.

The main revenue items included earnings from the provision of datacom and Internet Access (Rub 2,683.4 mln) and intrazonal telephony (Rub 2,520.4 mln), which account for 19.2% and 18% of revenue, respectively. Revenue generated from interconnect and traffic transmission accounted for 9.4% (Rub 1,319.9 mln) of total revenue. Revenue from the provision of cellular telephony accounted for 3.8% of the total (Rub 529.7 mln).

Compared with the same period in 2008 (not counting the subsidiary business):

the increase in revenue from provision of datacom and Internet access stood at about Rub 608.1 mln, or 29.3%, which was due to an increase in the number of broadband Internet users and accordingly higher ISP revenue. As of July 1, 2009 the number of broadband Internet ports amounted to 501,500;

the increase in revenue from line leasing stood at Rub 152.6 mln, or 63.7%, which is due to an increase in the number of facilities under lease;

the increase in revenue from provision of local telephony amounted to Rub 142.2 mln, or 2.5%. The rise in earnings was due to an increase in the subscriber base (the number of main telephone lines went up by 27,900 at the parent company, or 0.6% and stood at 4,358,800 at the end of the first six months of 2009) and the indexation of regulated tariffs beginning on March 1, 2009);

an increase in revenues from interconnect and traffic transmission, which totaled Rub 354.2 mln, or 21.2%, which was mainly due to the cancellation since March 1, 2008 of tariffs charged from interconnection points;

the decrease in revenue from the provision of intrazonal telephony amounted to Rub 169.5 mln, or 6.3%, which is due to a decline in traffic and a decrease in the average billing charge;

the decrease in revenues for outsourcing and agency services provided under agreement with Rostelecom, amounted to Rub 50.6 mln, or 16.7%.

the decline in revenue was also attributable to a decrease in the volume of services provided to users on the part of Rostelecom, and also the stipulation of direct contracts by users with Rostelecom.

Expenses

The company’s expenses (not including the subsidiary business) increased by Rub 1,165.2 mln during the first six months of 2009, or 10.9% compared with the same period in 2008 and amounted to Rub 11,869.6 mln.

Breakdown of expenses (Rub, mln)

Type of expense

H1 2009

H1 2008

Change

Rub, mln

%

Payrolls

(3,425.6)

(3,330.8)

(94.8)

2.8

Depreciation of fixed assets

(2,318.9)

(1,971.4)

(347.5)

17.6

Interconnect (not including Rostelecom)

(1,340.0)

(1,355.1)

15.1

(1.1)

Outsourcing

(1,242.7)

(893.3)

(349.4)

39.1

Social insurance contributions

(866.1)

(787.6)

(78.5)

10.0

Material expenses

(639.1)

(785.9)

146.8

(18.7)

Lease payments

(340.6)

(325.1)

(15.5)

4.8

Rostelecomservices

(208.8)

(73.1)

Recent news

31.07.2009 Sibirtelecom reports H1 2009 RAS financial results

31.07.2009
Sibirtelecom reports H1 2009 RAS financial results