Press release
North-West Telecom hereby announces its H1 2009 RAS financial results.
EBIT stood at Rub 12,790 mln, including telecom services for a total of Rub 11,815 mln. Compared with the same period last year, EBIT increased by 6%, including revenue from telecom services, which rose 5.3%.
The main drivers for revenue growth were earnings from Internet services and datacom as well as intrazonal telephony, which increased by 21.2% and 10% year-on-year, respectively. In absolute terms, revenue from Internet and data totaled Rub 2,403 mln and Rub 1,274 mln from intrazonal telephony in the first six months of 2009.
North-West Telecom’s aggregate cost stood at Rub 10,013 mln in H1 2009, which implies a 20.1% increased compared with the year-earlier period.
The fast pace of costs was attributable to a steep rise in depreciation charges, which reached Rub 2,653 mln (the increase compared with the year-earlier period was 35%), due to implementation of the investment program, a rise in outsourcing expenses, (maintenance and repair), mainly associated with the provision of universal telecom services, and higher operating expenses (electricity and materials).
North-West Telecom’s EBITDA* amounted to Rub 5,253 mln and net profit reached Rub 1,606 mln.
The decline in EBITDA and net profit compared with the same period last year was attributable to a macroeconomic factor – a sizeable loss on foreign exchange rate differences (in 1H 2009 the loss amounted to Rub 439 mln against profit of Rub 92 mln in H1 2008, and also the fact that other revenues were recorded as the financial effect from the financial effect of an increase in the contribution to the charter capital of ZAO RPK Svyazist** in the amount of Rub 634 mln.
In addition, North-West Telecom’s business efficiency remains unchanged: thus, EBITDA margin stood at 41.1% during the first six months of 2009.
* EBITDA is calculated based on the following formula: profit (loss) before taxation interest payable – interest receivable + depreciation and amortization of fixed assets + lease expenses.
** ZAO RPK Svyazist is a 100% subsidiary of NWT, which provides spa and sanatorium treatment services.
North-West Telecom’s balance sheet and profit and loss statement for H1 2009 are posted on the corporate website of NWT in the section entitled “Economics and Finances” (in Russian).
