OREANDA-NEWS. Nizhny Novgorod, April 2007. At 2006 year-end OJSC “VolgaTelecom” proceeds amounted to 21 691 million rubles (growth rate - 101,6%). Communication services revenues - 20 366,9 million rubles (97,98%). Communication services revenues share in the proceeds - 93,9%.

The largest share in the structure of revenues falls on revenues from local telephone communication services - 50,9% or 10 360,8 million rubles. The major share of revenues from local telephone communication services – 85% were received from the services of city’s telephone network. At the same time under the conditions of saturation of the market of traditional communication services the gain in revenues from local telephone communication is reducing year after year: in 2006 the gain in revenues amounted to 500,5 million rubles, which is more than three times smaller than in 2005. The major source of revenue gain is the revenues from current payments - 1 351,1 million rubles.

In the total structure of revenues the revenues from intrazonal telephone communication occupy 17,5% or 3 573,6 million rubles, the revenues from connection and traffic transit services - 16,5% or 3 362,6 million rubles.

At 2006 year-end the revenues from communication services based on new technologies amounted to 2 164,1 million rubles or 10,6% of the total amount of revenues from communication services for the reporting period. The gain in revenues - 659,6 million rubles or 43,8% vs. 2005.

In 2006 the revenues from providing the services of Internet access over dedicated line made up 1 084,6 million rubles with the gain of 538,5 million rubles vs. 2005 revenues (81,6% of the gain in revenues from communication services based on new technologies), inclusive of revenues from xDSL-based services to the amount of 511,6 million rubles. The basic factor which allowed for securing dynamic development of Internet wideband access services is the increase in the volume of provided services.

The revenues from radio and TV broadcasting services amounted to 196,7 million rubles (127% vs. 2005). In the structure of this industry revenues the major share falls on cable TV revenues - 122,6 million rubles or 62,3%.

In 2006 OJSC “VolgaTelecom” expenditures made up 16 949,8 million rubles (growth rate - 105,5%). In the Company’s prime cost structure the share of expanses for OJSC "Rostelecom” reduced substantially – from 12,6% to 0,8%. Due to the fact that since January 1, 2006 the revenues from DLD and ILD services are the revenues of DLD and ILD operators, in the structure of the Company’s costs there are no payments for OJSC "Rostelecom” traffic transit. In 2006 such costs items as expenses for interconnect (except “Rostelecom”) and amortization charges had the greatest impact on the gain in prime cost.

Basic financial-economic performances of year 2006:
- Sales profit - 4 741,5 million rubles, (89,6% vs. 2005);
- Pretax earnings - 3 534,2 million rubles, (103,2%);
- OIBDA - 7 603,5 million rubles (97%);
- OIBDA margin (OIBDA in proceeds) – 35,1;
- EBITDA - 7 136,6 million rubles, (105,5%);
- EBITDA margin - 32,9%.