OREANDA-NEWS. On May 03, 2007 Sibirtelecom OJSC (RTS: ENCO/ENCOP, ENCOG/ENCOPG; MICEX: STKM/STKMP, ADR: OTC – SBTLY, Frankfurt and Berlin Stock Exchanges - ISIN: US8257351036, WKN: 260452), the operator of telecommunications services in the Siberian Federal District, presented its results for the 1st quarter of 2007 prepared in accordance with the Russian Accounting Standards (RAS), reported the press-centre of  Sibirtelecom OJSC. Revenues of Sibirtelecom OJSC (“Company”) without subsidiaries for the 1st quarter of 2007 amounted to 6,336.4 million rubles, increased by 1,052.8 million rubles or 19,9% against the same period of 2006.


The main factors of revenue change in the reporting period were increase of subscriber base, intrazone and Internet traffic, development of cellular communications.
Revenues from rendering local connection services amount to 44,1% (2,792.5 million rubles) of the Company’s revenues. A substantial elements of the Company’s revenues are revenues from intrazone telephone communication services (1,293.8 million rubles) and interconnection and traffic transfer services (910,7 million rubles), 20,4% and 14,4% respectively. Revenues from document telecommunications services amount to 11,1% (700,2  million rubles), where 72,5% - revenues from Internet access services.
Revenues from cellular communications services amount to 4,0% (253,6 million rubles) of the Company’s revenues.


Compared to the same period of 2006 (without subsidiaries):
- increase of revenues from intrazone telephone communication services amounted to 444,7 million rubles or  52,4% due to including into that item since July 1, 2006 revenues of fixed line subscribers’ connections  to mobile line subscribers in the same settlement and  increase of revenues from channel leasing;
- increase of revenues from rendering local connections services amounted to 334,9 million rubles or 13,6%, which is attributed to the increase of rendering services volume and new tariff plans implementation since February 1, 2007 according to subscription fee for urban and rural telephone communications;
- increase of revenues from document telecommunications services amounted to 237,8 million rubles or 51,4% that was mainly caused by increase of broadband access users, increase of  Internet access services volume;
- increase of revenues from cellular communications services amounted to 33,4 million rubles or 15,2%.

The Company’s expenses (without subsidiaries) for the 1st quarter of 2007 increased by 788,6  million rubles or 20,2% against the same period of 2006 and amounted to 4,683.5 million rubles. Expenses related to wages, salaries and deduction for social insurance (42,2%), depreciation charges (17,8%), costs related to services of communication operators  (11,3%) and other expenses (11,3%) constitute a major share in the total amount of the expenses.

Compared to the same period of 2006 (without subsidiaries):
- increase of expenses related to services to communication operators (except for Rostelecom OJSC)  amounted to 338,5 million rubles or 176,4% due to change in relations between telecom operators according to regulatory legal acts in telecommunication branch;
- increase of expenses related to remuneration to employees and social deductions amounted to  208,6 million rubles or 11,8%. Major factor determining this increase was the growth of the average wage size according to situation on the labour market and quarterly assessments to reserve for yearly remuneration payment (according to account policy of the Company for 2007);
- increase of other expenses amounted to 110,6 million rubles or 26,6% mainly caused by increase of expenses for leasing (according to concluded leasing agreements for equipment delivery under the project “Universal service”), assessments to non-state pension fund, agent’s fees.

The increase of the OIBDA in the 1st quarter of 2007 against the same period of 2006 totaled 333,6 million rubles or 15,5%. OIBDA margin - 39,2%. Operating income totaled 1,652.9 million rubles, having increased by 264,2 million rubles, or 19%. The operating margin is 26,1%. Income before taxation increased by 107,4 million rubles or 11,4% and amounted to 1,051.3 million rubles. Net income totaled 746,2 million rubles, having increased by 10,8% against the same period of 2006. The net income margin - 11,8%.