OREANDA-NEWS. Sistema (LSE: SSA), the largest private sector consumer services company in Russia and the CIS, today announced its unaudited consolidated US GAAP financial results for six months ended June 30, 2007.

According to the Sistema press-service, the first half year results feature the following highlights:

Consolidated revenues up 36.1% year-on-year to US$ 5.9 billion. OIBDA up 34.6% year-on-year to US$ 2.2 billion and OIBDA margin is 36.9%.
Operating income up 41.8% year-on-year to US$ 1.4 billion and operating margin is 24.2%.
Net income nearly tripled year-on-year to US$ 877.1 million.
Total assets up 29.9% year-on-year to US$ 22.5 billion.

Alexander Goncharuk, President and Chief Executive Officer of Sistema, commented: "The 36% year-on-year increase in group revenues for the first six months of 2007 demonstrates the continued rapid growth, expansion and market share gains across our businesses. Non-telecommunications businesses in the group now account for more than a quarter of our total revenues, and our non-listed subsidiaries more than doubled their revenues year-on-year during the first half of 2007, following healthy organic growth and impressive acquisitions. Group net income nearly tripled year-on-year, and reflected significantly improved operating profitability levels and the positive contribution of the investments that we have made. After the end of the period, we have now acquired a 10% stake in Indian telecommunications operator Shyam Telelink. This acquisition is in line with our strategy to extend our footprint into exciting new high growth markets. We remain well positioned in our domestic markets, and have continued the regional expansion of our banking and retail networks through MBRD and Detsky Mir, respectively."