OREANDA-NEWS. On 08 May 2008 CenterTelecom announced the company’s financial results for the first quarter 2008 according to Russian Accounting Standards (RAS).
 
Characteristics of operational efficiency:

The number of telecommunications lines per employee rose 27.5% to 159.16 lines (124 lines for 1Q 2007)
Revenue per line rose 3.4% from RUR1,162.54 in 1Q 2007 to RUR1,202.22 in 1Q 2008
Revenue per employee for 1Q 2008 reached RUR 191,350 or 31.8% more than in 1Q 2007 (RUR145,150)
Personnel numbers were reduced by 20.3% to 42,795 employees (53,714 in 1Q 2007)
Profitability calculated from net profit reached 10.59% in 1Q 2008 against 14.25% in 1Q 2007

The number of users of ADSL under the DOMOLINK brand rose 23.05% in 1Q 2008 to 374,069 users (against 304,000 as of 31 Dec., 2007). The proportion of income attributable to Internet access services rose to 10.23% (against 7.01% in 1Q 2007).
 
Number of main telephone sets put into operations as of 1 April, 2008 increased 1.62% in comparison with 1 April, 2007 reaching 6,666,400 sets (6,560,235 sets as of 1 April, 2007).
 
In 1Q 2008 implementation of the “calling party pays” rule provided growth of income from inter-zone communications by 12.04%, reaching RUR1.508 billion (RUR1.346 billion in 1Q 2007).
 
The 46.72% increase in other expenses in 1Q 2008 against 1Q 2007 is related to the redistribution of expenses for transportation services which is attributable to a switch to outsourcing under CenterTelecom’s program for business process restructuring, and also to charges to the non-governmental pension fund. The increase in rent payment amount is related to lease payments.
 
Commenting on the 1Q 2008 RAS results, Vaagn Martirosyan, General Director, CenterTelecom, said that in general the company’s management is happy with the results for the first quarter of 2008 and considers them confirmation of stable development and appropriateness of the strategy being implemented by CenterTelecom’s management.