OREANDA-NEWS. On 29 May 2008 CenterTelecom reported its Q1 2008 financial results, drafted to Russian Accounting Standards (RAS).

Headline operating indicators

- The number of lines per employee rose 27.5% to 159.16 lines (vs. 124 in Q1 2007);

- Revenue per line in the first quarter of 2008 increased 3.4%, from Rub 1,162.54 in Q1 2007 to Rub 1,202.22 in the reporting period;

- Revenue per employee based on the results of the first quarter of 2008 stood at Rub 191,350, which is 31.8% more than in Q1 2007 (Rub 145,150);

- The average number of employees decreased 20.3% to 42,795 employees (53,714 in Q1 2007);

- Net income margin slipped to 10.59% vs. 14.25% in the year-earlier period.

The broadband Internet subscriber base (Domolink trade mark) rose 23.05% and stood at 374,069 subscribers (vs. 304,000 subscribers as of year-end 2007).  The percentage of revenue from ISP rose to 10.23% (vs. 7.01% in Q1 2007).

The number of main lines as of the end of Q1 2008 rose 1.62% y-o-y and amounted to 6,666,400 (vs. 6,560,235 in Q1 2007).

The effect of the Calling Party Pays principle in Q1 2008 generated stronger intrazonal revenue, up 12.04% to Rub 1,508,000 (vs. Rub 1,346,000 in Q1 2007).

  The 46.72% increase in other expenses in Q1 2008 vs. Q1 2007 is due to higher transportation expenses, due to the assignment of these functions to outsourcing under CenterTelecom’s program for restructuring business processes, and social insurance contributions to a private pension fund.  Higher lease payments are due to an increase in lease payments.

Commenting on the company’s RAS financial results in the first quarter of 2008, general director of CenterTelecom, Vaagn Martirosyan noted that on the whole management is satisfied with the results which CenterTelecom released in the first three months of this year, and believes they point to sustainable development and once again show that the strategy chosen by CenterTelecom’s management is correct.