OREANDA-NEWS. On 29 May 2008 Sibirtelecom, a telecom operator in the Siberian Federal District, presented its audited results for 2007, drafted to Russian Accounting Standards (RAS).

The revenue of Sibirtelecom  (hereinafter, the Company) not including its subsidiary business in Q1 2008 reached Rub 6,827.1 mln, increasing Rub 490.7 mln or 7.7% compared with the same period last year.

The main factors which changed the company’s revenue in the reporting year include a rise in the number of Internet users, the subscriber case (local voice), intrazonal and Internet traffic.

As for the company’s revenue mix, 41.7% consists of local voice (Rub 2,847.9 mln).  Large portions of revenue came from provision of intrazonal telephony (Rub 1,328.6 mln) and datacom and telematic services (Rub 1,328.6), 19.5% and 14.9%, respectively. Revenues from ISP and datacom account for 11.2% (Rub 2,979,500,000) of the total amount of revenue.  Revenue from interconnect and traffic transit accounted for 12.8%% in the revenue mix (Rub 875.6 mln).

Compared to the same period in 2007 (not including the subsidiary business):

- revenue rose from the provision of datacom and telematic services at stood at Rub 368.2 mln, or 56.9%, which was due to a rise in the number of broadband Internet users and correspondingly higher revenue from access (broadband and dial-up) to the Internet.  As of April 1, 2008 the number of broadband ports stood at 234,500.

- the rise in revenue from provision of local voice amounted to Rub 42.9 mln, or 1.5%.  Higher revenues were due to an increase in the subscriber base (the number of the parent company’s main telephone lines rose 97,500 or 2.3% and stood at 4,312,400 as of the end of Q1 2008);

- the increase in revenue from the provision of intrazonal telephony came to Rub 34.8 mln, or 2.7%, which is due to higher tariffs from fixed-line subscribers on the network of cellular operators;

- the rise in leased telecom channels was Rub 40.1 mln, or 65.4%, which is due to an increase in the number of facilities leased out;

- a slight decrease in revenue from interconnect and traffic transmission equal to Rub 35.1 mln (-3.9%) was due to the elimination of paid charges at interconnect points as of March 1.

The company’s expenses (not including the subsidiary business) rose by Rub 448.8 mln in Q1 2008 or 9.6% compared with the same period in 2007 and totaled Rub 5,132.4 mln.

All in all, the largest portion of the company’s expenses came from payrolls and social insurance contributions – 37.8%, depreciation charges – 19.1%, other expenses – 13.8% and interconnect fees – 13.2%.

Compared with the same period in 2007 (not including the subsidiary business):

- the increase in other expenses stood at Rub 178.8 mln, or 33.9%, which is due to higher leasing expenses (pursuant to lease contracts stipulated for the delivery of equipment under the “Universal Service” project, agency fees, software support services, and private pension insurance;

- the increase in interconnect fees (except Rostelecom) stood at Rub 148.7 mln, or 28%, which is due to bigger traffic from fixed-line subscribers on cellular operators’ network;

- the amount of depreciation charges for fixed assets rose by Rub 147 mln, or 17.6%, which is due to the Company’s intensive investment policy aimed at network rollout.

- the rise in OIBDA in Q1 2008 compared to the same period in 2007 was Rub 188.9 mln, or 7.6%.  OIBDAmarginstoodat39.2%.

- EBIT amounted to Rub 1,694.8, an increase of Rub 41.9 mln or 2.5% which was due to higher revenue.  EBIT margin reached 24.8%.

- Pre-tax profit rose Rub 172 mln, or 16.4% and stood at Rub 1,223.3 mln due to higher sales revenue and a Rub 1,223.3 mln decrease in losses from other activity as a result of revenue received from compensation of losses from the provision of universal services.

- Net profit in Q1 2008 stood at Rub 898.7 mln, which is 20.4% higher than in the same period in 2007 due to higher pre-tax profit and a 2.5% reduction in the effective tax rate in connection with a decline in the share of expenses not subject to exemption from income tax.

- Net profit margin stood at 13.2%.