OREANDA-NEWS  On 04 September CenterTelecom, the largest telecommunications operator in Russia’s Central Federal District, reported unaudited operating results for the first half of 2008 issued in accordance with International Accounting Standards (IAS).

Characteristics of operational efficiency

The number of telecommunications lines per employee rose 30.7% to 166.02 lines (against 127 lines for 1H 2007)

Revenue per line rose 19.71% from RUR2,435 in 1H 2007 to RUR2,483.7 in 1H 2008

Revenue per employee for 1H 2008 amounted to RUR 412,300 or 33.3% more than in 1H 2007 (RUR309,300).

Personnel numbers were reduced by 22.1% to 41,075 employees (52,730 in 1H 2007)

CenterTelecom’s income for 1H 2008 3.84% increased against 1H 2007 mainly because of:

fast growth of the number of users of Internet broadband access services under the DOMOLINK brand by 43.87% to 437,372 subscribers (against 304,000 subscribers as of  December 31, 2007). The proportion of income attributable to Internet access services rose to 12.89% (against 9.46% in 1H 2007).

implementation of the “calling party pays” rule implemented starting July 1, 2006 provided growth of income from inter-zone communications by 10.17%, to RUR2.925 billion (RUR2.655 billion in 1H 2007).

Operating expenses of CenterTelecom for 1H 2008 were reduced by 0.56% to RUR12.644 billion (against RUR12.715 billion for 1H 2007). Expense reductions were mainly due to:

13.25% reduction in payments to telecommunications operators because of a change in the system of settlements between operators;

Decrease in labor compensation fund and social payments’ amount in connection with implementation of CenterTelecom’s program for personnel number optimization.