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News

1H 2008 Operational and Financial Results under RAS

11.08.2008

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Ekaterinburg – August 11, 2008 – Uralsvyazinform (RTS: URSI/URSIP, ADR: UVYZY/ UVYZYP), the leading carrier of fixed-line and mobile services in the Urals region, Russia reports the unconsolidated financial and operational results for the 1H 2008 prepared under Russian Accounting Standards (RAS).

  • Revenues increased by 14.6% on 1H 2007 and totaled US$ 834.5 mln. The revenue growth is mainly due to the gains in:
    • Mobile services (up 19.2%)
    • New services (up 65.7%)
  • EBITDA[1] increased by 9.9% on 1H 2007. EBITDA margin amounted to 34.4%. Operating margin – 19.7%.
  • Net profit decreased by 21.0% and amounted to US$ 68.2 mln. Net margin amounted to 8.2%.
  • Subscriber base totaled 9.1 mln., including 5.4 mln. GSM mobile subscribers.

Operational and financial highlights:*

Financial 1H 2008 1H 2007 Change, %
Revenues, US$ mln* 834,5 728,0 +14,6%
Costs, US$ mln 669,7 545,5 +22,8%
EBITDA, US$ mln 286,8 261,1 +9,9%
EBITDA margin 34,4% 35,9% -
Operating profit, US$ mln 164,8 182,5 -9,7%
Operating margin 19.7% 25.1% -
Profit before income tax, US$ mln 98.1 124.8 -21.4%
Net profit, US$ mln 68.2 86.3 -21.0%
Net margin 8.2% 11.9% -
Operational 01/07/2008 01/07/2007 Change, %
Fixed-line subscribers, million 3.7 3.7 0.0%
Mobile subscribers, million 5.4 4.6 +17.4%
Broadband subscribers, thousand 392.2 192.4 +103.8%
Digitalization of local fixed-line networks, % 74.9% 73.7% +1.6%
Penetration of fixed services, % 28% 28% -
Penetration of mobile services, % 100% plus 100% plus -
Number of employees 24,073 26,873 -10.4%

* Here and henceforth currency conversions are based on average exchange rates: 1H 2008 – RUR 23.9, 1H 2007 – RUR 26.1
[1] EBITDA is calculated as a sum of pre-tax profit, interest payable, depreciation and amortization, leasing payments less interest receivable.

To view complete accounting statements of Uralsvyazinform as of 1H 2008 under RAS click here

Please download full PDF version to continue with 1H 2008 Operational and Financial Overview. 1H 2008 Operational and Financial Overview.

For additional information, please contact IR department on tel. +7 343 379 1219, +7 343 379 1859 or e-mail: [email protected].
The most recent company information is also available from this website and www.skrin.ru (complex disclosure information system) or URSI_RU page in Bloomberg system and URSI.RTS page in Reuters system.