OREANDA-NEWS. Southern Telecommunications Company (“UTK”) (RTS: KUBN, KUBNP; MICEX: UTEL, UTELP; ADR OTC: STJSY, KUE FRA)], the principal fixed-line telecommunications provider for Russia’s Southern Federal District, today announced its financial results for the first nine months of 2006 in accordance with Russian Accounting Standards (RAS).

Revenue for the nine months of 2006 amounted to RUR 12,866.9 million (USD 471 million), a decrease of 2.96% over the comparable period in 2005. Revenue from new value-added services increased to RUR 1,292.5 million representing a year-on-year increase of 26.21%, and now accounts for 10.7% of total telecom revenues (versus 7.8% for the same period of 2005).

For nine months of 2006, EBITDA increased by 44.7% year on year to RUR 5,439.9 million (USD 199 million). EBITDA margin was 42.3%, which is up 13.98 percentage points over nine months of 2005.

Operating profit grew 19.20% over 9m2005 to RUR 3,918 million. The Company’s net income was up 669.6% to 1,402.2 million roubles.