OREANDA-NEWS. On June 22, 2007 Uralsvyazinform (RTS: URSI/URSIP, ADR: UVYZY/ UVYZYP), the leading carrier of fixed-line and mobile services in the Urals region, Russia reported audited consolidated financial statements for the year ended December 31, 2006 under International Financial Reporting Standards (IFRS). The financial statements were audited by OOO "Ernst and Young", reported the press-centre of Uralsvyazinform.

Revenue increased by 11,7% as compared to 2005 and amounted to US$ 1,2 bln. Although the company lost revenues in ILD/DLD services, the growth was due to revenue gains in mobile services, new services as well as services for operators.

Revenue from mobile services totaled US$ 374,3 mln. (+16,9% on 2005). The segment contributed 29,9% of overall revenues.

Revenues from new services (Internet, ISDN, intelligent networks, etc.) and data transmission services reached US$ 95,6 mln.(+46,9%). The segment contributed 7,6% of overall revenues.

Operating expenses in 2006 increased by 17,5% and totaled US$ 1,1 bln., mainly due to the growth in depreciation and amortization expenses related to fixed assets valuation (+34,1%) as well as personnel expenses (+22,4%) related to growth of pension liabilities expenses.

The fair fixed assets valuation accomplished in 2006 enabled the company to obtain a first unqualified auditor’s report.