OREANDA-NEWS. “The Seventh Continent” (further referred to as the Company) announces 2Q and 1H 2007 IFRS results with the review of financial statements by independent auditors.

Total sales in the 2Q 2007 increased 34.3% YoY and reached USD 304.4 mn. 1H 2007 sales amounted for USD 593 mn. and increased 31.6% YoY. The gross profit in 2Q 2007 has grown 32.2% and amounted for USD 93.3 mn. with gross profit margin at the level of 30.7%. 1H 2007 gross profit grew by 29.7% YoY and reached USD 182.5 mn. with 30.8% gross profit margin.

In the 2Q the Company’s EBITDA without the consolidation of the financial results of the LLC “Bank Finservice”[1] results reached USD 36.3 mn. and EBITDA margin comprised 11.9%. EBITDA including the financial results of the LLC “Bank Finservice” reached USD 35.2 mn. and EBITDA margin comprised 11.6%. EBITDA for 1H 2007 without the consolidation of the bank grew to USD 63.6 mn. and the EBITDA margin was 10.7%. 1H 2007 EBITDA including the financial results of the LLC “Bank Finservice” reached USD 57.6 mn. and EBITDA margin was 9.7%.

Net income for the 2Q 2007 reached USD 36.6 mn. with the net income margin of 12% (including the LLC “Bank Finservice”). Net income for the 1H 2007 amounted USD 51.2 mn. with 8.6% net income margin. 2Q net income has grown 204% YoY and 1H 2007 net income has grown 61% YoY. 2Q 2007 non-operating revenues include the revenue in the form of goodwill arisen as a result of acquisition of the JSC “Obyedinennaya torgovaya nedvizhimost” (“Joint Trade Real Estate”) in the sum of USD 15.3 mn.[2] (the fair value of the acquired share in JSC "Joint Trade Real Estate" net assets exceeded the cost of acquisition).