OREANDA-NEWS. On 17 March 2008 was announced, that Sibirtelecom OJSC, operator of telecommunications services in the Siberian Federal District, presents its non-audited preliminary performance results for 2007 prepared in accordance with the Russian Accounting Standards (RAS). The Company do not expect significant deviation of presented information, but some adjustments are possible.

„" Revenues of Sibirtelecom OJSC (Ў§the CompanyЎЁ) without subsidiaries in 2007 reached 26,532.7 million rubles, having increased by 3,590.9 million rubles, or 15.7% against 2006.
The main factors of revenue change in the reporting period were the increase of the number of broadband access users, subscriber base (local telephone communication) and intraareal and Internet traffic.
Revenues from rendering local telephone services amounts to 43.4% (11,526.6 million rubles) of the total revenue. Substantial elements of the CompanyЎ¦s revenues are revenues from intraareal telephone communication services (5,299.5 million rubles) and interconnection and traffic transfer services (3,737.8 million rubles), 20.0% and 14.1%, respectively. Revenues from data transfer and Internet access services amounts to 11.2% (2,979.5 million rubles) of the total revenue. Revenues from cellular communications services amounts to 4.0% (1,066.7 million rubles) of the CompanyЎ¦s total revenues.
Compared to 2006 (without subsidiaries):
„X increase in revenues from rendering local connections services amounted to 1,459.0 million rubles, or 14.5%, which is attributed to the increase in subscriber base (number of basic telephone sets of parent company increased by 98.6 thousand items, or 2.3% and amounted to 4,295.7 thousand items as for the end of 2007) and implementation of new tariff plans since February 1, 2007;
„X increase in revenues from telegraph communications, data transfer and telematic communication services amounted to 1,121.3 million rubles, or 54,2% which is governed by the increase in the number of broadband access users and corresponding increase of revenues from rendering access (dedicated line and dial-up) to the Internet. As of January 1, 2008 the number of broadband access ports amounted to 196.9 thousand items.
„X increase in revenues from intraareal telephone communication services amounted to 1,034.1 million rubles, or 24.2%, due to Ў§Calling Party PaysЎЁ principle which has come into force since July 1, 2006, and the growth of revenues from channel leasing;
„X increase in revenues from cellular communications services (without subsidiary business) amounted to 54.4 million rubles, or 5.4% (the number of cellular subscribers grew 1.4 times and for the end of the reporting year amounted to 540 thousand).

„" The CompanyЎ¦s expenses (without subsidiary business) in 2007 increased by 1,632.3 million rubles, or by 8.4% against 2006 and amounted to 21,165.2 million rubles.

Expenses of salaries, wages and deductions for social insurance (43.6%), depreciation allocations (15.3%), other expenses (13.2%), and expenses related to services of communication operators (11.7%) form a major part of the total amount of expenses.

Compared to 2006 (without subsidiary business):
„X increase of expenses related to services of communication operators (except Rostelecom OJSC) amounted to 831.3 million rubles, or 50.3%, due to change in relations between telecom operators according to regulatory legal acts in the telecommunication sphere, i.e. due to the increase of expenses related to areal call termination because of Ў§Calling Party PaysЎЁ principle coming into full force from July 1, 2006;
„X increase of other expenses amounted to 650.9 million rubles, or 30.4%, due to the increase of leasing expenses (according to concluded leasing agreements for the procurement of equipment under the Ў§Universal serviceЎЁ project), agentЎ¦s fees, software program maintenance services;
„X amount of the charged fixed asset depreciation has increased by 316.5 million rubles, or 10.8%, due to an active investment policy of the Company aimed to the communication network development.
„" The growth of OIBDA in 2007 against 2006 totaled 2,275.1 million rubles, or 35.9%.OIBDA margin ЎV 32.5%.
„" Operating profit totaled 5,367.5 million rubles, having increased by 1,958.6 million rubles, or 57.5%, due to growth of revenue. The operating margin amounted to 20.2%.
„" Profit before taxation has increased by 1,901.0 million rubles, or 102,9% and amounted to 3,748.1 million rubles, due to increase of operating profit (or positive trend of profitability for ordinary activities), growth of revenues from participation in other organizations, and receipt of compensation for rendering universal communication service in amount of 472 million rubles.
„" Net profit for 2007 amounted to 2,793.2 million rubles, having increased against 2006 by 122.7%, due to increase of profit before taxation and decrease of effective tax rate by 6.6 percentage points.
„" Net profit margin 10.5%.
„" Capital investments of Sibirtelecom OJSC (without subsidiaries) in 2007 are estimated at 6.7 billion rubles, having increased against 2006 by 16.2%. Most of the capital investments has been directed to the development of the local telephony, data transfer network, and facilities of telecommunication infrastructure. The share of investments for development of new services (including cellular communications)  in 2007 amounted to 22% from total capital investments.