OREANDA-NEWS. On 13 May 2008 Sibirtelecom OJSC, operator of telecommunications services in the Siberian Federal District, presented its performance results for the 1st quarter of 2008 prepared in accordance with the Russian Accounting Standards (RAS).

„" Revenues of Sibirtelecom OJSC (Ў§the CompanyЎЁ) without subsidiaries in the 1st quarter of 2008 reached 6,827.1 million rubles, having increased by 490.7 million rubles, or 7.7% against the same period of the year 2007.
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 41.7% (2,847.9 million rubles) of the total revenue.

Substantial elements of the CompanyЎ¦s revenues are revenues from intraareal telephone communication services (1,328.6 million rubles), data transfer and telematic communication services (1,015.3 million rubles) 19.5% and 14.9%, respectively.  Revenues from interconnection and traffic transfer amounts to 12.8% (875.6 million rubles) of the total revenues.
Compared to the same period of the year 2007(without subsidiary business):

„X increase in revenues from rendering data transfer and telematic communication services amounted to 368.2 million rubles, or 56.9%, which is attributed to 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 April 1, 2008 the number of broadband access ports amounted to 234.5 thousand items.

„X increase in revenues from providing local telephone communication services amounted to 42.9 million rubles, or 1.5%, which is governed by the increase in the subscriber base (number of basic telephone sets of parent company increased by 97.5 thousand items, or 2.3% and amounted to 4,312.4 thousand items as for the end of the 1st quarter of 2008);

„X increase in revenues from intraareal telephone communication services amounted to 34.8 million rubles, or 2.7%, due to the increase of traffic from fixed subscribers to networks of cellular operators;

„X increase in revenues from channel leasing amounted to 40.1 million rubles or 65.4%, which is governed by the increased number of leased objects;

„X insignificant decrease in revenues from interconnection and traffic transfer amounted to 35.1 million rubles (-3.9%) which occurred due to cancellation of tariffication of points of connection since March 1.

„" The CompanyЎ¦s expenses (without subsidiary business) in the 1st quarter of 2008 increased by 448.8 million rubles, or by 9.6 % against the same period of 2007 and amounted to 5,132.3 million rubles.

Expenses of salaries, wages and deductions for social insurance (37.8%), depreciation allocations (19.1%), other expenses (13.8), and expenses related to services of communication operators (13.2%).

Compared to the same period of 2007  (without subsidiary business):

„X increase in other expenses amounted to 178.8 million rubles, or 33.9%, 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, deductions for nongovernmental retirement insurance;

„X increase in expenses related to services of communication operators (except for Rostelecom OJSC) amounted to 148.7 million rubles, or 28.0%, due to the increase of traffic from fixed subscribers to networks of cellular operators;

„X amount of the charged fixed asset depreciation has increased by 147.0 million rubles, or 17.6%, due to an active investment policy of the Company aimed at the communication network development.

„" The growth of OIBDA in the 1st quarter of 2008 against the same period of 2007 totaled 188.9 million rubles, or 7.6%.OIBDA margin ЎV 39.2%.

„" Operating profit totaled 1,694.8 million rubles, having increased by 41.9 million rubles, or 2.5%, due to growth of revenue. The operating margin amounted to 24.8%.

„" Profit before taxation has increased by 172.0 million rubles, or 16.4% and amounted to 1,223.3 million rubles, due to increase in operating profit  and decrease in loss from other activities by 130 million rubles which is governed by the profit obtained from payments of damages from rendering universal communication services.

„" Net profit for the 1st quarter of 2008 amounted to 898.7 million rubles, having increased against the same period of 2007 by 20.4%, due to increase in profit before taxation and

„" decrease in effective tax rate by 2.5 percentage points as expenses not acknowledged in profit taxation were decreased.

„" Net profit margin 13.2%.