OREANDA-NEWS. June 6, 2008. North West Telecom JSC Released IFRS Results for year 2007 North West Telecom JSC released the results of its financial and operating activities for the year 2007 according to International Financial Reporting Standards (IFRS). Financial report was audited by Ernst & Young LLC.

 In accordance with IFRS, in 2007 revenue increase by 17.3% and amounted to RUR 24,226 million. Expenses   were RUR 19,945 million, that is 12.3% higher than in 2006. It includes other core expenses, which amounted RUR 476 mln. As the result of the outpaced revenue growth before expenses the operating income increased by 48% and reached RUR 4,281 million.

The largest part, namely 52%, in the revenue structure comes from the local access services, which amounted to RUR 12,598 million according to the results of 2007.

Revenues from new services (dial-up and broadband Internet access, Intellectual Communications Networks’ services, etc.) showed an impressive dynamic, having gained 56% increase in 2007 and reaching RUR 3,313 million. And the share of new services in revenue continues to grow; it reached 13.7% in 2007 compared to 10.3% in 2006.

EBITDA* increased 180.8% within 2007 and was RUR 18,632 million, EBITDA margin gained 44.8 p.p. and reached 76.9%.

Net income of North West Telecom amounted to RUR 10,113 million according to IFRS, having increased almost 8-times compared to 2006.

 Significant growth of such indexes as net income and EBITDA, as well as improvement of the core operating activities and also it were stimulated by divestment of a 15% stake in Telecominvest (see Press-Release dd. 10th July, 2007), the earning after tax was RUR 7,298 million.

As in the previous years, the 2007 IFRS audit report was unqualified. It has been for the first time in the history of the company when North-West Telecom issued IFRS report ahead of other RTOs and now shareholders could look through IFRS report for more than two weeks before the Annual General meeting of the shareholders.