OREANDA-NEWS. On 26 August 2008 Sibirtelecom (RTS: ENCO/ENCOP, ENCOG/ENCOPG; MICEX: STKM/STKMP; ADRs: ОТС– SBTLY, Frankfurt and Berlin stock exchanges) ISIN: US8257351036, WKN: 260452), a fixed-line telecommunications operator in the Siberian Federal District, presented its H1 2008 financial results drafted to Russian Accounting Standards (RSA).

Sibirtelecom (hereinafter referred to as the Company) net of its subsidiary business, posted revenue amounting to Rub 13.6 bln in H1 2008, which is Rub 800.9 mln higher or up 6.2% compared with the same period last year.

The main factors which led to a change in the company’s revenue in the reporting period were a rise in the number of Internet users, intrazonal and Internet traffic.

In addition, local voice earnings accounted for 41.5% of the company’s revenue mix (Rub 5.7 bln).

Major items in the company’s revenue mix include ISP and intrazonal telephony (Rub 2.7 bln) and datacom (Rub 2 bln), respectively.  Revenue generated from interconnect and traffic transmission account for 12.2% (Rub 1.7 bln) of total revenue.

Compared with the same period in 2007 (not including the subsidiary business):

Datacom and telecom services rose 54.5% to Rub 732.4 mln, which was due to an increase in the number of broadband Inter users, and therefore higher revenue from providing Internet access services (broadband and dial-up).  As of July 1, 2008 the number of broadband Internet ports stood at 273,000;

The increase in revenue from leasing channels amounted to Rub 111.6 mln, or 87.2% due to a rise in the number of leased facilities;

Higher revenue from ISP and intrazonal telephony for a total of Rub 106.1 mln, or 4.1%, which is due to an increase in traffic from fixed-line subscribers on the networks of cellular operators;

Lower revenue from interconnect and traffic transmission for a total of Rub 160.5 mln (-8.7%) which was due to the cancellation of charges at interconnection points as of March 1;

Lower revenue from local voice services for a total of Rub 57.4 mln (-1%), which was due to a 7.2% decrease in the number of installations made, and a 23/5% reduction in the average line distance charge for network access.