OREANDA-NEWS  On 08 October was announced, that Sibirtelecom OJSC (RTS: ENCO/ENCOP, ENCOG/ENCOPG; MICEX: STKM/STKMP; ADR: ОТС - SBTLY, Frankfurt and Berlin Stock Exchanges – ISIN: US8257351036, WKN: 260452), an operator of telecommunication services in Siberian Federal District, published its consolidated financial statements for the first six months of 2008 (non-audited) that were made in compliance with international financial reporting standards (IFRS).

The consolidated financial statements include assets, liabilities and results of activity of Sibirtelecom OJSC (hereinafter – Company) and its subsidiary companies that provide mobile communication and other telecommunication services as their principal activity.

Consolidated revenues of the Company for the first six months of 2008 increased by 1,454 mln rubles or by 8.5% in comparison with the similar period of the last year. 

The main components in the structure of the consolidated revenues of the Company are profits from providing services of local telephony (5,709 mln rubles) and mobile communication services (4,815 mln rubles) or 30.9% and 26.1% respectively. Essential items in the revenue structure are revenues from providing intraareal telephone communication (2,662 mln rubles) and services of connection and traffic transmission (2,058 mln rubles) 14.4% and 11.1% respectively. Revenues from providing services of data transmission, Internet and telematic communication services make up 11.5% (2,122 mln rubles) of the total revenues.

The main factors of changing profits within the reporting period were the growth of the base of mobile communication subcribers, development of broadband access services: the growth of users of Internet services and Internet-graphics.

In comparison with the similar period of 2007, in the first six months of 2008:

The revenues grew the most from providing services of data transmission and telematic communication – 747 mln rubles or 50.4%. The main factors – the growth of users of broadband access services (by July 1, 2008 the amount of broadband ports was 273 thousand) and, respectively, the growth of income from providing Internet access (allocated and dial-up).

The growth of revenues from providing mobile services amounted to 438 mln rubles or 10.0%. due to the growth of the subscriber base (within the reporting period the number of mobile communication subscribers increased  1,36 times and made up 4.3 mln.);

The growth of revenues from providing other services (non-core types of activities) made up 165 mln rubles or 56,3% due to the growth of incomes from assets leasing;

The growth of revenues from providing intraareal telephone communication services made up 113 mln rubles or 4.4%, which was mainly a result of the growth of traffic from fixed subscribers of mobile operators net.

Consolidated expenses of the Company for the first six months of 2008 grew by 1,326 mln rubles or by 9.5% in comparison with the similar period of the previous year and made up 15,239 mln rubles.

The biggest share in the total amount of expenses are expenses for wages, salaries and social contributions (35.0%), depreciation charges (23.0 %), other operating expenses (16.9%), costs related to services of communication operators – Russian companies (14.0%).

Compared to the same period of 2007, during the first six months of 2008:

the accumulated depreciation grew by 566 mln rubles or by 19.7%, which was connected with the aggressive investment policy of the Company aimed at the development of the network;

increase of expenses related to services of communication operators (Russian companies) made up 388 mln rubles or 22.8% due to increase of traffic payable according to the norms and laws established within branch for operators interrelations;

increase of other operating expenses amounted to 249 million rubles or 10.9% mainly caused by the increase of leasing expenses (in accordance with leasing agreements for providing equipment within the frames of the project “Universal Service”), agents commission, services for accompanying program products, payments for non-state pension insurance, expenses from goods retirement.

The increase of the EBITDA in the first six months of 2008 against the same period of 2007 totaled 770 million rubles or 12.4%. EBITDA margin – 37.9%.

The operating profit (core activity) totaled 3,510 million rubles, having increased by 208 million rubles, or 6.3%. The operating profit (core activity) includes replenishment from universal communication services amounting to 288 million rubles. The operating profit margin amounted to 19.0%.

Profit before taxation made up 2,714 million rubles, having increased by 169 million rubles, or 6.6%, due to the positive profit dynamics in core types of activity.

The income for the reporting period totaled 2,005 million rubles, having increased by 4.8% against the same period of 2007 due to increase of profit before taxation. The income margin for the reporting period – 10.9%.

Detailed information are available here.