OREANDA-NEWS. On 24 December 2008 Sibirtelecom OJSC (RTS: ENCO/ENCOP, ENCOG/ENCOPG; MICEX: STKM/STKMP; ADR: ОТС – SBTLY, Frankfurt and Berlin Stock Exchanges – ISIN: US8257351036, WKN: 260452) – operator of telecommunication services in Siberian Federal District provided the results of its activity for nine months of 2008 in accordance with International Financial Reporting Standards.

The financial statements for nine months in accordance with IFRS are given for the first time, earlier Sibirtelecom OJSC had not presented such financial statements.

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 nine months of 2008 reached 27,917 mln rubles.

The main components in the structure of the consolidated revenues of the Company are profits from providing services of local telephony (8,530 mln rubles) and mobile communication services (7,420 mln rubles) or 30.6% and 26.6% respectively. Essential items in the revenue structure are revenues from providing intraareal telephone communication (4,009 mln rubles) and services of telegraph communication, services of data transmission and telematic communication services (Internet) (3,380 mln rubles) or 14.4% and 12.1% respectively. Revenues from providing services of connection and traffic transmission made up 10.9% (3,055 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-traffic).

 Consolidated expenses of the Company for nine months of 2008 reached 23,191 mln rubles.

 The biggest share in the total amount of expenses are expenses for wages, salaries and social contributions (34.4%), depreciation charges (23.2%), other operating expenses (17.7%), costs related to services of communication operators – Russian companies (13.9%), expenses for materials, repair and services, public utility services (9.1%).

The results of activity for nine months of 2008:

 EBITDA totaled 10,192 mln rubles. EBITDA margin amounted to 36.51%.

 The operating profit totaled 5,180 mln rubles. The profit (core activity) includes replenishment from universal communication services amounting to 454 mln rubles. Operating Profit Margin amounted to 18.56%.

 Profit for the reporting period totaled 2,565 mln rubles. Margin of profit for the reporting period amounted to 9.19%.