OREANDA-NEWS. On April 29, 2009 Sistema (the “Group”) (LSE: SSA), the largest diversified public corporation in Russia and the CIS, which manages companies operating in the telecommunications, high-tech, oil and energy, radio and aerospace, banking, real estate, retail, mass-media, tourism and healthcare sectors, announced its unaudited consolidated US GAAP financial results for the fourth quarter and the twelve months ended December 31, 2008, reported the press-centre of Sistema.

Fourth quarter highlights
Consolidated revenues of USD 4.0 billion

OIBDA decreased by 39.1% year on year to US 873.2 million with OIBDA margin of 21.7%

Operating income decreased by 63.2% year on year to USD 319.2 million with operating margin of 7.9%

Net loss of US 713.9 million
 
Full year highlights
Consolidated revenues up 24.3% year on year to USD 16.7 billion

OIBDA up 11.1% year on year to US 5.5 billion with OIBDA margin of 32.9%

Operating income was stable year on year and amounted to USD 3.2 billion with operating margin of 19.0%

Net income of USD 62.0 million

Total assets up 2.7% year on year to USD 29.2 billion
 
Key corporate highlights after the end of the reporting period
Acquired controlling stakes in Bashkir Oil and Energy Group for US 2.5 billion with help with VTB Bank credit facility of US 2.0 billion

Signed an agreement with VTB Bank to sell a stake in Sistema-Hals and restructure debt of Sistema-Hals

Sold 50% of voting shares in MTT to Synterra Group

Successfully repaid a put option in the amount of RUB 4.5 billion (approximately USD 130 million) on 75% of outstanding RUB 6 billion (approximately USD 170 million) local bonds
 
Leonid Melamed, President and Chief Executive Officer, commented: “Sistema demonstrated strong revenue and OIBDA growth in 2008, both at a Group level and across our business units. Despite the challenging market conditions, our core businesses reported strong operating and financial results. We had already introduced and begun implementing a programme to increasing efficiency levels across the Group prior to the downturn. As a result, our key businesses have increased their profitability levels and maintained or strengthened their leading positions in their respective markets.
 
The cost optimisation programme has already saved a total of approximately USD 700 million. Part of our dollar-denominated debt has also been converted into roubles, with the share of ruble-denominated loans increasing year on year  from 20% to 35%. 

This has reduced our dependence on foreign exchange fluctuations. In addition, our capital investment programmes have been reduced by USD 700 million. We continue to actively manage our investment portfolio and to focus on projects that generate attractive returns on invested capital and healthy cash flows.”