OREANDA-NEWS. On 18 May 2009 was announced, that OJSC VolgaTelecom (RTS: NNSI/NNSIP; MICEX: VTEL/VTELP; ADR: VLGAY), based on the results of its operations in Q I-2009 RAS revenues amounted to RUB 6 655.4 million (growth ratio of 102.8% vs. Q 1-2008). VolgaTelecom’s telecommunications services revenues amounted to RUB 6 339.6 million (103% growth ratio vs. Q 1-2008), sales profit – RUB 1 408.8 (99.3% growth ratio vs. Q 1-2008).

The following factors affected the dynamics of revenues in Q 1-2009:

- Growth of revenues from Internet broadband access services. In the Company’s revenue structure the share of new services revenues has grown by 4.6% vs. similar period of the prior year and accounted for 21.5%.  The subscribers’ base of Internet broadband access services users has grown by 86.4% and amounted to 872 500 subscribers.

- The reduction of revenue growth ratio is related to legislative control of activities, in particular, the abolishment of fee for connection points servicing since March 01, 2008.

- The reduction of telecommunications services consumption caused by the effect of global economic crisis also resulted in the reduction of telecommunications services revenues.

In Q 1-2009 the Company’s expenses accounted for RUB 5 246.6 million (103.8% growth ratio vs. Q 1-2008).

In the expenditure pattern vs. similar period of the prior year the share of labor costs has reduced due to the arrangements of headcount optimization as well as the share of communications operators’ services costs due to the change of pattern of intraoperators’ interaction with backbone Internet providers and reduction of the price for band pass. The share of amortization charges has grown due to the development of telecommunications infrastructure and large volume of commissioning of property, plant and equipment in 2008 end; the share of other costs also has grown – due to lease payments occurred as a result of realization of universal service provision project in 2008.

Indicators of operating efficiency:

- In the reporting period the number of lines per an employee has grown to 167 lines (111.7% growth ratio vs. Q 1-2008);

- Revenue per an employee has grown to RUB 218 000 (114.3% growth ratio vs. Q 1-2008); 

- Revenue per a line – RUR 1 302 (102.3% growth ratio vs. Q 1-2008).

Accounting statement is posted on the Company’s site at: http://www.vt.ru/14866

Furthermore, OJSC VolgaTelecom advises on one-off increase in the net profit by more than 10% in Q 1-2009 vs. Q 4-2008. The Company’s net profit has increased from RUB 379.2 million to RUB 765.2 million or by 101.8%. The change of financial result in Q 1-2009 vs. Q 4-2008 is due to:

- classifying as decrease in financial result of Q 4-2008 of decommissioned idle licenses of ERP-systems of Oracle E-Business Suite due to full installation of the system in 2008 and of a part of work done related to implementation of AMDOCS software product;

- reduction of income tax rate from 24% to 20% since January 01, 2009.