OREANDA-NEWS. June 23 2009. The Board of Directors of TTK principal shareholder ‘Russian Railways’ has reviewed and approved TTK’s reporting on year 2008 budget performance. According to International Financial Reporting Standards the consolidated income of TTK group of companies which includes the head company and 18 subsidiaries made 27.5 billion rubles which is 14% higher compared to year 2007 when TTK reported 24 billion rubles of income, reported the press-centre of TTK.

The income from provision of telecommunication services makes the principal source of company’s income and accounts 20.6 billion rubles comparing to 16.9 billion in 2007.

The net income for 2008 reached 1.9 billion rubles which is less than past year’s 2.5 bln roubles. The decrease in net income is linked to the growth of expenses on TTK’s 7-year investment program for broadband retail markets.

In 2008 TTK’s priority focus was on providing services to its shareholder – JSC “Russian Railways”. The digital backbone network operated by TTK provided a reliable, secured and efficient data exchange, offering quality telecommunication services to company’s clients and to the shareholder (‘Russian Railways’). An array of organizational and technical steps, aimed to modernization of exploitation works, allowed to reach 99,998% average channel availability coefficient for the ‘Russian Railways’ technical demands.

In 2008 TTK demonstrated the growth of key commercial indicators, securing its’ key positions on Russian telecommunication market. Company’s market share of national private lines made up 37% with 27% of the Russian international private lines market, occupies 35% in the segment of internet access and 35% in IP VPN market.

In 2008 TTK started to implement its long-term development strategy for 2008-2015. The strategy is aimed at the following major objectives – develop large-scale broadband (BB) Internet access in the regions of Russia, provide local and long-distance telephony (LDC) for individuals and offer a variety of other telecommunication services for retail market. Starting May 2008 TTK has provided broadband access to 3,500 SMBs and 25,000 households and connecting over 6,000 corporate clients to LDC services.

In the past year within the frameworks of the strategy TTK has developed and implemented the unified internal procedures, business processes, technical and technological solutions as well as formed up a team of professional managers to run TTK’s retail operations. TTK has also developed detailed business projects for several dozens of Russian towns secured for the first year of strategy implementation. In 2008 TTK provided internet access services to SMB enterprises in 22 cities of Russia. By the end of 2009 TTK plans to secure technological access to more than 10,000 multi-apartment buildings and provide BB services to more than 75,500 households and 6,500 SMBs.

In 2008 TTK recorded active growth in LDC services sales to its corporate clients. By the end of 2008 TTK was providing long distance calls services to over 6,000 government organizations and corporations in Russia. The volume of the voice-traffic transmitted via TTK’s LDC network surpassed 70 million minutes in 2008. Voice services generated approximately 2 billion rubles. It is anticipated that this income will be 2 times higher and will close to 4 billion rubles this year.

Company TTK strengthened its positions among leading international providers. According to Global Internet Geography Report, TTK’s rating reached 21st position in the list of more than 500 global operators.

In summer 2008 submarine cable system between Nevelsk (Sakhalin) and Ishikari (Hokkaido) constructed in 2007-2008 with joint efforts from TTK and NTT Communications (one of the major Japanese telecommunications operator) started commercial operations. TTK’s fiber-optic network connected Japan and Eurasian continent with up-to-date reliable connection. The company has also upgraded Russian and international segments of its ‘EurasiaHighway’ backbone -- a trans-Russia transcontinental data delivery route. Taking steady ground on East-West transit market, TTK started forming the new telecommunications corridor from North to West.

The 2008 Global financial crisis did not have essential impact on TTK’s development plans. Financial stability was acknowledged by Fitch Ratings, which appropriated TTK long-term eminent default rating, short-term eminent default rating “B” in foreign currency, long-term "A" rating in the national scale with Long term eminent default rating and National outlook ‘Stable’. TTK worked out and employed the anti-crisis measures plan, which is to minimize possible risks of negative influence by global economic processes.

Understanding its social responsibility, the company continued its’ of social projects, including “TTK’s Children Hearts” -- a complex charity program, which is designed to help children with heart-vascular system deceases. In year 2008 this program has allowed TTK to help 105 children with congenital heart disease. TTK transferred approximately 7 mln rubles with another 3,5 mln rubles coming from personal donations of TTK’s staff. Since the beginning of the program 2 years ago TTK was able to help 189 children. Over 1000 TTK’s employees took part in the program helping to perform operations on 46. In total TTK transferred 22.5 mln rubles to help combat congenital heart disease.