OREANDA-NEWS. April 26, 2010. Uralsvyazinform (RTS and MICEX: URSI/URSIP, ADR: UVYZY/UVYZYP) – a universal telecommunications operator in the Urals Federal District and the Perm region – hereby presents its unconsolidated audited financial results for 2009 in accordance with Russian Accounting Standards (RAS).

Highlights of 2009  

With revenue rising by RUR 163.0 mln (+0.4%) the company managed thanks to strict cost management to reduce its expenses by RUR 1,044.2 mln (-3.1%) compared to FY08, which resulted in a dramatic gain in business efficiency indicators.

EBITDA (calculated as pre-tax profit, interest payable, depreciation charges, and lease payments minus interest receivable) which increased by RUR 2,103.6 mln (+15.7%).  EBITDA/revenue increased by 5 percentage points and stood at 37.9% in FY09. 

Net profit increased by RUR 1,391.0 mln, which is 51.9% higher than in 2008.  This metric rose by 3.4% to 10.0%.

Revenue from datacom and Internet access went up by 26.0% and amounted to RUR 6,368.7 mln, while revenue from the provision of broadband Internet access rose by 37.1% to RUR 4,697.9 mln.  The number of broadband Internet users surged 39.7% to 756,100 in 2009.

The company’s investment program amounted to RUR 3,233.9 mln (-57.6% compared to 2008), of which 41% was allocated for the rollout of unregulated services (datacom, Internet access and cellular telephony), and another 34% was invested in developing datacom networks and infrastructure required for the provision of value-added services. 

The proportion of unregulated services (datacom and Internet access) in the company’s telecom revenues increased to 48.9% (up from 46.2% in 2008).

Amid stability on financial markets the company reduced its credit and loan liabilities by 13.9% to RUR 20,598.7 mln.  The ratio of credits and loans to EBITDA decreased to 1.33x (down from 1.79x in 2008).  

Headline financial indicators 

 

2009

2008

2009/2008

Revenue, RUR mln

40,744.0

40,581.0

+0.4%

Revenue from telecom services, RUR mln

39,575.4

39,277.7

+0.8%

Expenses, RUR mln

32,412.2

33,456.4

-3.1%

EBITDA, RUR mln

15,471.2

13,367.6

+15.7%

EBITDA margin

37.9%

32.9%

+5.0%

EBIT, RUR mln

8,331.9

7,124.6

+16.9%

Operating margin

20.4%

17.6%

+2.8%

Pre-tax profit, RUR mln

5,406.8

4,146.4

+30.4%

Net profit, RUR mln

4,068.9

2,677.9

+51.9%

Net margin

10.0%

6.6%

+3.4%

Headline operating indicators

 

2009

2008

2009/2008

Number of subscribers:

fixed line, ‘000

mobile telephony, ‘000

broadband Internet ‘000,

paid television**, ‘000

 

3,722.4

5,684.4*

756.1

120.4

 

3,722.6

5,688.8

541.2

116.8

 

-0.0%

-0.1%

+39.7%

+3.1%

Outgoing intrazonal traffic, mln min

2,041.7

2,292.5

-10.9%

Datacom traffic, TB

95,624.5

23,182.9

 4.1 times

Average number of employees

21,710

23,520

-7.7%

*In 2009 the company took a stricter approach towards eliminating insolvent cellular telephony subscribers.

**Cable television subscribers + Utel.TV interactive television subscribers. 

Breakdown of revenue from telecommunications services 

 

2009

2008

2009/2008

RUR mln

Proportion

RUR mln

Proportion

Cellular telephony

12,998.9

32.8%

13,103.7

33.4%

-0.8%

Local voice

10,455.3

26.4%

10,215.2

26.0%

+2.4%

Datacom and Internet access

6,358.7

16.1%

5,046.1

12.8%

+26.0%

incl. Internet

5,089.2

12.9%

4,062.5

10.3%

+25.3%

Intrazonal telephony

4,557.2

11.5%

5,026.4

12.8%

-9.3%

Interconnect and traffic transit

4,517.6

11.4%

5,211.8

13.3%

-13.3%

Wire broadcasting

280.2

0.7%

262.3

0.7%

+6.8%

Radio communication, radio broadcasting, television

261.2

0.7%

233.1

0.6%

+12.1%

Data transmission

136.3

0.3%

172.2

0.4%

-20.8%

Other services related to core activities

10.0

0.0%

6.9

0.0%

+44.9%

TOTAL

39,575.4

100.0%

39,277.7

100.0%

+0.8%

Breakdown of operating expenses 

 

2009

2008

2009/2008

RUR mln

Proportion

RUR mln

Proportion

Payrolls

6,374.5

19.7%

7,345.7

22.0%

-13.2%

Social insurance contributions

1,351.9

4.2%

1,475.1

4.4%

-8.4%

Depreciation

6,079.9

18.8%

5,254.1

15.7%

+15.7%

Interconnect

5,662.6

17.5%

5,838.6

17.5%

-3.0%

Outsourcing

2,663.6

8.2%

3,283.4

9.8%

-18.9%

Materials

2,028.8

6.3%

2,199.1

6.6%

-7.7%

Other expenses, incl.

8,250.9

25.3%

8,060.3

24.0%

+2.3%

Lease of premises

439.0

1.4%

421.1

1.3%

+4.2%

Deductions to universal service fund

415.8

1.3%

404.6

1.2%

+2.8%

Lease payments

1,587.9

4.9%

1,947.0

5.8%

-18.4%

TOTAL

32,412,2

100.0%

33,456.4

100.0%

-3.1%

Debt load 

 

2009

2008

2009/2008

Long-term credits and loans

13,263.2

15,363.4

-13.7%

Short-term credits and loans

7,335.5

8,560.8

-14.3%

Total credits and loans

20,598.7

23,924.2

-13.9%

Cash

1,581.3

1,059.0

+49.3%

Short-term financial investments

2,995.7

1,502.1

+99.4%

Total cash and short-term investments

4,577.0

2,561.1

+78.7%

Investment breakdown 

 

2009

2008

Total amount of investments, RUR mln

4,234

9,980

Traditional telephony

4%

22%

Value-added services

41%

37%

Datacom networks and infrastructure

34%

20%

Investments and IT projects

10%

8%

Other, incl.

11%

13%

Construction and repair of buildings and other facilities

6%

5%

TOTAL

100%

100%