OREANDA-NEWS. April 26, 2010. CenterTelecom hereby presents its audited financial activities for 2009 in accordance with Russian Accounting Standards (RAS).

CenterTelecom’s 2009 headline financial indicators, RUR, mln 

Indicator

2009

2008

%, Change

Revenue from core activities

36,434

33,715

+8.06

incl. telecom services

34,332

31,872

+7.72

Operating expenses

30,530

26,351

+15.86

incl. depreciation

4,289

4,278

+0.26

EBITDA (1)

16,233

12,207

+32.98

EBITDA margin (2)

44.55%

36.21%

-

EBIT

5,904

7,364

-19.83

Net profit

5,059

2,585

+95.71

 (1)   EBITDA is calculated as profit before taxation plus interest payable plus depreciation plus lease payments minus interest receivable.

(2)    EBITDA margin is calculated as EBITDA/revenue.

 

Efficiency indicators  

The number of lines per employee increased by 27.81% to 236 lines (up from 185 in 2008);

Cost of production per ruble of revenue rose by 5.63 kopecks to  83.79 kopecks (up from 78.16 in 2008);

The average number of employees decreased by 7.97% as of year-end 2009 and stood at 29,005 (down from 31,517 in the year-earlier period);

Net profit margin stood at 13.89% (7.67% in 2008);

EBITDA showed growth as a result of higher efficiency in operating activities, and also a decline in other expenses associated with the revaluation of the company’s foreign currency debt obligations, and an increase in other revenue related to the restoration of a previously created reserve against depreciation of financial investments.  

CenterTelecom’s revenue breakdown in 2009, RUR mln  

Indicator

2009

2008

% Change

 

Intrazonal telephony (1)

6,097

6,250

-2.45

 

Urban and rural telephony

17,237

16,012

+7.65

 

Datacom and Internet access

6,054

4,588

+31.95

 

incl. Internet access

5,151

3,843

+34.04

 

Interconnect and traffic transmission

3,657

3,793

-3.59

 

Outsourcing and agency fees

1,036

1,055

-1.80

 

Other telecom services (primary activities)

1,288

1,229

+4.80

 

 

Revenue from other sales (non-core activities)

1,065

788

+35.15

 

incl. leased assets

784

572

+37.06

 

TOTAL

36,434

33,715

+8.06

 

 (1) Revenue from intrazonal telephony, including revenue from intrazonal communication using pay phones and leasing of intrazonal telecom channels

The number of connections for broadband Internet users (Domolink trade mark) increased by more than 70.14% in 2009 and exceeded 1,191,100 subscribers.  The proportion of revenue from datacom and Internet access increased by 16.62% (up from 13.61% in 2008).
CenterTelecom’s expense breakdown in 2009, RUR mln

Indicator

2009

2008

% change

Depreciation

4,289

4,278

+0.26

Payrolls

8,094

7,334

+10.36

Social insurance contributions

1,809

1,691

+6.98

Materials expenses

2,174

1,791

+21.38

Interconnect

2,636

2,796

-5.72

Deductions to universal service fund

358

328

+9.15

Lease

4,958

2,952

+67.95

incl. lease payments

4,248

2,311

+83.82

Other

6,212

5,181

+19.90

TOTAL

30,530

26,351

+15.86

An increase in lease and other expenses in FY09 compared with the same period in 2008 was attributable to higher lease payments and outsourcing expenses, which, in turn, was due to the fact that CenterTelecom participated in the implementation of a project to phase in a universal service mechanism throughout the territory of the Central Federal District of the Russian Federation.
“The year 2009 was a rather difficult one for the Russian economy in general.  However, the full-year financial and operating results of CenterTelecom point to the company’s sustainable expansion amid attempts to overcome the effects of the economic downturn.  Strong economic efficiency was mainly attributable to the steady and concerted efforts of the management of CenterTelecom which were aimed at systematically overhauling the operator’s business models, reorganizing the sales and post-sales processes, phasing in advanced methods in labor organization and staff incentive, and also using state-of-the-art centralized IT systems.  This year, we intend to remain committed to our strategic development areas, which include value-added telecommunications services and the introduction of advanced solutions in the telecom network within the operator’s regional footprint”, according to the general director of CenterTelecom, Vaagn Martirosyan, commenting on the company’s 2009 performance.