Uralsvyazinform Presents 9M Consolidated Financial Reporting

OREANDA-NEWS. December 17, 2010. Uralsvyazinform (RTS and the Moscow Interbank Stock Exchange: URSI/URSIP, ADR: UVYZY/UVYZYP) - the largest operator of fixed, a mobile services and new services of the Ural region presents the consolidated intermediate financial reporting for 9 months, ended on September, 30th, 2010, according to the international standards of the financial reporting.

The basic financial indicators

The Company prodit following the results of 9 months 2010 increased by 6,0 % and made up RUR 32,1 billion.

Profit growth is provided, mainly, for:

Growth of incomes for mobile services - 23,6 %,

Growth of incomes for data transmission and telematic services (Internet) - 14,0 %,

Relative density of incomes of a noncontrollable telecommunication service (cellular communication, data transmission and the Internet) in the general Company profit made up 54,0 %,

EBITDA [2] increased by 23,1 % and made up RUR 14 546 mln.,

EBITDA margin [3] increased by 45,4 % (by results of 9 months 2009 - 39,1 %),

Operating margin made up 26,6 % following the results of the accounting period (9 months 2009 - 18,9 %),

Net profit has almost doubled and made up RUR 5 745 mln.,

Financial highlights

1 EBITDA is calculated as a sum of pre-tax profit, interest payable, depreciation & amortization, leasing payments less interest receivable.

2 EBITDA margin, Operating margin, Net margin represent EBITDA, Operating profit, and Net profit (Profit for the period) expressed as a percentage of revenue.

The general director of OJSC "Uralsvyazinform" Sergey Lukash estimating results for 9 months 2010 noted: "Results confirm, that the company continues to show confident growth of operational efficiency. Mobile business and broadband access to the Internet act as growth drivers, the gain in these segments has increased by 24 % and on 14 % accordingly, thus they together form already more than half of general gain of the company. The rigid control has provided decrease in expenses almost on 5 % whereas the gain has increased by 6 %. Growth of net profit more than in 2 times became evident result of work for 9 months 2010. The policy on optimization of debt loading has allowed to reduce a pure debt of the company by 40 % from the beginning of year. Realization of strategy for the further strengthening of market positions in segments of a mobile communication, broadband access to the Internet and paid TV creates the strong base to the further successful development of the company on highly competitive market of the Ural region ".