OREANDA-NEWS. January 11, 2011. Southern Telecommunications Company (UTK) [(RTS: KUBN, KUBNP; MICEX: UTEL, UTELP; ADR OTC: STJSY, KUE FRA)], the largest fixed-line telecommunications operator in the Southern and North-Caucasian federal districts of Russia, hereby announces its unaudited financial results for the first nine months of 2010 in accordance with international financial reporting standards.  Earlier, UTK had not presented such reports.

For the first nine months of 2010 UTK’s revenue amounted to RUR 17,505 mln.  More than 42% of UTK’s revenue came from local voice services.  Revenue from telegraph, datacom and telematic services (Internet) reached RUR 4,997 mln, which accounted for 28.5% of the operator’s revenue.  For the first nine months of 2010 intrazonal revenue amounted to RUR 2,392 mln or 13.7% of total revenue. 

Revenue breakdown: 

Name of indicator, RUR, mln

9M10

Proportion, %

Revenue

17,505

100.0

Local voice

7,440

42.5

Telegraph, datacom and telematic services (Internet)

4,997

28.5

Intrazonal telephony

2,392

13.7

Interconnect and traffic transmission

1,361

7.8

Outsourcing and agency fees

322

1.8

Radio and mobile (cellular) telephony, wire broadcasting, radio broadcasting, television

268

1.5

Other services

66

0.4

Other revenue

659

3.8

The Group’s operating expenses for the first nine months of 2010 amounted to RUR 14,156 mln.  The biggest proportion in its cost structure fell to payrolls for a total of RUR 4,746 mln (33.5%).  Expenses for depreciation and amortization totaled RUR 3,386 mln (23.9%). 

Expense breakdown 

Name of indicator, RUR, mln

9M10

Proportion, %

Operating expenses

(14,156)

100.0

Payrolls

(4,746)

33.5

Depreciation and amortization

(3,386)

23.9

Materials, repair and maintenance, utility services

(1,959)

13.9

Interconnect

(1,428)

10.1

Other operating expenses

(2,637)

18.6

EBITDA for the first nine months of 2010 reached RUR 7,431 mln, while EBITDA came in at 42.5%.  The Group’s net profit came in at RUR 2,524 mln, while net profit margin reached 14.4%.  Net debt totaled RUR 17,885 mln, while Net debt/EBITDA came in at 2.41x.

Main efficiency and debt burden indicators 

Name of indicator

Unit of measurement

9M10

EBITDA*

RUR, mln

7,431

EBITDA margin

%

42.5

Net profit

RUR, mln

2,524

Net profit margin

%

14.4

Net debt**

RUR, mln

17,885

Net debt/EBITDA

 

2.41

*EBITDA is calculated as the sum of pre-tax profit, interest expenses, depreciation and amortization adjusted for interest revenue.
**Net debt is calculated as the sum of long-term and short-term borrowed liabilities minus cash & cash equivalents.