Moscow, September 1, 2010 – CenterTelecom, the biggest telecommunications operator of Russia's Central Federal District, has summed up its unaudited operating results for the first six months of 2010 in accordance to IFRS.
Basic financial indicators, RUB million
|
|
1H 2010 |
1H 2009 |
Absolute deviation |
Relative deviation, % |
|
Revenues |
19,976 |
18,212 |
1,764 |
9.69 |
|
Depreciation and amortization |
(3,270) |
(3,195) |
(75) |
2.35 |
|
Operating expenses (net) |
(13,768) |
(12,721) |
(1,047) |
8.23 |
|
Interest paid |
(1,033) |
(1,500) |
467 |
-31.13 |
|
OIBDA |
9,478 |
8,686 |
792 |
9.12 |
|
Operatingprofit |
6,208 |
5,491 |
717 |
13.06 |
|
Profit before tax |
5,214 |
3,875 |
1,339 |
34.55 |
|
Net profit attributable to shareholders of the parent company |
4,156 |
2,927 |
1,229 |
41.99 |
|
Net profit for the reporting period |
4,155 |
2,927 |
1,228 |
41.95 |
|
OIBDA margin |
47.45% |
47.69% |
- |
- |
|
EBITDA[1] |
9,458 |
8,461 |
997 |
11.78 |
|
EBITDA margin [2] |
47.35% |
46.46% |
- |
- |
|
Net profit margin [3] |
20.80% |
16.07% |
- |
- |
|
Net cash from core activities |
7,896 |
8,122 |
(226) |
-2.78 |
|
Net cash spent for investments |
(3,330) |
(2,143) |
(1,187) |
55.39 |
|
Net cash used in financing activities |
(4,080) |
(2,799) |
(1,281) |
45.77 |
|
|
As of June 30, 2010 |
As of December 31, 2009 |
Absolute deviation |
Relative deviation, % |
|
Fixed assets |
47,379 |
47,264 |
115 |
0.24 |
|
Long term liabilities |
12,030 |
15,929 |
(3,899) |
-24.48 |
|
Current liabilities |
13,284 |
11,962 |
1,322 |
11.05 |
|
Net debt [4] |
12,066 |
16,558 |
(4,492) |
-27.13 |
Income structure for 1H 2010, RUB million
|
|
1H 2010 |
1H 2009 |
Relative deviation, % |
|
Local telephony services |
9,292 |
8,262 |
12.47 |
|
Intra-zone telephony services |
2,757 |
2,869 |
-3.9 |
|
Interconnection and traffic transfer services |
2,001 |
1,892 |
5.76 |
|
Data transmission and telematic services (Internet access) |
3,652 |
2,998 |
21.81 |
|
Cooperation and agency services |
526 |
533 |
-1.31 |
|
Payment for installation and connection |
183 |
228 |
-19.74 |
|
Mobile telecommunications, wire broadcasting, radio and TV |
375 |
351 |
6.84 |
|
Provision of telephone channels for use |
203 |
194 |
4.64 |
|
Mobile telecommunications services |
170 |
158 |
7.59 |
|
Telegraph communications network services |
109 |
102 |
6.86 |
|
Other services |
94 |
105 |
-10.48 |
|
Income from other sales |
614 |
520 |
18.08 |
|
including income from lease of assets |
432 |
376 |
14.89 |
|
Total |
19,976 |
18,212 |
9.69 |
For the first half of 2010 CenterTelecom's revenues increased by 9.59% against the same period of 2009. Among key drivers of growth were:
- increase in the number of broadband Internet subscribers by 55.5% (1,404,208 users) against the comparable period of 2009 (902,739 users). It contributed to 21.81% growth of revenues from data transmission and telematic services (RUB3.652 billion) in comparison with 1H 2010.
- 12.47% rise in revenues from local telephone communications services to RUB9.292 billion against the same period of 2009. It was mainly caused by switch of the company's subscribers to time based billing; over 50% of these subscribers have switched to unlimited plans (it led to significant increase in ARPU). Another factor contributed to the rise in revenues from local telephony was an adjustment of tariffs (9.6% rise in tariffs in Russia's Central Federal District on the average) in February 2010.
CenterTelecom’s operating expenses structure (net) in 1H 2010, RUB million
|
|
1H 2010 |
1H 2009 |
Relative deviation, % |
|
Personnel costs |
5,121 |
4,914 |
4.21 |
|
Depreciation and amortization |
3,270 |
3,195 |
2.35 |
|
Material costs, repair, maintenance, public utility services |
1,978 |
1,736 |
13.94 |
|
Expenses on telecommunications operators’ services |
1,567 |
1,418 |
10.51 |
|
Transport and postal services |
677 |
555 |
21.98 |
|
Taxes except profit tax |
458 |
433 |
5.77 |
|
Outsourced services and administrative expenses |
239 |
225 |
6.22 |
|
Expenses related to agency services |
492 |
466 |
5.58 |
|
Expenses on fire protection and security services |
212 |
208 |
1.92 |
|
Reimbursement of losses from provision of universal telecommunications services |
(1,483) |
(1,450) |
2.28 |
|
Charges to Universal Telecommunications Service Fund |
196 |
178 |
10.11 |
|
Advertising expenses |
209 |
97 |
115.46 |
|
Membership fees, expenses on charitable activities and trade union organizations |
176 |
19 |
826.32 |
|
Other operating revenues |
(166) |
(64) |
159.38 |
|
Other operating expenses |
449 |
436 |
2.98 |
|
Rent payments |
373 |
355 |
5.07 |
|
Total: |
13,768 |
12,721 |
8.23 |
Vaagn Martirosyan, General Director, CenterTelecom, commenting on the company's results, said: "CenterTelecom demonstrates stable and strong operating results: the number of its broadband Internet services subscribers is growing, the company's net profit is increasing, and its debt burden is being reduced steadily."
CenterTelecom’s IFRS unaudited consolidated financial statement for 1H 2010 is available at the company's web site.
[1] EBITDA is calculated as earnings before taxes minus depreciation minus net interest receivable (net).
[2] EBITDA margin is calculated as EBITDA/revenues.
[3] Net profit margin is calculated as profit for the reporting period/revenues.
[4] Net debt is calculated as a sum of long and short term liabilities on loans, borrowings and financial lease minus cash and cash equivalents.
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