JSC North-West Telecom has summed up the results of the financial and business operation for the first half of 2010 according to RAS.  

Revenue reached RUR 13,954 million, including RUR 12,826 million from communication service s . As compared to the same period of the last year, revenue increased by 9.1%, including revenue from communication service s by 8.5%.

The main drivers of the revenue growth were the revenue from the Internet and data transmission service s and revenue from the local access service s , which have grown by 18.5% and 7.3% respectively as compared to the same period of the last year. In absolute terms, the revenue from the Internet and data transmission amounted to RUR 2,847 million and that from the local access RUR 7,108 million.

The costs of JSC N.W.Telecom in the 1st half of 2010 amounted to RUR 11,862 million, having increased by 7.7% as compared to the 1st half of 2009.

Thus, according to the results of the 1st half of 2010, JSC North-West Telecom revenue growth outpaced growth in operating expenses, which proves the efficiency of the costs saving program and the successful marketing policy , due to this items North-West Telecom could increase the revenue from communication services..  

EBITDA* in the 1st half of 2010 has amounted to RUR 6,380 million, which is 21.2% higher than for the same period of the last year, the EBITDA margin having grown by 4.6 p.p., to 45.7%. JSC North-West Telecom’s net income for the 1st half of 2010 amounted to RUR 2,306 million, which is 43.5% higher than in the 1st half of 2009.

Such a significant increase in the efficiency ratios of North-West Telecom ’s business is accounted for both by the improved macroeconomic situation and the success of the measures taken by the Company to cut down expenses and to increase revenue.

* EBITDA is calculated according to the following formula: “ profit (loss) before taxes” + “interest payable” – “interest receivable” + “ wear and depreciation of fixed assets” + “leasing expenses ”.

The Accounting Balance Sheet and the Profit and Loss Report of OJSC North-West Telecom for first half of 2010 have been published on the corporate site of OJSC NWT in the Economics and Financesection.