CenterTelecom (RTS: ESMO, ESMOP; US OTC: CRMUY), one of Russia's largest fixed-line telecommunications operators today made public 2003 unaudited financial results according to Russian Accounting Standards.

Key financials:

• Revenues grew 27.5 per cent to RUR20,890 million ($720 million).
• Profit up 23.1 per cent reaching RUR5,241 million ($ 181 million).
• Net profit came to RUR1,502 million ($51 million).
• EBITDA raised 45.4% to RUR4,852.5 million ($ 167 million)
• New installed switching capacity – 535 thousand subscriber lines

All economic targets set by the business plan approved for the Company were achieved.

Revenues totaled RUR20,890 million or 127.5 per cent to 2002, while production costs in 2003 were RUR15,648.5 million (128.9 percent to 2002).

Revenues from provision of telecommunications services in 2003 amounted to RUR20,565.3 million (129.8 per cent).

Profit came to RUR5,241.5 million (123.1 per cent).

Pre-tax profit reached RUR2,303.9 million (143.6 per cent).

Net (undistributed) profit totaled RUR1,502.6 million (138.6 per cent).

The Company stays on the track and continues sustainable growth and further costs reduction.

Meeting one of its key objectives for 2003 the Company commissioned for service some 3,328.6 km of fiber-optic transmission links, with the total length of inside tariff-band transmission links of the MultiRegional Company (MRC) reaching 29,649 km as of late 2003, of which fiber-optic links account for 10,748.8 km , and switching capacity of 6,437 thousand subscriber lines. In 2003 CenterTelecom consolidated its position in "new services" market. Roll out of these services is treated as a top priority and the most lucrative market, and the Company constantly upgrades its public networks and expands its data networks enabling improvement of quality of service and widening the range of services.

These accomplishments give a higher profile and bring more visibility to the Company among its potential customers. Better Internet access, IP-telephony, growing opportunities for VPN provisioning, offerings of high-quality digital TV and radio broadcasting prevented churn of customers choosing alternative operators, and as consequence, resulted in an increase of 48 per cent in revenues generated by provision of new advanced services.

Revenues from telecommunications services rose 29.8 per over 2002, with growth of sales of POTS accounting for 52.6 per cent of the revenue increase, and tariff hike and other revenue growth factors accounting for 47.4 per cent of the increase.

www.centertelecom.ru

CenterTelecom background

Joint-Stock Central Telecommunication Company (CenterTelecom) is a leading telecommunications company rendering services in Russia's most densely populated Central Federal District, with population accounting for 20 per cent of Russia's total.

CenterTelecom offers all types of telecom services, including telephone service, Internet access, IP-telephony, data, radio and cable TV, wireline and VHF sound broadcasting. The Company expands its fiber-optic and SDH networks, deploys advanced wireless access systems.

The Company's shares are traded on RTS (ESMO, ESMOP), MICEX (CTEL, CTELP); the Company also established a Level I ADR program for underlying ordinary shares (ticker: CRMUY).

CenterTelecom is managed by a strong team of experienced managers with a proved track record in the telecommunications industry. Over the past 3 years the Company's management achieved sales growth of 116.9 per cent and improved profit margins by 5.8 points (over 2000).

CenterTelecom (RTS: ESMO, ESMOP; US OTC: CRMUY)
Key financials

Copyright © 2004 Joint-Stock Central Telecommunication Company