| During the first six months of 2002 domestic long-distance traffic volume rose by 14%, international outgoing traffic by 11% compared to the same period a year ago;
· Revenues were up 12.8% on the year-earlier period, reaching Rub 12,520.8 mn;
· Operating profits surged by 67% year-on-year and stood at Rub 1.9 bn
· EBITDA reached Rub 5.4 bn, up 29% year-on-year. The EBITDA margin rose to 43% for the six months of 2002, com pared to 38% a year ago.
· Net profit stood at Rub 762 mn, which was 2% lower than for the first six months of 2001, primarily due to foreign exchange losses and deferred taxation.
Key financial indicators for 1H 2002
CONSOLIDATED PROFIT & LOSS STATEMENT
|
|
Not adjusted for inflation |
|
|
Consumer Price Index |
1.2205 |
1.0330 |
% change |
|
Rub mn |
6 months 2001 |
6 months 2002 |
|
|
Revenue |
11,098 |
12,521 |
12.8% |
|
Operating expenses |
(9,952) |
(10,609) |
6.6% |
|
Depreciation |
(3,074) |
(3,525) |
14.7% |
|
EBITDA |
4,219 |
5,437 |
28.8% |
|
Operating profit |
1,146 |
1,912 |
66.6% |
|
Non-operating income (loss), total |
1,302 |
(432) |
n/a |
|
Foreign exchange gain/(loss), net |
354 |
(703) |
n/a |
|
Income before tax and minority interest |
2,448 |
1,480 |
-39.6% |
|
Current tax charge |
(1 138) |
(735) |
-35.4% |
|
Deferred tax benefit / (charge) |
719 |
268 |
-62.7% |
|
Net profit |
1,580 |
762 |
-51.8% |
|
EBITDA Margin, % |
38% |
43% |
|
|
EBIT Margin, % |
10% |
15% |
|
|
Net Margin, % |
14% |
6% |
|
All absolute numbers, as well as comparatives in the press release are not adjusted for inflation. Rostelecom management believes that such presentation properly reflects the dynamics of the Company's financial results For your convenience all inflation indices used to de-inflate the numbers of the financial statements are given in every table of the press release in strict correspondence with specific periods and dates.
CONSOLIDATED BALANCE SHEETS
|
Mn/Rub |
Not adjusted for inflation |
|
|
CPI |
1,0911 |
1,0000 |
|
|
|
|
31.12.2001 |
30.06.2002 |
% change |
|
ASSETS |
|
Non-current assets |
56,106 |
58,863 |
4.9% |
|
|
Fixed assets |
54,443 |
56,882 |
4.5% |
|
Current assets |
12,732 |
15,534 |
22.0% |
|
|
Cash and cash equivalents |
1,930 |
3,623 |
87.7% |
|
Total assets |
68,838 |
74,397 |
8.1% |
|
SHAREHOLDER EQUITY AND LIABILITIES |
|
Shareholder equity |
42,349 |
46,605 |
10.1% |
|
Minority interest |
1,676 |
2,131 |
27.1% |
|
Current liabilities |
13,765 |
13,957 |
1.4% |
|
|
Current portion of interest-bearing notes |
5,828 |
5,968 |
2.4% |
|
Non-current liabilities |
11,048 |
11,704 |
5.9% |
|
|
Interest bearing notes – net of current portion |
948 |
795 |
-16.2% |
|
|
Deferred taxation |
9,771 |
10,385 |
6.3% |
|
Total liabilities |
24,813 |
25,661 |
3.4% |
|
Total shareholders’ equity, minority interest and liabilities
|
68,838 |
74,397 |
8.1% |
|
Net Debt |
2,033 |
488 |
-76.0% |
Revenues
Domestic Long Distance (DLD) Services
During the first six months of 2002 DLD traffic increased by 14% year-on-year. Traffic from subscribers increased by 1%, reaching 585.2 mn min, while traffic from operators was up 18%. Volume of DLD traffic from operators was 2,746.8 mn min.
Revenue from DLD services grew by 40% and amounted to Rub 4,182 mn. Revenues from subscribers surged by 14%, reaching RUB 1,581 mn. Revenues from operators increased by 64% to RUB 2,601 mn, while revenues from regional operators were 78% due to a 15% traffic increase and an average 56% rise in the line settlement rate.
International Long-Distance (ILD) Services provided to Russian subscribers and operators
Outgoing ILD traffic volumes rose by 11% over a year ago. Subscribers traffic decreaed by 17% to 171 mn min along with revenues that also dropped by 17%, totaling Rub 1,649 mn. Outgoing ILD traffic from operators surged by 28% to 412 mn min, while revenues from operators increased by 27%, reaching Rub 2,302 mn.
Revenues from international operators
For the first time in several years Rostelecom saw an increase in incoming international traffic - traffic rose by 3.5% over the year-earlier period to 426 mn min.
The decline in revenues from international operators amounted to 4% due to an reduction in international settlement rates. At the same time charges by international operators fell by 8% compared to the first six months of 2001.
TRAFFIC AND REVENUE DYNAMICS
|
|
|
Not adjusted to inflation |
|
|
CPI |
1.2205 |
1.0330 |
|
|
|
|
1H 2001 |
1H 2002 |
% change |
|
DLD traffic |
|
|
Traffic, mn min |
2,915 |
3,332 |
14.3% |
|
|
Revenue, mn Rub |
2,982 |
4,182 |
40.2% |
|
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