MOSCOW, Russia (November 5, 2003)— Golden Telecom, Inc.’s (NASDAQ: “GLDN”) consolidated revenue in the third quarter of 2003 was $90.1 million and consolidated net income was $12.5 million.
Here are some of the highlights for the third quarter 2003 vs. the third quarter 2002:
- Consolidated revenues of $90.1 million – up 95%
- Consolidated operating income of $18.3 million – up 173%
- Consolidated net income of $12.5 million – up 60%
- Consolidated net cash flow from operations of $17.4 million – up 83%
- Consolidated EBITDA1 of $29.4 million - up 110%
- Total business segment revenues of $90.1 million – up 18%
- Total business segment EBITDA1 of $29.7 million – up 15%
(Business segment information is defined as the results of Golden Telecom, Inc. plus the results of 100% of Sovintel and a number of non-consolidated regional joint ventures for all periods referenced.)
Alexander Vinogradov, Chief Executive Officer and President of Golden Telecom, Inc. commented: “Our third quarter numbers confirm strong growth in customer demand for our services, both in Moscow and in regional cities, with exceptional quarter-on-quarter revenue growth of 12%.
On August 20, 2003, we announced the signing of a share exchange agreement to acquire Comincom and Combellga. All necessary regulatory approvals have been received and we expect this transaction to close later this year. We invite all shareholders to join us on November 28, 2003 for the special meeting of shareholders which will decide whether to approve this transaction. This acquisition represents a major step forward for our company, and will help us meet our objective of solidifying and extending our position as the leading voice, data, and Internet service provider in Russia and the Commonwealth of Independent States (CIS).”
Stan Abbeloos, Chief Operating Officer of Golden Telecom, Inc. said: “We saw another quarter of strong revenue growth from our Business and Corporate Services business unit, and the Carrier and Operator Services business unit made a strong recovery from the second quarter. We added 456 new corporate customers in the third quarter, bringing the total to 9,215 as of September 30, 2003. We signed up 22 new multi-tenant business centers.
Regional demand for our services continues to strengthen, prompting us to undertake the construction of a fiber optic link from Moscow to Nizhny Novgorod, a high traffic route for us. We find that on average, our long-distance capacity requirements double every eighteen to twenty-four months. This cable will allow us to reduce our costs, and will enable us to be less dependent on incumbent operators. Constructing this fiber optic link with the mobile operators, Mobile Telesystems and VimpelCom allows us to acquire essentially the same capacity that we would have, if we had built the cable alone, at approximately one-third of the cost that we would have otherwise incurred.”
David Stewart, Chief Financial Officer of Golden Telecom, Inc. noted: “Our balance sheet remains strong and for the first three quarters of 2003 our cash flow from operations exceeded our capex by $20.3 million. We ended the quarter with cash of $54.9 million, virtually unchanged from the end of the previous quarter. During the quarter we paid $15.3 million relating to the acquisition of Sibchallenge and received $12.3 million from stock option exercises. We consolidated one month of the operations of Sibchallenge in Krasnoyarsk this quarter, which added $0.6 million to consolidated revenues after intercompany transactions.”
More Third Quarter 2003 Results (amounts in millions, except per share data):
|
|
3Q03 |
3Q02 |
3Q03
vs 3Q02 |
2Q03 |
3Q03
vs 2Q03 |
|
Consolidated revenues |
$90.1 |
$46.3 |
95% |
$80.7 |
12% |
|
Operating income |
$18.3 |
$6.7 |
173% |
$17.5 |
5% |
|
Income tax |
$5.5 |
$1.7 |
224% |
$4.8 |
15% |
|
Effective income tax rate |
31% |
18% |
|
29% |
|
|
Net income |
$12.5 |
$7.8 |
60% |
$11.9 |
5% |
|
Net income per share (fully diluted) |
$0.43 |
$0.32 |
34% |
$0.42 |
2% |
|
EBITDA1 |
$29.4 |
$14.0 |
110% |
$28.0 |
5% |
|
EBITDA1 margin |
33% |
30% |
|
35% |
|
|
Diluted weighted average shares |
29.1 |
24.7 |
18% |
28.3 |
3% |
|
Capital expenditure, excluding acquisitions |
$15.0 |
$6.5 |
131% |
$16.0 |
-6% |
About Golden Telecom (www.goldentelecom.com)
Golden Telecom, Inc., NASDAQ: “GLDN” is a leading facilities-based provider of integrated telecommunications and Internet services in major population centers throughout Russia and other countries of the CIS. The Company offers voice, data and Internet services to corporations, operators and consumers using its metropolitan overlay networks in major cities including Moscow, Kiev, St. Petersburg, Nizhny Novgorod and Krasnoyarsk and via intercity fiber optic and satellite-based networks – including 150 combined access points in Russia and other countries of the CIS. The Company offers mobile services in Kiev and Odessa.
Statements made in this press release are forward looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such statements include our planned fiber optic link from Moscow to Nizhny Novgorod, and the timing of our planned acquisition of Comincom and Combellga. It is important to note that such statements involve risks and uncertainties, which may cause results to differ materially from those set forth in these statements. Such risks and uncertainties include, but are not limited to, the completion of additional networks which may affect our capital expenditure, our ability to consummate the acquisition of Comincom and Combellga, our ability to efficiently integrate acquired companies, and political, economic and regulatory developments in Russia, Ukraine and Kazakhstan and increasing competition that may limit growth opportunities. Additional information concerning factors that could cause results to differ materially from those in the forward looking statements is contained in the Company’s filings with the U.S. Securities and Exchange Commission including the Company’s quarterly reports on Form 10-Q and periodic reports on Form 8-K filed during 2003, and the Company’s annual report on Form 10-K for the year ended December 31, 2002.
FOR MORE INFORMATION, CONTACT:
Public Relations:
Anna Chin Go Pin
e-mail: achin@gldn.net
tel.: +7-501-797-9300; fax: +7-501-797-9332
Investor Relations:
Tom Adshead
e-mail: tadshead@gldn.net
tel.: +7-501-797-9300; fax: +7-501-797-9331
www.goldentelecom.com
Golden Telecom, Inc.
Condensed, Consolidated Statements of Operations (unaudited)
(Amounts in millions, except per share data)
|
|
|
|
Three Months Ended: |
|
Nine Months Ended: |
|
|
|
|
|
|
9/30/02 |
|
|
|
9/30/03 |
|
|
|
|
9/30/02 |
|
|
|
9/30/03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$ |
|
46.3 |
|
$ |
|
90.1 |
|
|
$ |
|
121.9 |
|
$ |
|
249.2 |
|
|
Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Access and network services (excluding
depreciation and amortization) |
|
|
21.5 |
|
|
|
44.9 |
|
|
|
|
54.5 |
|
|
|
121.6 |
|
|
|
Selling, general and administrative (excluding
depreciation and amortization) |
|
|
10.8 |
|
|
|
15.8 |
|
|
|
|
30.7 |
|
|
|
42.6 |
|
|
|
Depreciation and amortization |
|
|
7.3 |
|
|
|
11.1 |
|
|
|
|
19.6 |
|
|
|
32.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
|
|
6.7 |
|
|
|
18.3 |
|
|
|
|
17.1 |
|
|
|
52.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in earnings (losses) of ventures |
|
3.3 |
|
|
|
— |
|
|
|
|
3.8 |
|
|
|
— |
|
|
|
Foreign currency gain (loss) |
|
( |
0.1 |
) |
|
( |
0.1 |
) |
|
|
( |
0.6 |
) |
|
|
— |
|
|
|
Interest expense, net |
|
( |
0.2 |
) |
|
( |
0.1 |
) |
|
|
( |
0.3 |
) |
|
( |
0.9 |
) |
|
|
Minority interest |
|
( |
0.2 |
) |
|
( |
0.1 |
) |
|
|
( |
0.4 |
) |
|
( |
0.3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other expense |
|
|
2.8 |
|
|
( |
0.3 |
) |
|
|
|
2.5 |
|
|
( |
1.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
9.5 |
|
|
|
18.0 |
|
|
|
|
19.6 |
|
|
|
51.7 |
|
|
Income taxes |
|
|
1.7 |
|
|
|
5.5 |
|
|
|
|
3.8 |
|
|
|
14.5 |
|
|
Income before cumulative effect of a change in accounting principle |
$ |
|
7.8 |
|
$ |
|
12.5 |
|
|
$ |
|
15.8 |
|
$ |
|
37.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cumulative effect of a change in accounting principle |
|
|
— |
|
|
|
— |
|
|
|
|
1.0 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
$ |
|
7.8 |
|
$ |
|
12.5 |
|
|
$ |
|
16.8 |
|
$ |
|
37.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share of common stock: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before cumulative effect of a
change in accounting principle |
$ |
|
0.32 |
|
$ |
|
0.44 |
|
|
$ |
|
0.69 |
|
$ |
|
1.35 |
|
|
Cumulative effect of a change in accounting
principle |
|
|
— |
|
|
|
— |
|
|
|
|
0.04 |
|
|
|
— |
|
|
Basic earnings per share |
$ |
|
0.32 |
|
$ |
|
0.44 |
|
|
$ |
|
0.73 |
|
$ |
|
1.35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares - basic |
|
|
24.3 |
|
|
|
28.2 |
|
|
|
|
23.2 |
|
|
|
27.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share of common stock: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before cumulative effect of a
change in accounting principle |
$ |
|
0.32 |
|
$ |
|
0.43 |
|
|
$ |
|
0.67 |
|
$ |
|
1.32 |
|
|
Cumulative effect of a change in accounting
Principle |
|
|
— |
|
|
|
— |
|
|
|
|
0.04 |
|
|
|
— |
|
|
Diluted earnings per share |
$ |
|
0.32 |
|
$ |
|
0.43 |
|
|
$ |
|
0.71 |
|
$ |
|
1.32 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares - diluted |
|
|
24.7 |
|
|
|
29.1 |
|
|
|
|
23.6 |
|
|
|
28.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Golden Telecom, Inc.
Condensed, Consolidated Balance Sheets
(Amounts in millions)
|
|
|
|
|
|
12/31/02 |
|
|
|
9/30/03 |
|
|
|
|
|
|
|
(audited) |
|
|
|
(unaudited) |
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
|
59.6 |
|
$ |
|
54.9 |
|
|
|
Accounts receivable, net |
|
|
42.2 |
|
|
|
53.3 |
|
|
|
VAT receivable |
|
|
4.0 |
|
|
|
11.5 |
|
|
|
Prepaid expenses and other assets |
|
|
21.6 |
|
|
|
25.4 |
|
|
|
|
Total current assets |
|
|
127.4 |
|
|
|
145.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
166.1 |
|
|
|
188.8 |
|
|
Goodwill, net |
|
|
71.7 |
|
|
|
71.7 |
|
|
Intangible assets, net |
|
|
56.0 |
|
|
|
62.2 |
|
|
Restricted cash and other assets |
|
|
14.6 |
|
|
|
11.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
$ |
|
435.8 |
|
$ |
|
479.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses |
$ |
|
43.9 |
|
$ |
|
49.6 |
|
|
|
VAT payable |
|
|
4.4 |
|
|
|
8.8 |
|
|
|
Debt maturing within one year and current capital lease obligations |
|
|
10.8 |
|
|
|
3.5 |
|
|
|
Other current liabilities |
|
|
11.9 |
|
|
|
15.1 |
|
|
|
|
Total current liabilities |
|
|
71.0 |
|
|
|
77.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt and capital lease obligations |
|
|
29.7 |
|
|
|
4.8 |
|
|
Other liabilities |
|
|
25.4 |
|
|
|
28.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES |
|
|
126.1 |
|
|
|
110.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Minority interest |
|
|
2.2 |
|
|
|
2.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
Common stock |
|
|
0.3 |
|
|
|
0.3 |
|
|
|
Additional paid-in capital |
|
|
446.2 |
|
|
|
468.0 |
|
|
|
Accumulated deficit |
|
( |
139.0 |
) |
|
( |
101.8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL SHAREHOLDERS’ EQUITY |
|
|
307.5 |
|
|
|
366.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
$ |
|
435.8 |
|
$ |
|
479.0 |
|
Golden Telecom, Inc.
Condensed, Consolidated Statements of Cash Flows (unaudited)
(Amounts in millions)
|
|
|
|
Nine Months Ended: |
|
|
|
|
|
|
9/30/02 |
|
|
|
9/30/03 |
|
|
|
|
|
|
|
|
|
|
|
|
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES |
$ |
|
28.8 |
|
|
|
63.1 |
|
|
INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
Purchase of property, equipment and intangible assets |
|
( |
16.6 |
) |
|
( |
42.8 |
) |
|
|
Acquisitions, net of cash acquired |
|
( |
5.4 |
) |
|
( |
15.3 |
) |
|
|
Cash received from escrow account |
|
|
3.0 |
|
|
|
— |
|
|
|
Restricted cash |
|
|
1.9 |
|
|
|
0.4 |
|
|
|
Proceeds from investments available for sale |
|
|
11.0 |
|
|
|
— |
|
|
|
Purchase of investments available for sale |
|
( |
2.0 |
) |
|
|
— |
|
|
|
Loan received from equity investee |
|
|
10.0 |
|
|
|
— |
|
|
|
Other investing |
|
|
4.0 |
|
|
|
2.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET CASH (USED BY) PROVIDED BY INVESTING ACTIVITIES |
|
|
5.9 |
|
|
( |
55.6 |
) |
|
|
|
|
|
|
|
|
|
|
|
FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
Repayments of debt |
|
( |
9.0 |
) |
|
( |
31.1 |
) |
|
|
Net proceeds from exercise of employee stock options |
|
|
3.8 |
|
|
|
20.3 |
|
|
|
Other financing |
|
( |
1.2 |
) |
|
( |
1.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
NET CASH USED BY FINANCING ACTIVITIES |
|
( |
6.4 |
) |
|
( |
12.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
Effects of exchange rate changes on cash and cash equivalents |
|
( |
0.2 |
) |
|
|
— |
|
|
Net (decrease) increase in cash and cash equivalents |
|
|
28.1 |
|
|
( |
4.7 |
) |
|
Cash and cash equivalents at beginning of period |
|
|
37.4 |
|
|
|
59.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
$ |
|
65.5 |
|
$ |
|
54.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Golden Telecom, Inc.
Line-of-Business Statistics (unaudited)
(Amounts in millions)
The following table presents our consolidated segment information for the last five quarters.
|
Consolidated Segment Information |
|
|
|
|
|
|
|
|
Revenue |
9/30/02 |
12/31/02 |
3/31/03 |
6/30/03 |
9/30/03 |
|
Business and Corporate Services |
$20.3 |
$39.3 |
$39.0 |
$43.6 |
$46.7 |
|
Carrier and Operator Services |
18.3 |
28.3 |
29.8 |
26.8 |
32.9 |
|
Consumer Internet Services |
5.2 |
6.2 |
7.1 |
7.2 |
7.2 |
|
Mobile Services |
3.3 |
3.1 |
3.2 |
3.6 |
3.6 |
|
Corporate and Eliminations |
(0.8) |
(0.1) |
(0.7) |
(0.5) |
(0.3) |
|
Total Consolidated Revenue |
$46.3 |
$76.8 |
$78.4 |
$80.7 |
$90.1 |
|
|
|
|
|
|
|
|
Operating Income |
|
|
|
|
|
|
Business and Corporate Services |
$1.6 |
$9.4 |
$10.6 |
$13.5 |
$12.5 |
|
Carrier and Operator Services |
6.9 |
6.7 |
7.2 |
4.9 |
6.9 |
|
Consumer Internet Services |
(1.3) |
(0.9) |
(0.5) |
(0.5) |
(0.8) |
|
Mobile Services |
1.2 |
0.8 |
1.1 |
1.6 |
1.7 |
|
Corporate and Eliminations |
(1.7) |
(1.7) |
(1.2) |
(2.0) |
(2.0) |
|
Total Consolidated Operating Income |
$6.7 |
$14.3 |
$17.2 |
$17.5 |
$18.3 |
|
|
|
|
|
|
|
|
Operating Margin % |
14.5% |
18.6% |
21.9% |
21.7% |
20.3% |
|
Business and Corporate Services |
7.9% |
23.9% |
27.2% |
31.0% |
26.8% |
|
Carrier and Operator Services |
37.7% |
23.7% |
24.2% |
18.3% |
21.0% |
|
Consumer Internet Services |
-25.0% |
-14.5% |
-7.0% |
-6.9% |
-11.1% |
|
Mobile Services |
36.4% |
25.8% |
34.4% |
44.4% |
47.2% |
Reconciliation of consolidated EBITDA1 to consolidated net income (unaudited)
(Amounts in millions)
|
|
|
|
Three Months Ended: |
|
Nine Months Ended: |
|
|
|
|
|
|
9/30/02 |
|
|
|
9/30/03 |
|
|
|
|
9/30/02 |
|
|
|
9/30/03 |
|
|
EBITDA1 |
|
|
14.0 |
|
|
|
29.4 |
|
|
|
|
36.7 |
|
|
|
85.0 |
|
|
|
Depreciation and amortization |
|
|
7.3 |
|
|
|
11.1 |
|
|
|
|
19.6 |
|
|
|
32.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
|
|
6.7 |
|
|
|
18.3 |
|
|
|
|
17.1 |
|
|
|
52.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in earnings (losses) of ventures |
|
3.3 |
|
|
|
— |
|
|
|
|
3.8 |
|
|
|
— |
|
|
|
Foreign currency gain (loss) |
|
( |
0.1 |
) |
|
( |
0.1 |
) |
|
|
( |
0.6 |
) |
|
|
— |
|
|
|
Interest expense, net |
|
( |
0.2 |
) |
|
( |
0.1 |
) |
|
|
( |
0.3 |
) |
|
( |
0.9 |
) |
|
|
Minority interest |
|
( |
0.2 |
) |
|
( |
0.1 |
) |
|
|
( |
0.4 |
) |
|
( |
0.3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other expense |
|
|
2.8 |
|
|
( |
0.3 |
) |
|
|
|
2.5 |
|
|
( |
1.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
9.5 |
|
|
|
18.0 |
|
|
|
|
19.6 |
|
|
|
51.7 |
|
|
Income taxes |
|
|
1.7 |
|
|
|
5.5 |
|
|
|
|
3.8 |
|
|
|
14.5 |
|
|
Income before cumulative effect of a change in accounting principle |
$ |
|
7.8 |
|
$ |
|
12.5 |
|
|
$ |
|
15.8 |
|
$ |
|
37.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cumulative effect of a change in accounting principle |
|
|
— |
|
|
|
— |
|
|
|
|
1.0 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
$ |
|
7.8 |
|
$ |
|
12.5 |
|
|
$ |
|
16.8 |
|
$ |
|
37.2 |
|
Golden Telecom, Inc.
Line-of-Business Statistics (unaudited)
(Amounts in millions)
The following table presents our business segment2 information for the last five quarters.
|
Three months ended: |
9/30/02 |
12/31/02 |
3/31/03 |
6/30/03 |
9/30/03 |
|
|
|
|
|
|
|
|
Business segment revenue: |
|
|
|
|
|
|
Business and Corporate Services |
$39.0 |
$39.3 |
$39.0 |
$43.6 |
$46.7 |
|
Carrier and Operator Services |
29.4 |
28.2 |
29.9 |
26.9 |
32.9 |
|
Consumer Internet Services |
5.2 |
6.2 |
7.1 |
7.2 |
7.2 |
|
Mobile Services |
3.3 |
3.1 |
3.2 |
3.6 |
3.6 |
|
Corporate and eliminations |
(0.7) |
(0.1) |
(0.7) |
(0.5) |
(0.3) |
|
Total business segment revenue |
76.2 |
76.7 |
78.5 |
80.8 |
90.1 |
|
|
|
|
|
|
|
|
Less: equity method ventures revenue |
(34.7) |
(1.1) |
(1.2) |
(1.1) |
(1.2) |
|
Affiliate adjustment |
4.8 |
1.2 |
1.1 |
1.0 |
1.2 |
|
Consolidated revenue |
$46.3 |
$76.8 |
$78.4 |
$80.7 |
$90.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business segment EBITDA1: |
|
|
|
|
|
|
Business and Corporate Services |
$13.3 |
$14.0 |
$15.1 |
$18.0 |
$17.4 |
|
Carrier and Operator Services |
12.7 |
11.0 |
11.6 |
9.1 |
11.5 |
|
Consumer Internet Services |
(0.5) |
(0.1) |
0.4 |
0.4 |
0.2 |
|
Mobile Services |
1.8 |
1.6 |
1.8 |
2.3 |
2.4 |
|
Corporate and eliminations |
(1.5) |
(1.5) |
(1.0) |
(1.8) |
(1.8) |
|
Total business segment EBITDA1 |
25.8 |
25.0 |
27.9 |
28.0 |
29.7 |
|
|
|
|
|
|
|
|
Business segment depreciation and amortization: |
|
|
|
|
|
|
Business and Corporate Services |
4.2 |
4.5 |
4.5 |
4.5 |
4.9 |
|
Carrier and Operator Services |
4.1 |
4.3 |
4.2 |
4.3 |
4.5 |
|
Consumer Internet Services |
0.8 |
0.8 |
0.9 |
0.9 |
1.0 |
|
Mobile Services |
0.6 |
0.8 |
0.7 |
0.7 |
0.7 |
|
Corporate and eliminations |
0.2 |
0.2 |
0.2 |
0.2 |
0.2 |
|
Total business segment depreciation and amortization |
9.9 |
10.6 |
10.5 |
10.6 |
11.3 |
|
|
|
|
|
|
|
|
Business segment operating income |
|
|
|
|
|
|
Business and Corporate Services |
9.1 |
9.5 |
10.6 |
13.5 |
12.5 |
|
Carrier and Operator Services |
8.6 |
6.7 |
7.4 |
4.8 |
7.0 |
|
Consumer Internet Services |
(1.3) |
(0.9) |
(0.5) |
(0.5) |
(0.8) |
|
Mobile Services |
1.2 |
0.8 |
1.1 |
1.6 |
1.7 |
|
Corporate and eliminations |
(1.7) |
(1.7) |
(1.2) |
(2.0) |
(2.0) |
|
Total business segment operating income |
15.9 |
14.4 |
17.4 |
17.4 |
18.4 |
|
|
|
|
|
|
|
|
Less: equity method ventures operating income (loss) |
(9.2) |
(0.1) |
(0.2) |
0.1 |
(0.1) |
|
|
|
|
|
|
|
|
Consolidated operating income |
6.7 |
14.3 |
17.2 |
17.5 |
18.3 |
|
|
|
|
|
|
|
|
Equity in earnings (losses) of ventures |
3.3 |
0.6 |
0.1 |
(0.1) |
- |
|
Foreign currency gain (loss) |
(0.1) |
(0.6) |
0.2 |
- |
(0.1) |
|
Interest income (expense), net |
(0.2) |
(0.4) |
(0.4) |
(0.6) |
(0.1) |
|
Minority interest |
(0.2) |
(0.1) |
(0.1) |
(0.1) |
(0.1) |
|
Income taxes |
(1.7) |
(0.8) |
(4.2) |
(4.8) |
(5.5) |
|
|
|
|
|
|
|
|
NET INCOME |
$7.8 |
$13.0 |
$12.8 |
$11.9 |
$12.5 |
The following table presents selected operating data3 related to our consolidated and non-consolidated ventures at and for the periods shown:
|
|
|
Three Months Ended: |
|
|
|
|
|
3/31/03 |
|
|
|
6/30/03 |
|
|
|
9/30/03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Points of presence |
|
|
149 |
|
|
|
149 |
|
|
|
149 |
|
|
Total contracts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business and Corporate Services |
|
|
34,928 |
|
|
|
38,111 |
|
|
|
68,5495 |
|
|
|
Carrier and Operator Services |
|
|
535 |
|
|
|
588 |
|
|
|
689 |
|
|
Dial-up Internet access subscribers4 |
|
|
278,823 |
|
|
|
280,243 |
|
|
|
291,167 |
|
|
Total active cellular subscribers |
|
|
35,308 |
|
|
|
36,314 |
|
|
|
36,861 |
|
|
Total employees – consolidated entities |
|
|
1,753 |
|
|
|
1,812 |
|
|
|
2,117 |
|
|
Total employees – non-consolidated entities |
|
|
116 |
|
|
|
127 |
|
|
|
132 |
|
Notes to data for Golden Telecom:
1. EBITDA is defined as operating income plus depreciation and amortization. This measure is not defined by generally accepted accounting principles (GAAP) and is a measure of a company performance commonly used in the telecommunications industry, but should not be construed as an alternative to operating income/(loss) determined in accordance with GAAP as an indicator of operating performance or as an alternative to cash from operating activities determined in accordance with GAAP as a measure of liquidity. A reconciliation of EBITDA to net income is included in the press release.
2. Business segment information is defined as the results of Golden Telecom, Inc. plus the results of 100% of Sovintel and a number of non-consolidated regional joint ventures for all periods referenced.
3. MCT Corp. is not included in the operating data shown.
4. Dial-up Internet subscribers is the number of users (or logins) who have logged on to the system during the month in question, regardless of whether they are enabled or disabled at month end. It specifically excludes “on-trial” users, free users and internal users.
5. The total number of contracts in the third quarter includes Sibchallenge for the first time. Sibchallenge has approximately 30,000 contracts, which are predominantly residential.
|
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