North-West Telecom JSC has summed up the results of its operation for the year 2006 according to the International Financial Reporting Standards (IFRS). The financial reporting was audited by Ernst and Young.

According to IFRS, in 2006 revenue from core activity grew by 0.5% and amounted to RUR 20,649 million. Expenses amounted to RUR 17,765.7 million, which is 1.1% less than in 2005.

The bulk (45.1%) of the revenue was made by income from local communication, which amounted to RUR 9,315.7 million in 2006.

In connection with a number of changes in the industry that took place in 2006 (long-distance market liberalization, changes in traffic routing and in settlements with operators, etc.) and due to the successful work of North-West Telecom in the "carrier to carrier" segment, revenue from services provided to communication operators have shown the highest growth rate: as compared to 2005, they grew almost 2.5 times to RUR 4,701.9 million.

Revenue from new services (dial-up and broadband Internet access, intellectual network services, etc.) also showed impressive dynamics, having increased by 50% and making RUR 1,537.2 million. The percentage of new services in total revenue grew to 7.4% (against 5.3% in 2005).

EBITDA increased on 18% to RUR 6 635.8 million in 2006. EBITDA margin grew by 4.9 p.p., reaching 32.1%.

North-West Telecom's net income according to IFRS for 2006 amounted to RUR 1,270.6 million, having decreased by 10% as compared to 2005.  

Like in the previous year, the auditors' report on the financial reporting of North-West Telecom JSC according to IFRS did not contain any reservations.

The consolidated financial reports of North-West Telecom JSC according to the IFRS for 2006 and notes to them are published in the Economics and Finance section of NWT's corporate web site.

You may ask questions and get comments on published financial reports on 20th July from 3.00 to 5.00 p.m. Moscow time at the corporate web site of North-West Telecom JSC (www.nwtelecom.ru) in the framework of the Internet conference "Results of North-West Telecom's Activities for 2006 according to IFRS".  

You may send your questions beforehand to the following address: e.tomilina@nwtelecom.ru