In 2002 MGTS' sales revenue amounted to RUR 10.1 billion, which is up 27.3% on 2001.  The preponderance of revenues over costs made it possible to earn net profit of RUR 1.13 billion, which was considerably higher than the level achieved during the previous year (RUR 366 million).

On the other hand, the regulated services provided by MGTS in 2002 were loss-making, as a result of which the management's primary challenge for 2003 will be breaking even on these types of services.

The company's 2002 revenues make it possible to allocate 38% of funds received in the form of recovered depreciation charges to capital investments, which was equal to RUR 2.4 billion.  MGTS also managed to keep up the pace of fixed asset renewal.  Thus, in 2002 the total value of fixed assets commissioned stood at over RUR 3.1 billion, which is 57.6% higher than in 2001.  Net growth in the company's installed capacity network capacity was 81,900 lines in 2002.  In 2002 MGTS also started providing data transmission resources using its broad-band network.

The high level of revenue earnings in 2002 has enabled MGTS to solve its main task in stage two of the overall restructuring of its urban telephone network - replacing old and obsolete analog switching facilities with digital equipment.  Preparatory work will be launched in 2003, as a result of which around 200,000 lines are to be replaced per year.