OJSC STC, the core company for the Southern regional merger, has released preliminary data on its 2001 performance.  

The Company generated an aggregate revenue of Rub 8.2 bn, which is up 28.1% over the previous reporting period, while revenue from telecom services jumped Rub 2 bn and stood at Rub 7.9 bn (up 33.9%).   

New services, including Internet and other services, developed alongside of traditional services.  The volume of new services rose 0.37% and generated Rub 217.8 bn compared to Rub 141.7 mn in 2000.  

Pre-tax profits in 2001 stood at Rub 1.5 bn with a profitability rate of 24.2%.  The average profitability rate for telecom companies ranges from 7.7% for OJSC Svyazinform of Astrakhan region to 33.1% for OJSC Elektrosvyaz, Stravropol krai, and 36.1% for OJSC Sevosetinelektrosvyaz.  In addition, the customer base of STC witnessed extensive development.  

The company's main lines grew by 152,000 in 2001 while long-distance telephone channels rose by 1,028,150 ch./km.  Average telephone lines increased by 124,000 and stood at 3,042, 400 units. 

The growth in STC's telecom facilities will enable the Company to increase the volume of its 2002 services.  

Under the merger schedule, non-core companies are to merge with STC by the end of 2002.  The merger process will include: OJSC Elektrosvyaz, Rostov region, OJSC Elektrosvyaz Stavropol krai, OJSC Elektrosvyaz, Republic of Agydeia, OJSC Elektrosvyaz Republic of Kalmykia, OJSC Volgogradelektrosvyaz, OJSC Sevosetinelektrosvyaz, OJSC Svyazinform, Astrakhan region, OJSC Karachaev-Cherkesselekrosvyaz and OJSC Kabbaltelecom.