North West Telecom has released the results of its 1H 2003 financial performance. 

Based on the results of its financial activity, North West Telecom generated Rub 5.6 billion of revenue during the first six months of 2003, which is up 20.3% compared to the year-earlier period.  Revenue from sales of telecom services stood at Rub 5.5 billion.

Revenue from long-distance and international telecom traffic reached a total of Rub 2.3 billion, which represents a 12% increase compared with the first six months of 2002.  Their overall contribution to the total value of telecom services was 42.1%.

Revenue from provision of local telecom services rose by 27.4% compared with the same period last year and reached Rub 2.7 billion, accounting for 49.6% of the overall volume of telecom services rendered.

The amount of revenue derived from providing new types of telecom service rose from 2.4% (compared with the first six months of 2002), to 3.3% of the overall amount for a total of Rub 183.2 million.

The cost of saleable services rendered totaled Rub 4.168 billion, including Rub 4.100 for telecom services.

Net profit of North Wet Telecom reached a total of Rub 644.7 million during the first six months of 2003, which was 146% more than during the same period last year.

Growth in net profit resulted from:

• Growth in sales profit by Rub 237.2 million (19% increase against 1H 2002);

• Reduction in losses for other revenues and expenses by Rub 141 million, which was mainly due to the decrease in expenses associated with foreign exchange differences and the decrease in expenses involving bad debt provisions.

The profit margin on sales revenue for 1H 2003 remained virtually unchanged compared with the year-earlier period and stood at 26%.

Pre-tax and net profit margins during the first six months of 2003 rose 6.7% and 5.8% compared with the year-earlier period, reaching 20.5% and 11.4%, respectively.

The total number of lines in service was 3,653,308 at North West Telecom as of July 1, 2003.