Volga Telecom generated gross revenue of Rub 6.4 billion in 1H 2003, which is up 25% on the same period last year.  Revenue from telecom services rose by 25.6% up to Rub 6.2 billion.  The company’s operating expenses stood at Rub 4.7 billion (up 131.5%). 

Sales profit reached Rub 1.6 billion (up 109.3%), while pre-tax profit amounted to Rub 1.2 billion (up 128%), while net profit rose Rub 792 million.  EBITDA increased by 35.9% and reached Rub 1.8 billion.   

- profit margin on sales revenue for the first six months of 2003 – 25.7%;

- pre-tax profit margin – 23.7%;

- net profit margin – 12.5%

During the first six months of 2002 the company allocated Rub 1.7 billion (160.8% growth rate).  Increase in main telephone lines reached 108,200 units (122/1% more than during the first half of 2002).  Outgoing paid exchange on long-distance and international traffic posted an increase of 121.5% for a total of 932,881,000 minutes. 

The average number of staff employed at the company during 1H 2003 dropped to 49,484 (95.1% growth rate compared to 1H 2002).  Average number of lines was up by 6.1% and reached 3,944,251.