Moscow, Russia – June 8, 2005 – Sistema (LSE: SSA), the largest private sector consumer services company in Russia and the CIS, today announced its consolidated US GAAP financial results for the twelve months ended December 31, 2004.
HIGHLIGHTS
- Consolidated revenues grew 52% to US$ 5.71 billion
- OIBDA increased 52% to US$ 2.46 billion
- Net income from continuing operations before effect of cumulative change in accounting principle increased by 94% to US$ 446.7 million
- Net income grew 6% to US$ 411 million
- Total consolidated assets increased 29% to US$ 8.78 billion
Vladimir Evtushenkov, President and Chief Executive Officer of Sistema, commented: “2004 was a positive year for Sistema, as all of our business segments reported healthy sales growth and profitability. Despite increasing competition, our telecommunications assets were able to maintain their leading position in their existing markets, as well as to extend their footprints by entering new markets. We have consolidated our ownership in a number of subsidiaries, and the performance across the group has reinforced the breadth of our consumer services offering across Russia and the neighboring CIS states.”
“We have also made great strides within the organization, in terms of the operational integration of new businesses under our strong brands, as well as the development and application of group-wide corporate governance procedures. The successful high growth profile of our businesses, and the markets in which we operate, enabled us to refinance our debt facilities last year, and to complete an Initial Public Offering after the end of the year. The proceeds of the IPO provide us with enhanced flexibility moving forward, both in terms of investing in our existing businesses, as well as the possibility to acquire strategic new assets, in order to further build on our market-leading positions.”
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Sistema is the largest private sector consumer services company in Russia and the CIS, with over 45 million customers. Sistema develops and manages market-leading businesses in selected service-based industries, including telecommunications, technology, insurance, banking, real estate, retail and media. Founded in 1993, the company reported revenues of US$ 5.7 billion for the full year 2004, and total assets of US$ 8.8 billion as at December 31, 2004. Sistema’s shares are listed under the symbol “SSA” on the London Stock Exchange, under the symbol “AFKS” on the Russian Trading System (RTS), and under the symbol “CUCT” on the Moscow Stock Exchange (MSE).
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