Nizhny Novgorod, ?pril 2005: The cast total of OJSC “VolgaTelecom” financial and economic activities for year 2004 confirmed the fulfillment of all plan figures. OJSC “VolgaTelecom” proceeds increased by 26,8% and amounted to 18 605 million rubles. Incomes from communication services increased, vs. the figures of year 2003, by 27,6% to 18 171 million rubles. The major portion in the structure of incomes from communication services falls on incomes from local communication services (43,1%), DLD & ILD (37,6%). Incomes from value-added services amounted to 5,2% of the total sum of incomes from communication services.
The growth rate of expenses for ordinary activities for 2004 was 126,5% and the total amount of expenses - 13 264 million rubles. The prime cost per one ruble of returns is 71 %.
Sales profit increased by 27,5% to 5 341 million rubles and the balance-sheet profit by 4,9% to 2 990 million rubles. EBITDA increased by 16% and amounted to 5 507,5 million rubles. In 2004 EBITDA margin was 29,9%. By the results of year 2004 OJSC “VolgaTelecom” net profit amounted to 2 056 million rubles (the growth rate is 102,7%). The cost-efficiency as regards the sales profit amounted to 40,3%, the cost-efficiency as regards the balance-sheet profit - 22,5% and the net profit cost-efficiency – 15,5%.
During the report period the number of lines per an employee grew by 13 % and reached 88 lines. Proceeds per an employee increased by 33% and amounted to 379 thousand rubles. The expenses per an employee increased by 26,5% and amounted to 270 thousand rubles. The proceeds per line - 4 314 rubles (the growth rate is 117,7%).
In 2004 OJSC “VolgaTelecom” invested 6 964,5 million rubles (the growth rate is 154,3%) in communication facilities development. Traditionally, considerable part of capital investments was allocated for the development of local telephone communication (63,7%). The amount of finance invested into DLD & ILD services development was 10,9% and into value-added services development – 7,2%. As a result, 539,6 thousand numbers were commissioned (the growth rate is 124,5% vs. 2003) during the year to the first instant. The increment of basic telephone sets was 258,3 thousand numbers. Local telephone network installed capacity is 4,7 million numbers.
OJSC “VolgaTelecom” is the largest telecommunication company of the Volga region providing telephony, cellular communication, Internet and data transfer, TV and radio broadcasting services. The Company was established in 2002, when within the terms of communication industry restructuring, 11 telecommunication operators of the Volga Federal district were consolidated into OJSC “VolgaTelecom”. OJSC “VolgaTelecom” charter capital is 1 639 764 970 rubles. It is divided into 245 969 590 ordinary stock and 81 983 404 preferred stock; the face value of each share is 5 rubles. The principal shareholder - OJSC “Svyazinvest” possesses 38% of the Company’s charter capital. The Company’s shares are traded at RTS and MICEX. Since 1997 I-level American Depositary Receipts program is carried out, the specified receipts being traded at Frankfurt, Berlin stock exchanges and at the USA OTC market.