Based on the company's results for the first six months of 2002 OJSC North Western Telecom generated revenues amounting to Rub 2.3 bn.  The cost of sales for goods (work and services) amounted to Rub 1.6 bn.  Net profit was Rub 3.6 bn.  Revenues rose by 24% and net profit by 65% year on year. In addition, the pace of growth in revenues and net profit considerably outstripped the increase in cost, which stood at 22%.  

Debts receivable for telecom services rendered stood at Rub 9.7 bn.  The company's primary debtor still remains the federal budget, which is supposed to compensate OJSC North Western Telecom for telecom services provided to various categories of special discount customers, as well as the so-called "power agencies".  The company is prohibited from disconnecting these special discount customers under a decree issued by the President of the Russian Federation even in the event of rampant payment delinquency.  

In spite of great efforts by OJSC North Western Telecom, the mountain of debts payable by the federal budget continues to grow.  While in 1999 the federal budget owed OJSC North Western Telecom Rub 145 mn, in 2001 payables had risen to Rub 343 mn, and snowballed in excess of Rub 600 mn based on the results of H1 2002.   

Within the near future OJSC North Western Telecom intends to post its balance sheet (forms 1 and 2) on its corporate website.  For more information see www.nw.telecom.ru