Based on the results of 1Q 2004 the revenue of Far East Telecom rose 37% against 1Q 2003 and stood at Rub 2,030 mln (against Rub 1,482 mln in 1Q 2003).  

Revenues from sale of telecom services rose by 37.1% to Rub 1,999.7 mln (against Rub 1,457 mln in 1Q 2003).  Capital investments totaled Rub 151.1 mln and fixed assets commissioned amounted to Rub 108.5 mln. 

During 1Q 2004 Far East Telecom entered switching facilities with a total of 11,700 lines into service.  The digitalization rate of the company rose 0.8% and exceeded 49% as of the end of 1Q 2003, including 54.9% for urban facilities.  The rise in trunk telephone lines was 17,500 (up 47% on 1Q 2003).  As of April 1, 2004 1,147,000 trunk lines were in service, including 990,500 urban and 157,200 rural lines. 

The average number of staff remained unchanged compared to 1Q 2003 and stood at 18,250.  Line index number pre employee stood rose by 5.8% to 64 (compared to 60 in 1Q 2003).   

LD and ILD traffic for 1Q 2004 stood at 158,000,000 minutes (up 22% on 1Q 2003) including LD totaling 148,700 min. (up22.1% on1Q2003) andILDtotaling9.3 mlnmin. (up21.3% on1Q2003). 

Cost stood at Rub 1,757,000, up 42.9% on 1Q 2003 (Rub 1,229,100).  Payroll amounted to 35% of the cost side (down from 37.3% in 2003).  Payments to Rostelecom were up 17% (compared to 14.3% in 1Q 2003).  Taxes and social deductions were 12% of cost (against 12.9% in 1Q 2003).  Depreciation of fixed assets was 9% (against 6% in 1Q 2003).  Material expenses made up 8% (against 10.5% in 1Q 2003), whereas operating expenses accounted for 19% (against 19% in 1Q 2003). 

EBITDA was up 30.5% and reached Rub 295,800, while operating profit was Rub 273,000,000 (+8%).  EBITDA ratio was 14.6%.  Pre-tax profit was Rub 97.7 mln and net profit was Rub 37.9 mln. 

Expenses outpaced sales in 1Q 2004, which caused a rise in depreciation and a change in the mutual settlement system with Rostelecom.