Krasnodar, May 27, 2005: Southern Telecommunications Company (“UTK”) (RTS: KUBN, KUBNP; MICEX: UTEL, UTELP; ADR OTC: STJSY, KUE FRA), the principal fixed-line telecommunications provider for Russia’s Southern Federal District, reports its 2004 and 1Q2005 results of work with accounts receivable.
In 2004 absolute value of accounts receivable of "UTK" PJSC increased by RUR 134.9 mln (from RUR 1,744.6 mln to RUR 1,879.5 mln) including receivables for provided telecom services – by RUR 325.4 mln (from RUR 1,116.8 mln to RUR 1,442.2 mln). Level of accounts receivable with regard to 2004 annual gross revenue decreased by 1.9 % (from 13.0% to 11.1 %), share of receivables for provided telecom services was up 0.4 % (from 8.4% to 8.8 %).
Analysis of the dynamics of accounts receivable for provided telecom services by client segment showed a stable decrease in receivables with respect to annual tariff revenues from the corresponding client segments:
- budget-funded organizations - by 4.9% (from 13.0% to 8.1 %);
- individuals - by 0.9 % (from 6.2% to 5.3 %);
- business sector – by 1.1 % (from 5.6% to 4.5 %).
According to 1Q2005 results UTK’s accounts receivable decreased year-on-year by RUR 366.2 mln (from RUR 2,303.9 mln to RUR 1,937.7 mln).
Level of accounts receivable for provided telecom services with regard to 1Q2005 tariff income decreased in all client segments except for receivables relating to non-compensation of payments for telecom services provided at reduced tariff rates to some categories of population:
- from budget-funded organizations - by 42.4 %;
- from individuals - by 9.7 %;
- from business sector - by 4.2 %.
In 1Q2005 non-compensated expenses incurred by the Company reduced by RUR 7 mln (from RUR 627 mln to RUR 620 mln).
Detailed report on the Companys accounts receivable can be accessed here: 2004 results.