North-West Telecom has summed up the results its operation for the year 2004 according to the International Financial The financial accounts and reports of OJSC North-West Telecom were audited by the Ernst and Young Vneshaudit auditing company.

According to IFRS, the income earned in the course of the principal activity for 2004 has grown by 24.4 % and amounted to RUR 15,407 million . The reported income includes the income of the companies that were affiliated on 1st October 2004, Lensvyaz and Svyaz of the Republic of Komi, to the amount of RUR 970 million . The organic growth of income of OJSC North-West Telecom in 2004 was ensured by 39% by the increased rates (by 20% on the average) and by 61% by the development of communication facilities and the growth of outgoing traffic (by 8% on the average).

As before, the main share (36%) in the revenue structure is the income from the provision of local communication, the growth of which was 41% in 2004. The highest growth rate ( 60%) was shown by the income from value added services ( Internet access, including broadband access and ISDN, intelligent network services , etc.), which ensured 4.4% of the aggregate revenue (against 3.5% in 2003).  

The EBITDA increased by 40% for 2004 and amounted to RUR 3,735 million . As a result of the outrunning growth of proceeds as compared to the costs, EBITDA profitability grew by 2.7 pct and amounted to 24.6%.

Net income according to the IAS grew by 40% in 2004 to RUR 705.318 million . The difference in the amount of net profit according to the Russian Accounting Standards (RUR 1,327 million ) and the IAS is mainly accounted for by the differing approaches to the assessment of fixed assets ( differen t depreciation rates) and adjustments of expenditure items (pension liabilities, interest expenses, etc.)

"As we promised the reports according to the international standards have been prepared within the shortest time possible, before the annual general meeting of the shareholders North-West Telecom plans to continue to adhere to such practices, aspiring to meet the international standards of corporate governance ."

The consolidated financial reports of OJSC North-West Telecom according to the IAS for 2004 and notes to them are published on OJSC NWT's corporate site in the section «Economic & finance».