MOSCOW, 30 June – CenterTelecom(RTS: ESMO, ESMOP; MICEX: CTLK, CTLK?) held its AGM in Moscow today.
At the meeting, shareholders approved the 2004 Annual Report and Accounts.
Summing up the results, Ruben Amaryan, Director General, said: “2004 was not easy for fixed line operators, including CenterTelecom. The expansion of mobile operators and the growth of IP telephony made for a tough market for us.
Despite these conditions, the company made steady progress and met the financial targets set for the year by the Board. CenterTelecom does not own mobile assets and operates in Regions with a high level of competition in all market segments. So we have had to work on the modernization and development of our network, including automated exchanges, installation of up-to-date optical fibre lines, private networks, and improved subscriber access.
Within the year changes took place in the regulatory system, and no tariff review took place. All this had a negative impact on our financial results. Other factors included the impact of the continuing interregional restructuring.
CenterTelecom is the major supplier of up-to-date telecommunication services in the Central Federal Region. We work to build our future, and I am sure that shareholders understand the impact of this forward-looking strategy on the company’s profitability in the short term”.
The AGM approved the annual dividend for 2004.
The dividend declared and approved is:
- RUR 0,0756115 per one preferred share payable August 29, 2005
- RUR 0,0630084 per one common share payable December 31, 2005.
The total dividend amounts to RUR 139.2 mln, or 35% of net profit for 2004, against RUR 347.3 mln for 2003 (23%) – an increased of 12%.
The AGM elected the Board of Directors listed below:
1. Rouben Amaryan, CenterTelecom, General Director
2. Boris Antonyuk, Ministry of Information Technologies and Telecommunications, Deputy Minister
3. Andrei Beskorovainy, Federal Agency of the Telecommunications, Head
4. Alexander Gribov, Russian Fund of Federal Property, Deputy Head of Administration
5. Valery Degtyarev, ZAO “Professionalnye Telekommunikatsii”, General Director
6. Alexander Kiselev- Ministry of Information Technologies and Telecommunications, Aide of the Minister
7. Sergey Kuznetsov, Svyazinvest, 1st Deputy General Director
8. Ivan Mazalov, Prosperity Capital Management, Director
9. Dmitry Milovantsev,Ministry of Information Technologies and Telecommunications, Deputy Minister
10. Grigory Finger, Moscow Representative Office of NCH Advisors., Inc., Executive Director
11. Valery Yashin, Svyazinvest, General Director
The Meeting also elected the Audit Committee:
1. Konstantin Belyaev, Svyazinvest, Deputy General Director
2. Svetlana Bocharova, Svyazinvest, Head of Accounting Department
3. Valentina Veremyanina, Svyazinvest, Head of Legal Department
4. Yaroslav Murashkin, Svyazinvest, Chief Specialist of Economic Planning and Budgeting Department
5. Oksana Petrova, Svyazinvest, Deputy Head of Corporate Governance Department
6. Ilya Ponomarev, Svyazinvest, Head of Economic Planning and Budgeting Department
7. Svetlana Sinadskaya, Svyazinvest, Head of Economic and Tariff Policy Department
Ernst & Young were appointed auditors for 2005.
A revised Charter was also approved, together with amended Regulations concerning the Board of Directors, the AGM, the Audit Committee and remuneration paid to Directors. It was also agreed that CenterTelecom withdraw from a number of non-commercial organizations.
At the first meeting of the new Board of Directors, Valery Yashin was elected Chairman, and Grigory Finger – Deputy Chairman.
Besides, by decisions of new Board of Directors have been formed:
Committee of Board of Directors on staff and compensations:
Grigory Finger - Chairman of Committee
Valery Djagterev - a member of Committee
Sergey Kuznetsov - a member of Committee
Audit Committee of Board of directors:
Alexander Gribov - Chairman of Committee
Valery Djagterev - a member of Committee
Ivan Mazalov - a member of Committee
Grigory Finger - a member of Committee
For additional information, please contact:
Director of Securities and Corporate Management Department
Head of Investors Relations Department
Director of Information Policy Department