On 30 April 2010, OJSC North-West Telecom reported its financial and economic results for quarter 1, 2010 based on the Russian Accounting Standards (RAS).

The revenues in quarter 1, 2010 were up by 9% on the same period last year to reach RUB 6,965 million including RUB 6,408 million from the sales of communication services.

The highest growth was recorded for the revenues from new communication services (the Internet and data transfer) and local communications that grew by 19.5% and 7.7% respectively compared to the same period of 2009. In absolute terms, the proceeds from the new services were RUB 1,421 million, and from the local communications - RUB 3,552 million.

The growth of income compared to quarter 1, 2009 was driven by an increase in the subscriber base of NWT’s Broadband Internet Access service, with the number of users exceeding 939,000 people in quarter 1, 2010, and also by the local communications tariff indexation that took effect from 1 February 2010.   

The expenditures of NWT in quarter 1, 2010 were RUB 5,647 million, up by 5.6% on the same period last year. The growth of expenditures was basically due to increased depreciation charges that reached RUB 1,618 million in quarter 1, 2010, which is 22.3% more than in quarter 1, 2009.

Net income of OJSC North-West Telecom was RUB 1,424 million. The EBITDA* was more than twice the amount for the same period last year and reached RUB 3,533 million. The EBITDA margin for the reporting period was 50.7%, which is 23.2% up on the results for quarter 1, 2009.

Such a substantial increase in the performance indicators of OJSC NWT for quarter 1, 2010 was mainly fuelled by the fact that NWT’s statements for quarter 1, 2009 recognised a significant loss resulting from currency differences that had an adverse effect on the financial performance of OJSC NWT (a loss of RUB 1,095 million in quarter 1, 2009 versus a profit of RUB 87 million in quarter 1, 2010).

The Balance Sheet and the Profit and Loss Report of OJSC North-West Telecom for quarter 1, 2010 are available on the corporate website of OJSC NWT in the Economic and Finance section.

*The EBITDA is calculated as per formula: Profit/Loss before Taxes + Interest Payable - Interest Receivable + Fixed Assets Depreciation and Amortization + Leasing Costs.