Moscow, October 27, 2010 - CenterTelecom has summed up the company’s financial results for the first nine months of 2010 according to Russian Accounting Standards (RAS).
Key Financial Highlights for January-September 2010, RUB Million
|
Indicator |
9M 2010 |
9M 2009 |
Relative deviation |
Absolute deviation |
|
Revenue from core operations |
29,424 |
26,776 |
9.89% |
2,649 |
|
including revenue from telecommunications services |
27,758 |
25,249 |
9.94% |
2,509 |
|
Expenditure on core operations |
23,187 |
21,738 |
6.66% |
1,448 |
|
including depreciation |
2,923 |
3,277 |
-10.81% |
-354 |
|
EBITDA (1) |
13,383 |
12,803 |
4.53% |
580 |
|
EBITDA margin (2) |
45.48% |
47.81% |
- |
-2.33 pp |
|
Sales profit |
6,237 |
5,038 |
23.80% |
1,199 |
|
Net profit |
5,321 |
4,072 |
30.66% |
1,249 |
|
Net profit margin |
18.08% |
15.21% |
- |
2.87 pp |
Characteristics of operational efficiency:
- The number of telecommunications lines per employee rose 5.7% to 247.9 lines (234.4 lines for January-September 2009)
- Revenue per line for January-September 2009 increased by 10.1% from RUB3,895 in January-September 2009 to RUB4,288.92 for the reporting period
- Revenue per employee for January-September 2010 reached RUB1,063,000 or 16.4% more than in January-September 2009 (RUB913,000).
- Personnel numbers were reduced by 5.6% to 27,676 employees (29,322 in January-September 2009)
Income Structure for January-September 2010, RUB Million
|
Indicator |
9M 2010 |
9M 2009 |
Relative deviation |
Absolute deviation |
|
Intra-zone telephony services |
4,309 |
4,498 |
-4.21% |
-189 |
|
Local telephony services |
14,172 |
12,736 |
11.28% |
1,437 |
|
Telegraph communications services, data transmission and telematic services |
5,613 |
4,518 |
24.24% |
1,095 |
|
including data transmission and Internet access services |
5,445 |
4,369 |
24.64% |
1,076 |
|
Interconnection and traffic transfer services |
2,871 |
2,702 |
6.25% |
169 |
|
Cooperation and agency services |
745 |
752 |
-0.94% |
-7 |
|
Other income from core operations |
792 |
795 |
-0.39% |
-3 |
|
Other income from non-core operations |
922 |
775 |
18.88% |
146 |
|
including income from lease of assets |
663 |
574 |
15.35% |
88 |
|
Total |
29,424 |
26,776 |
9.89% |
2,649 |
For the first nine months of 2010 CenterTelecom's revenues increased by 9.89% against the same period of 2009. Among key drivers of growth were:
- 50.6% increase in the number of subscribers of broadband Internet access services reaching 1,521,883 users (against 1,010,826 subscribers as of September 30, 2010), and 38.5% growth of the number of data transmission network subscribers to 18,554 users (against 13,404 subscribers of September 30, 2010). It contributed to 24.24% increase in revenues (RUB5.613 billion) from telematic and data transmission services in comparison with 9M 2009 data.
- 11.28% increase in revenues from local telephone communications (RUB14.172 billion) against 9M 2009 caused by the subscribers' switch to time based billing. For the period from October 1, 2009 to October 1, 2010 41.8% CenterTelecom's subscribers have switched to unlimited tariffs. It contributed to increase in ARPU. Another factor contributed to the rise in revenues from local telephony was an adjustment of tariffs (9.6% increase in tariffs in Russia's Central Federal District on the average) in February 2010.
CenterTelecom’s Expenses Structure for January-September 2010, RUB Million
|
Indicator |
9M 2010 |
9M 2009 |
Relative deviation |
Absolute deviation |
|
Depreciation |
2,923 |
3,277 |
-10.81% |
-354 |
|
Personnel costs, social security |
7,253 |
6,664 |
8.84% |
589 |
|
Material costs |
1,789 |
1,579 |
13.31% |
210 |
|
Expenses on telecommunications operators’ services |
2,099 |
1,911 |
9.83% |
188 |
|
Rent payments |
3,676 |
3,628 |
1.32% |
48 |
|
including current lease payments |
3,160 |
3,117 |
1.40% |
44 |
|
Charges to Universal Telecommunications Service Fund |
290 |
263 |
10.09% |
27 |
|
Other expenses |
5,157 |
4,416 |
16.78% |
741 |
|
Total: |
23,187 |
21,738 |
6.66% |
1,448 |
Vaagn Martirosyan, General Director, CenterTelecom, commenting on the company's results, said: "CenterTelecom's thorough adherence to the company's development and transformation strategy, its focus on promotion of high yield products and services and on the customers' needs is a guarantee of the company's growth and its high profitability."
CenterTelecom’s RAS financial statement for 9M 2010 is available at the company's web site.
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