North-West Telecom has summed up the results of its operation for the year 2005 according to the International Financial Reporting Standards (IFRS). Financial accounts and reports of JSC North-West Telecom were audited by the Ernst and Young auditing company. 

According to IFRS the revenue for 2005 grew by 32.9 and amounted to RUR 20 541.9 million.

The main share in the revenue structure consisted of revenue from local telephone access, the growth of which amounted to 45.6% in 2005. The highest growth rate 59.4% was shown by the revenue from new services (Internet access, including broadband access and ISDN, intelligent network services, etc.), which ensured 5.3% of the revenue (against 4.4% in 2004).   

The EBITDA increased by 41% for 2005 and amounted to RUR 5 608.7 million, EBITDA margin grew by 1.63 p.p. and amounted to 27.3%.

Net income according to the IFRS grew by 109.8% in 2005 to RUR 1 410.9 million.

For the first time in the history of Company the auditor opinion have been prepared without reservations. The main peculiarity of these reports was a full audit of own funds of JSC NWT, fixed assets (telecommunications equipment and networks) were appraised with the participation of American Appraisal Inc. Moreover in these report removed all reservations in connection with merged companies. North-West Telecom has been evaluating its pension obligations, inviting an independent actuary, for two years on end

As Vladimir Akulich, Chef Executive Officer, noted, «the North-West Telecom’s statement for 2005 according to IFRS make it possible to appraise objectively the assets, liabilities and financial results of the Company's operation for all representatives of the investment community». 

According to Ivan Rodionov, a member of the Board of Directors of JSC NWT, Chairman of the Audit Committee of the Board of Directors of JSC NWT, «we are especially proud that the reports show a fair appraisal of the value of JSC NWT's financial investment in the shares of the Telecominvest holding. The appraisal was carried out by Deloitte & Touche CIS. This is just the first step in a fair appraisal of all assets of the Company and in improving the financial transparency of OJSC NWT. We are planning to carry out a market appraisal of the real estate owned by the Company next year, which will improve the investment attractiveness of North-West Telecom and will prove our intentions in the field of enhancing Company's transparency».