print version 

Find company
Home About the ProjectContact usFor the Clients
Enter code or ISIN
 
alpha / industry search

Issuers' Corner
Press Releases
Annual Reports Library

Financial Statements
SEC & FFMS Filings
Corporate Presentations
GM Materials
Issues Documents
Corporate Governance Materials
Russian Company Guide
Company Profiles
Corporate Calendar
Markets Corner
Consensus Estimates
Media Corner
News Line


Get updates



Home  Issuers' Corner  Press Releases REGISTER LOG IN

Press Releases

company search
all press releases
all UTK press releases

UTK

August 24, 2004

UTK OJSC terminates its participation in Astrakhan Mobile CJSC and Volgograd Mobile CJSC

Southern Telecommunications Company (“UTK”) (RTS: KUBN; OTC: STJSY), the principal telecommunications provider for Russia’s Southern Federal District, announced that it has ended its participation in Astrakhan Mobile CJSC and Volgograd Mobile CJSC, transferring its stake in these companies to MTS CJSC effective August 24, 2004. This decision of the Board of Directors of UTK OJSC will increase the Company’s focus on its core operations and enhance the efficiency of the investment program.

Prior to the transaction, UTK OJSC held a 50% interest in the share capital of both Astrakhan Mobile CJSC and Volgograd Mobile CJSC. The business case for UTK’s continued participation was not justified due to UTK’s lack of a controlling interest in these mobile subsidiaries, the high capital expenditures required by these businesses and the steadily declining profitability of the wireless segment. Given the trends in the mobile market and rising competition between wireless operators attracted by the region’s significant remaining growth opportunities, the Board of Directors of UTK OJSC decided to terminate the Company’s inefficient participation in these ventures. This will enable UTK OJSC to further focus its efforts and financial resources on the Company’s position in the growing market for new telecommunication services.

Profile of Astrakhan Mobile CJSC: The company is the sole operator in Astrakhan region providing wireless services in the AMPS 800 standard. Total subscribers at the end of 2003 reached 8,100. 2003 revenues were RUR 34.6 mln (a decrease for the year of 34%), with a net loss of RUR 5 mln. Astrakhan Mobile CJSC holds a GSM-1800 license for provision of wireless communication services in Astrakhan region; however, the company has not begun construction of the GSM-1800 network.

Profile of Volgograd Mobile CJSC: The company provides wireless communication services in the DAMPS standard and operates a network in Volgograd region. The total number of subscribers at the end of 2003 was 5,100 (a 60% decrease for the year). Revenues for 2003 were RUR 30.3 mln (down 33%), with a net loss of RUR 22.1 mln. The company holds [the or a] license for the provision of GSM-1800 wireless communication services in Volgograd region. Construction of the GSM-1800 network has been underway since 2002.

 

 

 

Search by industry

Agriculture, Foresty and Fishing | Chemicals | Engineering | Ferrous Metals | Financial, Insurance & Real Estate | Food & Kindred Products | General Construction | Information Technology | Media & Publishing | Non-Ferrous Metals | Oil & Gas | Pharmaceuticals | Power Industry | Precious Metals and Diamonds | Telecommunications | Transportation | Wholesale & Retail Trade

Search by alpha index

A B C D F G H I K L M N O P R S T U V W X Z


Site Map
© RUSTOCKS.com
Privacy Statement | Disclaimer