JSC North-West Telecom has summarized its performance for the 1st quarter of 2006 according to the Russian accounting standards. According to the results of the financial and economic activities, the revenue from sales amounted to RUR 4,800,948 thousand, including RUR 4,441,588 thousand from communication services. As compared to the same period of the last year, the revenue from sales decreased by 2.2%, including the decrease of 6.8% from communication services.  

At the same time income from new services (VAS) increased by 52.1% as compared to the 1st quarter of 2005 and amounted to RUR 361,475 thousand.

Expenses of OJSC North-West Telecom decreased by 12.1% as compared to the same period of the last year and amounted to RUR 3,265,011 thousand. The prime cost of sold services was RUR 3,098,230 thousand, which is 15.2% less than for the 1st quarter of 2005.

The reduction of JSC NWT's proceeds is accounted for by the liberalization of the market of telecommunications and the new rules of interaction between operators (Since 01.01.2006 JSC NWT has been an agent of long-distance operators and showed up only revenue from origination traffic and agency fee).

The EBITDA for the 1st quarter of 2006 amounted to RUR 1,700,602 thousand, having exceeded the index for the 1st quarter of 2005 by 12.9%. The EBITDA margin according to the results of the 1st quarter of 2006 amounted to 35.4%.

Net profit of JSC North-West Telecom amounted to RUR 670,131 thousand, which is 5,1% more than for the same period of the previous year. The increase in net profit shows up the strength of Company’s market position and the efficiency of control over Company’s cost.