Uralsvyazinform: 2007 Financial Results under IFRS
Uralsvyazinform (RTS: URSI/URSIP) the leading carrier of fixed–line and mobile services in the Urals region, Russia presents the audited consolidated financial statements for the year ended December 31, 2007 prepared under International Financial Reporting Standards (IFRS). The financial statements were audited by OOO "Ernst and Young".
Revenue increased by 22.4% as compared to 2006 and amounted to US$ 1.5 bln. Revenue gains in mobile services, new services and intra–zone services were the main growth drivers.
Revenue from mobile services totaled US$ 487.1 mln. (+30.3% on 2006). The segment contributed 31.9% of overall revenues.
Revenues from new services (Internet and data transmission) amounted to US$ 136.8 mln (+44.9%). The segment contributed 8.9% of overall revenues.
Operating expenses in 2007 increased by 15.9% and totaled US$ 1,293.8 mln., mainly due to the growth in interconnection charges (+53.9%), agency fees (+63.5%), and depreciation and amortization (+23.5%). Wages and salaries expense decreased by 2.7% as a result of staff reduction and structural developments.
Operating profit amounted to US$ 235.3 mln (+77.9% on 2006). OIBDA increased by 44.8%. OIBDA margin increased from 27.1% to 32.0%. Net profit as of 2007 totaled US$ 89.7 mln, being x3.2 increase on 2006.
Financial highlights 2007–2006, US$ million:*
2007 2006** Change, % Revenues, US$ mln 1,529.2 1,249.1 +22.4% OIBDA. US$ mln[1] 489.8 338.3 +44.8% OIBDA margin 32.0% 27.1% – Operating profit. US$ mln 235.3 132.3 +77.9% Operating margin 15.4% 10.6% – Profit before income tax. US$ mln 148.4 45.6 +225.7% Net profit. US$ mln 89.7 28.0 +220.6% Net margin 5.9% 2.2% – EPS 0.0022 0.0007 +220.4%* Here and henceforth currency conversions are based on average exchange rates:
2007 –RUR 25.6. 2006 – RUR 27.1
** as adjusted
[1] OIBDA is calculated as a sum of operating profit and depreciation & amortization.
Complete accounting statements and financial review as of 2007 may be found on the corporate web–site at www.usi.ru/en/.
The senior management of Uralsvyazinform would like to invite you to take part in a conference call and webcast on Thursday, July 10, 2008. Executives at Uralsvyazinform will give a conference call on Uralsvyazinform 2007 year–end IFRS results followed by Q&A session at 3.00 p.m. Moscow time (12.00 a.m. London time). The management team will be represented by Valery Chernyshev, Deputy General Director & CFO.
The conference will be held in Russian.
Dial–in number to access the conference call is as follows:
+44 (0)20 7806 1953 (UK Toll)
+7 (495) 789 8156 (Russia Toll)
Please, quote Confirmation code: 9445841
Participants will have to quote the above code when dialing into the conference.
To help ensure the conference begins in a timely manner, we kindly ask all participants to dial in 5 to 10 minutes prior to the scheduled start time.
The webcast will be available live and in 1 hour after the conference call at:
For additional information. please contact IR department on tel. (007 343) 379–12–19. 379 1859 or e–mail: investor@gd.usi.ru.
The most recent company information is also available at www.uralsviazinform.com. www.skrin.ru (complex disclosure information system) or URSI_RU page in Bloomberg system and URSI.RTS page in Reuters system.