JSC North-West Telecom has summed up its business performance results for the 1st half of 2006 under the Russian Accounting Standards. According to the financial and business activity results, the revenue amounted to RUR 9,693,182 thousand, including RUR 8,913,092 thousand on communications services. As for the same period of the previous year, the revenue fell by 1.4% and the revenue from communications services fell by 6.7%. The reduction in revenue and expenses of JSC NWT was caused mainly by the long-distance communications market liberalization.

At the same time, the revenue from new services rose by 70.6% as compared with the 1st half of 2005 to RUR 753,546 thousand. Such a considerable rise in revenue from new services was the result of NWT’s policy aimed at diversifying revenue from communications services and increasing the share of revenue from highly profitable non-regulated services in the total revenue of the Company.

The expenses of JSC North-West Telecom reduced by 7.3% as compared with the 1st half of 2005 to RUR 6,929,505 thousand. The prime cost of the communications services sold was equal to RUR 6,521,215 thousand, which is 11.4% less than in the 1st half of 2005. It is noteworthy that the profit rate is growing and revenue are outpacing expenses as the latter reduced by 7.3% while the former decreased by only 1.4% as for the same period of the previous year.

In the 1st half of 2006, the EBITDA amounted to RUR 3,458,887.5 thousand, 18% up as compared with the 1st half of 2005. The EBITDA margin for the 1st half of 2006 was equal to 35.7%, evidencing a high efficiency of the Company business.

North-West Telecom’s net income was RUR 1,348,834 thousand, 16.6% up as compared with the same period of the past year. The net incomet growth is an evidence of consolidation of the market standing of the Company, efficiency of the choice of aggressive marketing policy in promoting new services and measures for saving the Company’s expenses.

The Balance Sheet and Profits and Lost Report of JSC “North-West Telecom” for the 1st half of 2006 are available at «Economic & Finance».