North-West Telecom has summed up its business results for the 1st quarter of 2007 according to the Russian Accounting Standards (RAS).

By the results of the 1st quarter of 2007, the proceeds were RUR 5,732,988,000, an increase of 19.4% against the 1st quarter of 2006.

The costs of North-West Telecom increased by 23.5% compared to the similar period of the last year, reaching RUR 4,032,526,000. The sizeable increase of the costs against the 1st quarter of 2006 is primarily attributable to the changes in the procedure of settlements between communication operators valid from 01.07.2006.

The sales profit grew by 10.6% against the 1st quarter of 2006, making RUR 1,700,461,000.

The main factors of the proceeds growth were earnings from new services, intrazonal communication, and local communication, which grew by 74.2%, 56.6% and 12.1% respectively, compared to the similar period of the last year. In the 1st quarter of 2007, the earnings from new services were RUR 629,625,000, from intrazonal communication, RUR 522,291,000, and from local communication, RUR 3,069,020.

The EBITDA indicator was RUR 2,273,726,000 in the 1st quarter of 2007, exceeding the similar value of 2006 by 33.7%. The EBITDA margin reached 39.7%, which is 4.2 percent higher than in the 1st quarter of 2006.

The net profit of North-West Telecom was RUR 1,007,834,000 by the results of the 1st quarter of 2007, which is 50.4% higher than in the similar period of the last year.  

The improvement in the financial activities of North-West Telecom indicates the Company’s stronger position on the market (actively growing number of broadband access users, higher earnings from intrazonal connections, and higher earnings from local communication related to tariff plan-based system of local communication payments adopted from 01.02.2007), and proves the successful adaptation of NWT to the new legislation.

The balance sheet and the Profit and Loss Statement of North-West Telecom OJSC for the 1st quarter of are posted on the NWT corporate website, in the Economy and Finance section.  

The (RAS) audited accounts for 2006 is posted on the NWT corporate website, in the Economy and Finance section.