North-West Telecom JSC has summed up the results of its financial and business activities for the year 2005 according to the Russian Accounting Standards.  

According to the results of the year 2005, the whole revenue of the Company grew by 32.7% as compared to the previous year and amounted to RUR 20,381 million, in comparable figures revenue grew by 14.6%.

In comparable figures the 14.7% growth of the revenue from communication services was based on organic growth by the increase in the volume of services provided and the growth of the rates for local communication The income of NWT from the provision of non-regulated communication services (new services) grew in comparable figures by 14% in 2005 as compared to the previous year and amounted to RUR 6,506 million.

The prime cost of sold services amounted to RUR 16,581 million, including RUR 16,285 million from communication services. The proceeds from the sale of communication services amounted to RUR 19,715 million, which is 33.4 % higher than for the previous year.    

The net profit of NWT JSC for 2005 amounted to RUR 1,853 million, which is 39.6% higher than in 2004. The growth of net profit in comparable figures for 2005 amounted to 31.7%. 

Commenting on the results of the year 2005, Venera Khusnutdinova, Chief Financial Officer of North-West Telecom JSC noted: "JSC NWT has succeeded in showing good financial and business results for the year 2005. We have exceeded the figures both planned in the original business plan for 2005 and adjusted taking into account the cost saving program. In spite of the fact that we have carried out a large-scale structural reorganization, during which 18% of the personnel was cut down and, as a consequence, considerable compensation payments were effected, we have managed to achieve a substantial increase in the EBITDA figure – to RUR 5,468 million, which is 49.6% higher than in 2004, and to improve the EBITDA profitability and net profit figures as compared to the target indices, achieving 26.8% and 9.1% respectively."

In 2005 OJSC NWT worked actively on exacting accounts receivable. The total accounts receivable for the year decreased by 11%, to RUR 2,390 million, while accounts receivable for communication services was reduced by 27%, to RUR 1,689 million. At the same time, NWT managed to cut down significantly (by 49%) the share of the outstanding accounts receivable for communication services.  

The investment plan of OJSC North-West Telecom for 2005 was fulfilled 102% and the number capacity commissioning plan was exceeded by 6%. 391.9 thousand numbers were put into operation in 2005, including 125.1 thousand new ones. Thus, the installed capacity of OJSC NWT as of the end of 2005 was 4,807.5 thousand numbers. The network digitalization level reached 54%. The queue for telephone installation was reduced in 2005 from 203.1 thousand to 109.3 thousand unsatisfied applications (taking into account the newly received requests).

The Accounting Balance Sheet and the Profit and Loss Report of JSC North-West Telecom for the 2005 have been published on the corporate site of NWT JSC in the "Economics and Finance" section.

* The data of the financial reporting for the year 2005 are unaudited.

** Comparable figures are data taking into account the results of the activities of the affiliated JSC Lensvyaz and JSC Svyaz of the Republic of Komi as if the affiliation took place as of the start of 2004.