On an IFRS basis, core activity revenues were RUR 9,830 million in the first half of 2006, while costs were RUR 8,014 million.
The highest growth was recorded for receipts from services to telecommunications operators. They rose more than fourfold to RUR 2,266 million.
The increased earnings from this service is primarily related to liberalization of the telecommunications market and changes in relations between operators.
Additionally, noticeable growth was observed for new services and data transmission services: compared to the similar period of last year, they increased 44.3% to RUR 881.1 million. The increase in the revenues from new services is attributable to the company's successful actions on the new services market such as launching of Internet broadband service under the @vangard trade name, and by strengthened efforts in the B2B market.
Net income for the H1 2006 was RUR 1,031 million according to IFRS, compared with RUR 1,026 million for the same period a year ago. EBITDA for H1 2006 was RUR 3,493 million - a 20% increase against the 1st half of the previous year, while the EBITDA margin grew by 6.1, reaching 35.5%.
"The improved business efficiency of North-West Telecom is an effect of the company restructuring in 2005, of revised marketing and investment priorities of the company, and of its enhanced customer facing," Vladimir Akulich, Chief Executive Officer, said.
