22 Sep 2009 18:26

Russia's VolgaTelecom expects IFRS earnings to grow 12% to 3.3 bln rubles in 2009

MOSCOW. Sept 22 (Interfax) - Russia's VolgaTelecom plans to increase net profit under International Financial Reporting Standards (IFRS) by 12% to 3.275 billion rubles in 2009 from 2.936 billion rubles in 2008, the company said in a statement.

Sales revenue is to grow 5% to 33.558 billion rubles, EBITDA (earnings before interest, taxes, depreciation and amortization) is to rise 8% to 12.966 billion rubles and the EBITDA margin is to increase to 38.6% from 37.4%.

VolgaTelecom said earlier on Tuesday that it boosted IFRS net profit 7.1% to 1.845 billion rubles in the first half of 2009 compared to the same period of 2008. Sales revenue rose 2.2% to 16.1 billion rubles, EBITDA - 12.1% to 7.005 billion rubles and the EBITDA margin - 3.9 percentage points to 43.8%.

The company expects to have capital expenditures of 3.5 billion rubles in 2009, down considerably from 10.6 billion rubles in 2008, VolgaTelecom general director Vladimir Rybakin said during a conference call on Tuesday. Capex totaled 1.1 billion rubles in the first half of 2009 wit more than 28% of those funds invested in new technologies, most notably data transmission.

Rybakin said the company would return to pre-crisis levels in terms of investment in 2010 with capex of about 7 billion rubles.

VolgaTelecom is a leading Russian interregional communications operator. The Svyazinvest holding owns 51% of voting shares (38% of charter capital).