Transtelecom IFRS net profit down 24% in 2008; revenue up 14%
MOSCOW. June 17 (Interfax) - Fiber-optic network operator Transtelecom (TTK) posted a net profit of 1.9 billion rubles in 2008 under International Financial Reporting Standards (IFRS), down 24% from the profit of 2.5 billion rubles in 2007, TTK said in a statement.
TTK boosted revenue 14% to 27.5 billion rubles.
Revenue from communications services rose to 20.6 billion rubles from 16.95 billion rubles in 2007.
The company said profit declined following the kickoff of "a massive investment program aimed at entering the retail market."
TTK had a 35% share of backbone internet traffic in 2008, down from 46% in 2007. The share of the national channel leasing market declined to 37% from 28% but rose to 27% for the international channel segment from 18%. TTK had a 35% share of the VPN segment.
The TTK group includes CJSC Transtelecom Company and 18 subsidiaries. Russian Railways (RZD) is the sole owner. TTK's fiber-optic network stretches more than 53,000 kilometers with throughput of 50 gigabits/second. The network, which parallel's the nation's railroad routes, has more than 1,000 access nodes and links Europe and Asia.