Golden Telecom’s Q2 performance solid

5 Aug 2005

Russia’s largest independent fixed line operator Golden Telecom reported a 17% year-on-year rise in net income to USD19.8 million, on an 18.4% rise in revenues to USD165.5 million. Earnings before interest, taxation, depreciation and amortisation (EBITDA) rose from USD43.5 million to USD50.5 million, although the company reported competitive pressure on revenues in major cities and the regions was a cause for concern. In the face of stiff competition from established and new carriers in the traditional voice services market, Golden Telecom is ramping up its activities in the broadband internet access arena. Although its internet business made an operating loss of USD600,000 in the second quarter from a profit of USD600,000 last time round, the operator is confident that the unit will perform better in the future and is currently exploring opportunities to enter the broadband market in major cities such as Moscow.

Russia, Golden Telecom (Vimpelcom)