Russian regional operator Uralsvyazinform’s net profit declined 45.4% on the previous quarter in April-June 2006 to RUB555 million (USD20.7 million). The Urals-based telco said the declining performance was due to faster growth in spending on ordinary activities against growth in earnings. Operating profit narrowed by RUB109 million, whilst profit tax payments grew 70% and non-operating expenditure also increased. Uralsvyazinform is the leading regional telco in the Urals Federal District and Perm region. It operates under its own name in Yamal, Nenezkiy, Cheliabinsk, Ekaterinburg, Khanty, Mansiysk, Kurgan, Perm and Tiumen, offering a full portfolio of fixed line services to a total of 3.58 million subscribers at the end of 2005; it is controlled by Russian telecoms giant Svyazinvest.