Golden reports better-than-expected profits, broadband rollout progress

4 Aug 2006

Russian alternative telco Golden Telecom yesterday posted its financial results for the second quarter of 2006, with net profit boosted by regional expansion and growth in broadband internet services. Second quarter net income rose to USD22.6 million from USD19.8 million in the same period a year ago, compared with an average forecast of USD21.5 million from seven analysts polled by Reuters. EBITDA reached USD57.9 million, up from USD50 million in the second quarter of 2005, although EBITDA margin slipped two percentage points to 29%, slightly below analysts’ average predictions of 29.5%. Revenues rose to USD197 million (USD165.5 million), exceeding a forecast of USD185.9 million. ‘We look forward to further revenue growth as we see the fruition of investments in our broadband and federal transit network projects,’ Golden’s CEO Jean-Pierre Vandromme said in a statement.

In a separate story, Golden Telecom announced this week that it has installed 3,000 out of a planned 5,000 Wi-Fi nodes in Moscow, and reported progress in its ongoing DSL infrastructure rollout in the capital and its environs, and other cities in Russia and CIS countries, with over 2,100 DSL nodes already installed (yielding a combined capacity of 58,806 ports). The company plans to provide triple-play services including broadband internet access, VoIP and digital TV in selected areas.

Russia, Golden Telecom (Vimpelcom)