Golden Telecom net income hit

9 May 2007

Golden Telecom, one of Russia’s largest fixed line operators, revealed yesterday that first quarter net income fell 36% to USD12.6 million against the fourth quarter 2006, hit by costs of a management incentive scheme. EBITDA fell from USD70.4 million to USD65.6 million as revenue in the seasonally weak first quarter grew by only 2% quarter-on-quarter. On a year-on-year basis revenue was up 44%, to USD255.7 million. Analysts expected a pickup in sales growth after the telco launched long-distance and international operations in Russia on 29 January and Wi-Fi services in Moscow on 1 February.