Comstar posts 1Q results

15 Jun 2007

Russian telco Comstar UTS has posted a rise of 32% in its revenues to USD328.9 million in the first quarter of 2007, up from USD249.8 million a year ago. Quarterly OIBDA was up by 27% year-on-year to USD130.4 million (USD102.3 million in 1Q 2006), and operating profit climbed 23% to USD92.8 million (USD75.4 million). Net income rose 12% year-on-year from USD39.1 million to USD43.7 million. Growth was driven by high customer demand for unlimited tariff plans introduced by Comstar’s subsidiary MGTS, a positive impact of the introduction of the Calling Party Pays (CPP) call tariff framework, take-up of new broadband and double-play telephony/internet offers at internet unit Comstar Direct, as well as the continuing appreciation of the ruble against the US dollar. Group capital expenditure increased by 51% year-on-year to USD79.6 million, with investments largely focused on progressing network digitalisation and developing next generation infrastructure at MGTS, as well as the upgrading of information systems throughout the group, and TV content acquisition by the ISP division. Comstar Direct saw turnover rise to USD25.3 million in the three months to the end of March 2007, from USD20.2 million in 1Q 2006. Its number of residential broadband subscribers increased by 39% y-o-y to 398,000, whilst double-play customers crossed the 100,000 mark in the period; average monthly revenue per ADSL line was USD20.3.