Comstar’s core operational profit up 40%, but overall net loss increases

30 Nov 2007

Russian fixed line operator Comstar UTS has reported a 40% year-on-year increase in net profit from core operations in the quarter ended 30 September 2007, on revenues that rose by 28% year-on-year to USD372.2 million. Quarterly operating income before depreciation and amortisation (OIBDA) was USD159.7 million, with third-quarter OIBDA margin increasing to 43% from 39% a year ago. Comstar, part of the Sistema group, posted a 3Q07 net loss of USD68.8 million compared with USD48.3 million a year ago due to a non-cash impact of a revaluation of put and call options. Analysts quoted by Reuters had forecast a net loss of USD81.8 million. Moscow-based ISP Comstar-Direct, 52% owned by Comstar UTS, reported that it ended the third quarter with 106,000 subscribers to its double-play offering of broadband and IPTV services, compared to 58,600 in the same period of 2006. The ISP also reported that it had a total of 452,600 subscribers to its broadband services by the end of October 2007, compared to 313,200 a year ago. Total revenues from its residential broadband services rose 19% year-on-year to USD25.1 million in 3Q07.

Russia, Comstar United TeleSystems (Comstar UTS)