Comstar fourth quarter saves the year

18 Apr 2008

Russian fixed-line operator Comstar has reported that its full year 2007 net profit fell 47% to USD43.8 million compared to a year earlier. This was lower than the fourth quarter result of USD51.8 million, compared to a year-earlier loss of USD63.1 million. OIBDA for the full year rose 55% to USD63.2 million while consolidated revenue reached over USD1.56 billion, up 39%. Annual operating profit more than doubled to USD485.3million.

Fourth quarter revenue rose 65% year-on-year from USD92.1 million to USD482.1 million on the back of strong demand for its fixed line phone and internet service packages. OIBDA more than doubled to USD200 million, while OIBDA margin was 41.5%.

CFO Irina Matveeva said Comstar expected revenue to grow by 15%-20% in 2008, while President and Chief Executive Sergei Prodantsev said growth would focus on five areas: broadband, regional expansion, group structure, Moscow fixed-line operating subsidiary MGTS and Svyazinvest. He said the company aimed to boost its residential broadband subscriber base in Moscow to more than a million by the end of 2008, from 651,000 at the end of 2007 (up 81% from 360,000 in the fourth quarter of 2006), and to double its regional broadband subscriber base.

Russia, Comstar United TeleSystems (Comstar UTS)