Russian fixed line telco Center Telecom, part of the state-backed Svyazinvest group, has posted a 28.9% year-on-year increase in net income to RUB2.43 billion (USD97 million) in the first six months of 2008, on revenues that increased by 3.84% to RUB16.94 billion, compared to RUB16.31 billion in the first half of 2007. Operating profit rose by 19.4% to RUB4.29 billion in the six months ended 30 June 2008, whilst EBITDA improved by 13.7% to RUB6.65 billion, compared to RUB5.85 billion in 1H 2007. Center’s broadband internet subscriber base increased by 43.9% in the period to 437,372 at end-June.
Parent group Svyazinvest’s net profit in 1H 2008 under Russian Accounting Standards (RAS) rose by 6.5% to RUB17.53 billion (USD721.9 million), while revenues were up 3.9% at RUB123.70 billion.
Center Telecom is one of Svyazinvest’s seven mega-regional operators, and is licensed to provide local, long-distance and international telephony, data transfer, internet, ISDN and wireless access services. Covering the Central Federal District, it is Russia’s second largest wireline telco in terms of sales volume, and is owned by Svyazinvest (38.02%), other Russian companies (53.05%), foreign companies (0.61%), and individuals (8.32%).