The Russian wireline and mobile operator Sibirtelecom has reported net profit of RUB1.53 billion (USD49.1 million) for the year ending 31 December 2008, a 42.5% drop from RUB2.66 billion a year earlier. The company attributed the reduced profits to a RUB1.2 billion foreign exchange loss. Revenues climbed 6.9% year-on-year to RUB37.7 billion at the end of 2008. Operating expenses also grew in 2008, up from RUB30.2 billion in 2007 to RUB33.1 billion a year later. The company expects to double its net profit in the full year 2009 as it scales back its investment and capital expenditure plans. Alexander Sheifer, Sibirtelecom’s financial director, said, ‘To minimise the effect of the financial crisis, the company is taking measures to cut down its investment programme, optimise costs, reducing the need of borrowings and improving liquidity indicators.’ The company forecasts net profit of RUB3 billion in 2009.