Comstar Q2 net income up 36%

27 Aug 2009

Russian fixed line and broadband operator Comstar United TeleSystems has reported a 36% year-on-year rise in net income for the second quarter of 2009, up from RUB703 million (USD22.4 million) in Q208 to RUB958 million a year later. Revenues for the three months ended 30 June climbed to RUB11.7 billion, up from RUB9.86 billion a year earlier. On top of higher revenues, improved net income can also be partially attributed to a 77% decrease in capital expenditure as the company cut spending from RUB2.21 billion in the second quarter of 2008 to RUB500 million a year later. Sergei Pridantsev, president and chief executive officer, said: ‘We have significantly enhanced the profitability of the group during the first half of the year following the various cost reduction measures that we have taken.’

Comstar’s Moscow-based subsidiary Moscow City Telephone Network (MGTS) posted modest customer additions in both its fixed line and broadband operations, ending June 2009 with 3.6 million fixed line telephony customers and 791,000 broadband subscribers, up from 3.57 million and 783,000 the previous year. Consolidation of Comstar’s parent company Sistema’s regional assets have led to a 565% year-on-year rise in regional broadband subscriptions, up to 324,000 at the end of the second quarter. The company’s regional fixed voice customer base grew 16%, up from 226,000 subscribers in Q208 to 262,000 a year later.

Russia, Comstar United TeleSystems (Comstar UTS)