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Rostelecom - the Far East (Dalsvyaz)

Company

Macroregional branch "Far East" of JSC Rostelecom ("Rostelecom - Far East") – structural division of JSC Rostelecom which operates on the territory of the Far Eastern Federal District. "Rostelecom - Far East", the having administrative center in the city of Vladivostok, is created in April, 2011 based on JSC Dalsvyaz after accession of this company to JSC Rostelecom and today integrates seven regional branches – Amur, Kamchatka, Magadan, Seaside, Sakhalin, Khabarovsk and also SakhaTelecom branch.

Owners:
Rostelecom

Assets

The company renders communication services in Primorsk, the Khabarovsk, Kamchatka regions, Amur, Magadan, Sakhalin and in the Jewish Autonomous Region. In the territory of the Sakha (Yakutia) Republic Dalsvyaz is provided by subsidiary company JSC SakhaTelecom. Six branches are a part of JSC Dalsvyaz: Amur branch, Magadan branch, Sakhalin branch, Khabarovsk branch, Kamchatka branch, Seaside branch. The company takes individual share in activity of 8 operators of the Far East.

Together with subsidiary companies JSC Dalsvyaz 1/3 parts of the Russian Federation work at the territory equal on the area. The company has the biggest customer base in the region – more than 1.36 million subscribers. JSC Dalsvyaz provides almost all list of telecommunication services – from services of fixed connection to data services based on the most modern technologies.

The share of revenues of the company in the market of communication services of the Far Eastern Federal District (including income from services of cellular communication) as of 6/30/2009 makes 25.6%. A share in the market of services of broadband access - 74%, local communication – 90%, intra-zone communication – 91%.

Authorized capital of the company is 2,535,006,440 rubles, is separated into 95,581,421 ordinary and 31,168,901 exclusive actions. Stocks of the company address on the Russian trading system stock exchange and at the MICEX Stock Exchange. ADR

Financial performance of activity

Unaudited results of activity according to the results of 9 months 2010, according to the International Financial Reporting Standards (IFRS): revenue of the company for the reporting period made 13,419 million rubles that is 5.4% more than for the same period of 2009. Revenue from communication services increased by 4.8% and made 13,015 million rubles. The indicator of OIBDA grew by 4.9% up to 4,986 million rubles, OIBDA margin made 37.2%. The indicator of EBITDA increased by 4.9% to 4,996 million rubles, EBITDA margin made 37.2%. Net profit in 9 months 2010 grew by 11.3% and reached 2,155 million rubles.

The audited consolidated results of activity in twelve months 2010 on the IFRS standards. For the reporting period sales proceeds increased by 6% and were 18,274 million rubles. The indicator of OIBDA was 6,132 million rubles (-1%). Profit on operating activities decreased by 1% up to 3,771 million rubles, net profit decreased by 2% up to 2,470 million rubles.