×
Enjoying ad-free content?
Since July 1, 2024, we have disabled all ads to improve your reading experience.
This commitment costs us $10,000 a month. Your support can help us fill the gap.
Support us
Our journalism is banned in Russia. We need your help to keep providing you with the truth.

Comstar Triples Q1 Profits

Fixed-line telecoms operator Comstar easily beat forecasts by more than tripling first-quarter profits thanks to higher sales, lower debt costs and a one-off gain.

The company said its first-quarter net profit rose to $60.3 million versus $39.7 million in a Reuters poll on analysts, while consolidated revenues were up 7 percent year on year in ruble terms to $407.0 million.

In the fourth quarter, the company, controlled by mobile phone operator MTS, missed market expectations but said it expected mid-single-digit revenue growth in 2010 as the economy recovers.

It gave no forecasts in its first-quarter report.

It said revenues rose on the back of growing domestic and international long-distance and calling-party-pays traffic volumes, as well as the growth in the broadband Internet.

Operating expenses, when excluding depreciation and amortization costs, were down 3 percent year on year in ruble terms, reflecting a $19 million reversal of previously accrued expenses for a canceled 2008 phantom option program.

Interest expenses also fell 9 percent quarter on quarter and by 28 percent year on year, reflecting repayment of certain borrowings and the reduction in interest rates on a Sberbank loan.

The company also avoided posting forex losses similar to 2009 and said core earnings were up 24 percent year on year in ruble terms to $178.8 million.

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more