Comstar’s Q1 revenues rise on MGTS, broadbandRussian communications provider Comstar – United TeleSystems (Comstar-UTS) saw its revenues and net income rise in the quarter ended 31 March. Group revenues (including MGTS) rose 32 percent to USD 328.9 million from USD 249.8 in the year-ago period. The growth was driven by high customer demand for the unlimited tariff plans introduced by MGTS, the positive impact of the introduction of ‘Calling Party Pays’ (CPP) scheme, the healthy development of the Comstar Direct broadband and double-play offers and the continuing appreciation of the Ruble against the US dollar. OIBDA was up 27 percent to USD 130.4 million versus USD 102.3 million, and operating profit totalled USD 92.8 million, up 23 percent from USD 75.4 million in Q1 2006. Comstar’s net income went up 12 percent to USD 43.7 million compared with USD 39.1 million.
Group capital expenditure increased by 51 percent to USD 79.6 million, which was comfortably in line with the group’s guidance for total capital expenditure of no more than USD 350 million this year. The investments primarily comprised the ongoing digitalisation process and development of Next Generation Network infrastructure at MGTS, as well as the upgrading of information systems throughout the group, and TV content acquisition at Comstar Direct.
Comstar’s internet arm Comstar Direct saw its revenue rise to USD 25.3 million from USD 20.2 million in the year-ago period. The number of residential broadband subscribers increased by 39 percent year-on-year to 398,000. The number of double-play subscribers increased to over 100,000, whilst the dial-up subscriber base continued to decline. Broadband revenues from residential subscribers went up 36 percent, whilst double-play revenues increased by over five times. Average revenue per ADSL line (ARPL) grew to USD 20.3.
