Sector: Telecommunications, IT
Volgatelecom has released strong IFRS results for FY 2007, which confirms the fact that the company is one of the most efficient multiregional companies of Svyazinvest holding. The company's margins and revenue have demonstrated a robust growth, which has a positive impact on the operator's investment attractiveness.
On August 8, Volgatelecom, the local, zone and mobile communications operator of the Volga region, released its FY 2007 financial report audited to IFRS.
Volgatelecom is traditionally one of the strongest multiregional companies from the financial point of view: the company operates in a region with a strong economy, has a large cellular business and actively develops new services. The FY 2007 IFRS report has clearly upheld the strengths of the company.
The operator's revenue grew by 19% in the reporting period, which is a very strong result, in our view: for example, Sibirtelecom's revenue rose by 17%, and that of Uralsvyazinform advanced by 16%, given both operators have good cellular businesses, as does Volgatelecom. OIBDA margin went up by 2% to 37%, almost a record high for Svyazinvest, which shows the proper character of the steps taken by the management amid high inflation. Net profit margin surged 1%, which is also a good result.
Volgatelecom: Key IFRS Financials FY 2007
| | 2006 | 2007 | 2007/2006 |
|---|
| Revenue | 25.226 | 30.036 | 19% | | OIBDA | 8.803 | 11.090 | 26% | | OIBDA margin | 35% | 37% | 2 p.p. | | Net profit | 2.243 | 3.052 | 36% | | Net profit margin | 9% | 10% | 1 p.p. |
Source: company data, Finam's forecasts and estimates
We currently do not have a recommendation for Volgatelecom shares.
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VolgaTelecom
Capitalization: $227 928 009,06
Common shares:
Price: $0,73
Delta week: 9,4%
Delta month: -5,1%
Delta year: -87,4%
Preferred shares:
Price: $0,59
Delta week: 5,8%
Delta month: -11,5%
Delta year: -85,3%
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0.569
0.073
