AFK Sistema, one of Russia's largest diversified corporations with business ranging from banking to telecommunications, said its consolidated earnings grew by 32.4% in the reporting period, to $7.59 billion, and that operating income before depreciation and amortization (OIBDA) climbed 21.1%, to $2.98 billion. The value of the corporation's aggregate assets rocketed 48.4%, to $13.09 billion.
Founded in 1993, AFK Sistema manages businesses in service-based industries, including telecommunications, technology, insurance, banking, real estate, retail, and media. The company's main shareholder is Vladimir Yevtushenkov (62.1%), who is also its founder and chairman of the board of directors.
The company said its operating profit grew by 17.6% in the reporting period, to $1.96 billion.
The earnings of the company's businesses increased by 27.7%, to $1.58 billion, and the consolidation of new businesses including Barash communications provider, S-Toys children's toys wholesale firm, and Tyumenneftegazsvyaz fixed-line phone operator, added $279 million to its earnings.
Sistema's non-telecoms businesses registered the highest growth in 2005, and the earnings of its Ukraine and CIS operations rose from $1.15 billion in 2004 to $1.78 billion last year.
The company's long-term liabilities grew 28.5% to $3.21 billion as of December 31, 2005, while current liabilities doubled to $1.16 billion, after Sistema received several loans with short-dated maturities. The company repaid some of the loans in early 2006.
