MOSCOW, October 13 (RIA Novosti) - Russia's largest mobile handset retailer, Euroset, said on Monday its net profit calculated to Russian Accounting Standards declined 50.5% year-on-year in the first half of 2008 to 85.2 million rubles ($3.25 million).

Euroset's turnover grew 1% in January-June to 2.85 billion rubles ($108.8 million), while pre-tax income was 145.5 million rubles ($5.55 million), against 239 million rubles ($9.12 million) in the same period of 2007. Gross profit rose 3.7% year-on-year to 107.6 million rubles ($4.1 million).

The company was founded in 1997. Euroset, which has over 5,000 retail outlets in Russia and former Soviet republics, was bought by Russian billionaire Alexander Mamut's investment company ANN on September 21, reportedly after debt refinancing problems.