The interregional telecom provider said revenue grew because revenues from local telephone connections rose 36.8%, network numbering capacity increased and tariffs were revised. In addition, earnings from new services increased 43.5% and revenues from services to Russian communications operators rose 32.2%.
The company mainly derives its revenues from providing local, intercity and international calls (37.7%, 30.4% and 6% correspondingly).
Director general Sergei Pridantsev said the company had managed to stop spending growing faster than revenues in 2005.
"Increased efficiency was primarily achieved in CenterTelecom's key segments: local telephony and new services," he said. "In 2006... CenterTelecom will reduce total investment but will send more funds to develop new promising communications services. This strategy will increase the company's profits."
CenterTelecom is part of the Svyazinvest state telecoms holding and is one of the biggest communications operators in the Central Federal District. Svyazinvest owns 50.7% of the company's voting shares, the Federal Property Fund holds 9.6%.
