Ukrtelecom’s EBITDA declines 53% yoy in 1H08

Ukrtelecom (UTEL: HOLD) raised its net revenue 1.3% yoy to USD 673.6 mln in 1H08. The company’s EBITDA declined 53% yoy to USD 106.2 mln. Ukrtelecom incurred a net loss of USD 21.0 mln in 1H08 vs. net income of USD 34.2 mln in 1H07. Alexander Paraschiy: According to management, Ukrtelecom’s financial results were better than they initially expected (management forecasted a USD 250 mln net loss in FY08). Key factors which spoiled the company’s bottom line were increases in operating costs at sticky local fixed line tariffs (the regulator is now considering a tariff upgrade); increases in D&A expenses (+ USD 15 mln yoy) and higher marketing expenses (+ USD 26 mln yoy).