Ukrtelecom 2007 Business Plan Approved

Yesterday the Cabinet approved the financial and business plan of Ukrtelecom (UTEL: HOLD) for 2007. No parameters of the plan were announced except planned net income (about USD 53 mln) and revenue (USD 1.2 bln, or a 14% drop yoy). According to UTEL’s CEO, intensive CapEx in the mobile segment development is foreseen. Alexander Paraschiy: The fact the Cabinet released  such an early approval of UTEL’s 2007 business plan is positive in and of itself (last year’s plan was approved only in June). However, it is not clear whether the announced numbers are related only to the fixed-line segment, or to both fixed-line and mobile. Previously, UTEL planned sales of USD 1.3 bln and 80 mln losses for 2007 – all the losses are related to mobile segment. We expect an announcement by UTEL of their business plan to clarify the situation.