Government approves Ukrtelecom’s 2008 financial plan

At its meeting yesterday, the Cabinet of Ministers of Ukraine approved the financial plan of Ukrtelecom (UTEL: HOLD) for the year 2008. According to Minister of Transport and Communication Yosyp Vinskiy, the plan projects the company’s FY08 net income of UAH 8.7 mln (USD 1.8 mln). Earlier this year Ukrtelecom management submitted the company’s 2008 plan which envisaged USD 300 mln net loss. Ukrtelecom’s financial plan is scheduled to be approved today at the company’s AGM. Alexander Paraschiy: We hope to receive more details on Ukrtelecom’s 2008 financial plan at today’s AGM to verify, whether the company’s income forecast is realistic. We believe regulators and Ukrtelecom managed to upgrade significantly net income forecast, on the back of 20-32% increase of fixed local tariffs the company expects in 2008. Another possible way of net income increase is cost cutting – probably of advertizing costs.