Ukrtelecom Announces Preliminary 2006 Results

The net revenue of Ukrtelecom (UTEL: HOLD) amounted USD 1,327 mln (+1.4% in UAH), net income amounted to 92.6 mln, which is 10% yoy drop, but slightly above UTEL’s plan of USD 92.3 mln. Alexander Paraschiy: Net revenues are in line with our estimates of USD1,338 mln, while net income is slightly higher than we expected (USD 72 mln). 61% of the company’s net come was generated in the fourth quarter of 2006: a key reason was a 15% increase in local call tariffs since November 1. Now the SPF is considering the placement of a 5% or 10% stake UTEL shares on local stock exchanges.