Alfa Group Consortium Releases Its 2008 IFRS Financial Results
19 Nov 2009
Moscow, 19 November 2009 - Alfa Group Consortium today published its combined financial results for the year 2008. Full version of the financial statements as well as the Group’s 2008 annual report with summarized financial information is available on the Group’s website at: http://www.alfagroup.org/ and http://www.alfagroup.ru/.
IFRS profit (attributable to Equity Holders of the Parent Companies (i.e. majority shareholders)) for the year 2008 as reported in the Group’s Combined Financial Statements was US $2.19 bln, a 31% increase over the US $1.67 bln IFRS profit reported in 2007. 2008 profit of US $2.19 bln includes a number of one-off and accounting gains and losses recorded in 2008 included into this US $2.19 bln figure. The main one-off items are as follows:
- Change in the basis of accounting for investment in MegaFon as a result of the Group obtaining significant influence over MegaFon in mid-2008 resulting in a one-off, non-cash, accounting gain;
- Disposal by the Group of Golden Telecom to VimpelCom resulting in a one-off gain;
- Impairment of goodwill relating to the Group’s investment in X5 and impairment in the Group’s investment in MegaFon, resulting in one-off, non-cash, accounting losses.
Net of all one-off items, 2008 profit would have been a more modest US $1.59 bln.
The Group’s total assets rose 4% from US $49.7 bln at the end of 2007 to US $51.9 bln at the end of 2008 while shareholders’ equity (excluding non-controlling (minority) interests) declined by 20% from US $14.5 bln at the end of 2007 to US $11.6 bln at then end of 2008. The reason for the decline in shareholders’ equity was primarily due to exchange losses resulting from translating financial statement items from the Russian Rouble functional currency to the US Dollar presentation currency.
The Group did not pay a dividend to its majority shareholders in 2008.
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