Continuing positive momentum: Golden Telecom reports results for the first quarter of 2003
28 Apr 2003
Here are some of the highlights for the first quarter 2003 vs. the first quarter 2002:
Consolidated revenues of $78.4 million - up 115%
Consolidated EBITDA1 of $27.6 million - up 144%
Consolidated operating income of $17.2 million - up 225%
Consolidated net income of $12.8 million - up 106%
Consolidated net cash flow from operations of $19.7 million - up 156%
Alexander Vinogradov, Chief Executive Officer and President of Golden Telecom, Inc.
commented: "We are pleased that our business continues to expand given that in Russia, the first
quarter has fewer working days than in the other quarters. The business environment in Russia
remains strong, in spite of the difficult global environment, and the growth in our customer base
reflects this strength. Both consumer and corporate sides of our business have done well, and our
annual revenue growth rate, excluding the impact of the Sovintel acquisition late last year, is just
under 20%. Company management continues to seek growth opportunities both inside and
outside the company, and we remain tightly focused on delivering value to our shareholders."
Stan Abbeloos, Chief Operating Officer of Golden Telecom, Inc. said: "We reported strong sales
results across all major product lines and market segments. A net gain of nearly 700 new
corporate customers was achieved during the first quarter and we signed a strategically important
contract with VimpelCom in St Petersburg. Thirteen new multi-tenant business centers were
signed up in the first quarter, and we had significant sales of numbering capacity to two Moscow
banks amounting to 2,000 new numbers. We also passed a major milestone in our dial-up internet
operation, adding our 250,000th subscriber in Russia."
David Stewart, Chief Financial Officer of Golden Telecom, Inc. noted: "Golden Telecom remains
on a firm financial footing. Our net cash flow provided by operating activities is strong, and we
have seen the cost benefits from the consolidation of Sovintel. These benefits are reflected in the
improvement in our EBITDA1 margin to 35% from 31% in the first quarter of 2002, and from
32% in the fourth quarter of 2002. We reiterate our guidance given in previous statements, that
we expect 2003 revenues to be in the region of $320-$340 million, 2003 EBITDA1 to be in the
region of $100-$120 million, and 2003 capital expenditures to be in the region of $55-65
million."
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