“COMSTAR – United TeleSystems” JSC (“Comstar” or “the Company”) (LSE: CMST), the leading combined telecommunications operator in Russia and the CIS, today announced that its Board of Directors adopted the Comstar Group strategy on technology, finance and marketing.
Comstar is focusing on the technological development of the infrastructure in the regions, integration of the network of companies, development of broadband access technologies, increase in the capacity of its networks and creation of technical capabilities for fast introduction of its services.
The modernization of the transport level of data transmission network and ‘the last mile’ based on FTTH technology are Comstar’s technological priorities in Moscow.
The technological development of the regional network of companies will follow the Moscow network’s model and will allow Comstar to shorten networks rollout and reduce time required for the introduction of new services. Unified technological solutions and cooperation within the Group’s companies is essential for the efficiency gains within Comstar.
The introduction of a number of initiatives with respect to the financial strategy is expected to deliver the targeted growth, profitability and increased market presence through higher operational profitability, effective use of the investment portfolio as well as optimization of the Group’s ownership structure. Comstar’s financial goals in 2008 are focused on the introduction of management control systems for revenue assurance, separate cost accounting and project accounting for investments, as well as increased financial disclosure and reduced preparation time of the Group’s consolidated financial results.
Comstar’s marketing strategy is focused on increasing sales and market share in respective businesses, dynamic regional expansion in Russian regions and the CIS, including rebranding, increasing loyalty among broadband customers through improving quality of services and customer support as well as developing the brand further.
Sergey Pridantsev, President and Chief Executive Officer of Comstar UTS, commented: “The execution of adopted strategies is in line with the implementation of key strategic goals by Comstar UTS through 2011. The “Five attack points” strategy adopted by the Board of Directors in October 2007 is focused on: restructuring, development of broadband access business, development of MGTS, dynamic regional expansion and management of the Svyazinvest stake.”
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For further information, please visit www.comstar-uts.com
Comstar UTS is the leading fixed-line telecommunications company in Moscow, both in terms of revenues and subscribers. Comstar UTS provides voice, data, Internet, pay-TV and other value-added services to residential and corporate subscribers and operators, using its extensive backbone network and exclusive last mile access to 98% of Moscow households. The Company also offers communications services in five Russian regions and certain CIS countries. Comstar had 3.6 million residential subscribers in Moscow, 452,600 broadband internet subscribers in Moscow, 108,600 corporate subscribers in Moscow, and approximately 94,100 regional and international subscribers, as at September 30, 2007. Comstar UTS reported operating revenues of US$ 1,080 million and a 43% OIBDA margin for the nine months ended September 30, 2007. Comstar GDRs are listed under the symbol “CMST” on the London Stock Exchange.
Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Comstar UTS. You can identify forward looking statements by terms such as “expect,”“believe,” “anticipate,”“estimate,” “intend,”“will,” “could,”“may” or “might”, the negative of such terms or other similar expressions. Comstar UTS wishes to caution that these statements are only predictions, and that actual events or results may differ materially. Comstar UTS does not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in projections or forward-looking statements of Comstar UTS, including, among others, general economic conditions, the competitive environment, risks associated with operating in Russia, rapid technological and market change in the industries Comstar UTS operates in, as well as many other risks specifically related to Comstar UTS and its operations.
Contacts:
Masha Eliseeva
Tel: +7 985 997 0852
ir@comstar-uts.ru
or
Shared
Value Limited
Matthew Hooper
Tel. +44 (0) 20 7321 5010
comstar@sharedvalue.net
