Comstar expands into Ural Federal District

Related Companies

News for Spread Betters

PreviousPrevious
NextNext

There's a new Investor Edition of CMC Markets' spread betting platform... and it's exclusive to DigitalLook.com users...

Get full details about Marketmaker:Investor Edition here. Advertisement

Date: Monday 07 Jul 2008

LONDON (ShareCast) - Russian and CIS telecommunications operator Comstar – United TeleSystems has bought a leading telecoms company in the Ural Federal District.

Comstar is paying the equivalent of $43.4m in cash for CJSC Ural Telephone Company (UTC), a privately owned company which owns 800km of its own fibre-optic connection network.

UTC provides both local and zonal connection services, as well as broadband internet access for both residential and corporate customers.

Comstar said it expects the acquisition will enable it to significantly boost broadband revenues from residential customers in the Sverdlovsk region, where broadband take-up is relatively low at only 8%.

In 2007, UTC had earnings before interest, tax, depreciation and amortisation (EBITDA) of $4.7m, with an EBITDA margin of 23%.

Revenues grew 43% to $20.7m.

UTC’s net debt at the time of the acquisition was $5.1m.

“Ural Telephone Company will be focused on providing broadband internet access services and increasing sales in the highly profitable corporate segment,” said Viktor Koresh, vice-president for the development of the Group’s operations.

“The company also plans to launch IP-TV services and provide long-distance connection,” Koresh added.

Digital Look have been voted
"Best Research and Informataion Provider"

4th Floor, Bankside House, 107 Leadenhall Street, London EC3A 4AF.
Registered in England and Wales (registered no. 3678570).

A good trader doesn’t blame
his tools…especially ours

The Marketmaker:Investor Edition Trading Tool Kit worth

£765.00!*

Open a spread betting account with
Marketmaker:Investor Edition today and receive

(Or click here to continue with your normal research on Digital Look)

Please remember that spread betting is a leveraged product and carries a high level of risk to your capital. It is possible to incur losses that exceed your initial investment. This product may not be suitable for all investors, therefore ensure you fully understand the risks involved and seek independent advice if necessary.
Digial Look is an Appointed Representative of CMC Spreadbet plc.