Astelit Sustains Losses Of USD 101 Million In 2010

The Astelit cellular mobile telephone company, which provides mobile telephone services under the life:) brand name, finished 2010 with losses of USD 101 million.

In 2010, the company’s net revenues in the hryvnia equivalent shrank by 3.36% or UAH 11.8 million, compared with 2009, to UAH 339.3 million.

EBITDA (earnings before interest, taxes, depreciation, and amortization) of the company made up USD 64.5 million in 2010.

Its capital expenditures (CAPEX) in 2010 made up of USD 66.5 million.

Oleksandr Barinov, CEO of Astelit, said the reduction in the revenues of the company accounted for closure of a non-profitable branch on transit of of international traffic and the lower rates of interconnect.

At the same time Barinov pointed to the EBITDA of the company for 2010, as EBITDA tripled over 2009. He assessed this as an achievement of the company’s management through a complex of measures on trimming expenses, including restructure of tariffs to cut the expenses for interconnect.

He said the company expects its financial indexes to grow in 2011 through realization of a strategy focusing on regional approach to its clients, effective management and development of data transmission services.

As Ukrainian News earlier reported, the Astelit finished the October-December period with USD 30.9 million in the red.

Astelit reported a loss of USD 111.8 million for the year 2009, when its net revenues reduced by USD 87.6 million or 19.9% to USD 351.1 million compared with 2008.

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