MGTS announces plans for 2003

Moscow City Telephone Network (MGTS) is planning to increase its net income by one third to 1.42bn rubles (about $44.6m) in 2003, the company's authorities said at a news conference today. The expected growth in the amount of sales proceeds is 21 percent this year. The net cash flow is to surge by 460m rubles ($14.45m) to 4.47bn rubles ($140.4m).

MGTS is planning to direct major investments to the repair of its network and the development of new technologies this year. That is why the number of lines to be installed will be cut from 86,000 to 31,000. At the same time the volume of capital investments will not be decreased by more than 50m rubles ($1.57m) and will amount to 2.094bn rubles ($65.8m). The company is planning to cut by 10 percent the amount of resources spent on servicing and paying off debts to 4.52bn rubles ($142m).

MGTS is the main telecommunication operator in Moscow. Its main shareholders are Sistema (a 55.6 percent stake) and Svyazinvest (28 percent). The current capitalization of MGTS is about $626m.

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