AS EESTI TELEKOM

ANNOUNCEMENT

01.04.99 

 

COMMENTARY ON ESTONIAN MOBILE TELEPHONE COMPANY CONSOLIDATED 

(IAS) FINANCIAL RESULTS FOR 1998

 

 

Estonian Mobile Telephone Company Group consists of the parent 

company and two 100%-owned subsidiaries: Esmofon Ltd and Tarvin 

Ltd. Esmofon Ltd, 100% owned by EMT since February 1998, a 

mobile phone equipment importer and retailer, is also the major 

seller of EMT subscriptions. Field of activities of Tarvin Ltd 

is administration of a real estate where Esmofon Ltd has one of 

its many sale-offices. Impact of Tarvin Ltd on financial 

results of the group is insignificant. Net sales of Esmofon Ltd 

in 1998 amounted to 115,5 million kroons. Net sales of in 1997 

amounted to 73,5 million kroons. Aforementioned financial 

results of Esmofon Ltd are based on accounts prepared in 

accordance with the Estonian Accounting Standards.

 

In accordance with the International Accounting Standards 

(IAS), net sales of EMT Group in 1998 amounted to 1 361,6 

million kroons with annual growth by 54,4%. Operating revenue 

amounted to 14,8 million kroons, growth by 33,3%.

 

Main factor of the growth in sales was increase in number of 

customers from 102,2 thousand in 1997 to 151,5 thousand by the 

end of 1998. 

 

Operating expenses of the group had approximately the same 

growth rate growing from 554,2 million kroons to 877,7 million 

kroons or by 58,4%, including depreciation growth from 120,8 

million kroons to 170,3 million kroons or by 41%.

 

Financial expenses were exceeded by financial income in amount 

of 6,8 million kroons by 1 million kroons (in 1997, financial 

expenses in amount of 5,5 million EEK exceeded income by 2,7 

million kroons).

 

Consolidated profit before taxes of 1998 was 499,7 million 

kroons having 48,8% annual growth. Net profit of the year was 

390,2 million kroons growing by 151,1 million kroons.

 

Consolidated assets of EMT Group totalled 1 036,0 million 

kroons by the end of the year having annual growth by 25%.

 

 

Raul Kalev

PR Manager

Eesti Telekom

Tel. +372 646 0220, +372 507 7797

 

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