Gars Telecom’s new development strategy enables the company to double its growth, so that the company’s capitalization has practically reached $30 mln. By 2010 the company plans to occupy 20% and 15% of Moscow and St. Petersburg telecom markets for corporate clients, respectively.
Gars Telecom’s total revenue reached 411,901 thousand rubles (exchange rate: 23.51 rubles per $1; 17.03.08) in 2007, which is a 60.7% increase as compared to 2006 (249,942 thousand rubles).
The company’s revenue structure regarding the service ration has not changed significantly. The revenue from data transfer and internet provision grew by 6% amounting to 38% or 156,522 thousand rubles (80,731 thousand rubles in 2006) of Gars Telecom’s revenue in 2007. The company’s profit from telephone service provision decreased from 27% in 2006 (67,484 thousand rubles) to 23.7% or 97,621 thousand rubles in 2007.
38.3% of Gars Telecom’s revenue in 2007 fell on intellectual intensive services: telecom outsourcing, consulting and integration projects. As compared to the previous year, the group’s share decreased by 3%. However, in money terms the given business line is still leading: 57,050 thousand rubles (30.9%) in 2005, 101,726 thousand rubles (40,7%) in 2006 and 157,758 thousand rubles (38.3%) in 2007.
Over the accounting period the company has expanded its servicing area up to 1,553 thousand square meters. Gars Telecom is servicing 78 business centers in Moscow and St. Petersburg. “By 2010 Gars Telecom intends to occupy up to 20% and 15% of corporate telecom markets in Moscow and St. Petersburg, respectively, — says Ruslan Aliev, Gars Telecom’s CVO. — To meet the given challenge the company plans to invest about $15 mln into its business developmen”.
The history of Gars Telecom began in 1999, when the company launched its own data transmission network. By 2002, formation of the core infrastructure had been completed and the network management center was established at the Space Research Institute of the Russian Academy of Sciences. By 2004, the Gars Telecom’s network had been integrated into the global network of the parent company with points of presence in the Central and Eastern Europe, Asia and Africa. Based on terrestrial and satellite channels the network has nodes in Denmark, Romania, Turkey, Britain, Bangladesh and in all post-Soviet countries. During the last three years the Company has grown up by more than 1000%.