The holding company Svyazinvest had a net profit of RUR 23.067 billion in 2009 in accordance with International Financial Reporting Standards. The profit was 5.46 percent less than in 2008.

The company’s revenue increased 2.05 percent to RUR 269.4 billion. The operating profit was up 16.8 percent to RUR 47.88 billion. Profits before taxes decreased 9.8 percent to RUR 30.09 billion.

The company also saw a reduction in its debt, from RUR 145.2 billion to RUR 118.3 billion. Long-range obligations of Svyazinvest decreased from RUR 79.94 billion to RUR 67.6 billion. Short-term obligations decreased to RUR 50.767 billion from RUR 65.27 billion. The company’s liquid assets available for immediate withdrawal went down from RUR 20.83 billion to RUR 14.36 billion.

Svyazinvest’s investments in 2009 were RUR 32.5 billion, only 50 percent of the 2008 amount. Capital expenditures for the acquisition of equipment were RUR 18.8 billion. RUR 9.9 billion was earmarked for construction activities. The subsidiaries of Svyazinvest underwrote most of the capex program. Thus, 96.2 percent of the total outlays, or RUR 31.3 billion, came from these affiliated entities. The company reported that RUR 24.9 billion in capital expenditures went to revenue-generating projects.

Among the positive developments for the company is the increase in the number of broadband Internet subscribers. The subscriber base increased by 41 percent to 5.3 million.

Broadband service currently accounts for 17 percent of the company’s revenue, up from 14 percent in 2008.

Svyazinvest has stakes in Rostelecom, as well as regional telecom companies, such as CenterTelecom, North-West Telecom, VolgaTelecom, Southern Telecom, Uralsvyazinform, Sibirtelecom, and Dalsvyaz. Other entities affiliated with the company, include Central Telegraph, Giprosvyaz, Dagsvyazinform, and the Svyaz finance company.

The company is presently going through a restructuring program, the main goal of which would be the integration of interregional telecom companies into Rostelecom.

Rosimushchestvo, a state-controlled entity, owns 75 percent minus one share of Svyazinvest. Comstar-UTS owns a blocking stake.