Russia's Southern Telecom (UTK) (UTEL.MM: Quote, Profile, Research, Stock Buzz) said on Thursday net profit for the first half of 2008 rose 12.9 percent year-on-year to 813 million roubles ($32.43 million), but core earnings were down 2.5 percent.

UTK, the leading fixed-line operator in the south of Russia, said in a statement earnings before interest, tax, depreciation and amortization (EBITDA) fell to 3.68 billion roubles from 3.77 billion roubles in the same period of 2007.

EBITDA margin fell to 35.2 percent from 38.4 percent.

Revenue increased 6.4 percent to 10.45 billion roubles due mainly to expansion of the company's broadband user base as well as growth of local telephone calls services.

Expenses rose 12.7 percent to 8.98 billion roubles, of which wage costs amounted to 3.26 billion roubles, up 14.6 percent.

UTK is controlled by national telecoms holding company Svyazinvest. The results are unaudited and prepared according to International Financial Reporting Standards.

Source:Reuters