TGC-1 9M 2014 IFRS Revenue remained flat

Consolidated TGC-1 revenue for 9M 2014 decreased by 1.1% year-on-year, to 47,940 mn RUR remaining almost flat year-on-year on the back of decreased demand due to weaker electricity demand and warm weather in the reporting period.

Operating expenses for the 9 months of 2014 remained flat, growing by only 0.1% year-on-year, to 41,294 mn RUR. Variable costs were reduced by 1.8% to 26,212 mn RUR, fixed costs grew by 4.9% - to 10,847 mn RUR on the back of growing repairs and maintenance expenses and high basis effect of 1H 2013 on Provision/(Release) for Impairment of Accounts Receivable. Depreciation and amortization amounted to 5,049 mn RUR (+1.1%).

Because of the mentioned above factors, EBITDA amounted to 11,695 mn RUR (-4.5%), profit totaled mn RUR 3,913 (-7.2%).