Comstar Sees Profits Jump in Q2

Comstar United Telesystems, billionaire Vladimir Yevtushenkov's telecoms company, said Thursday that second-quarter profit climbed 74 percent as demand for broadband surged.

Net income rose to $29.9 million from $17.2 million a year earlier, Comstar said, missing analysts' estimates.

"We have already now moved into the second phase of our broadband development strategy in Moscow after the significant market share gains," CEO Sergei Pridantsev said.

The company said it received a noncash gain of $3.2 million in the quarter from the revaluation of a put option, issued in part payment for the acquisition of 25 percent plus one share in telecoms holding Svyazinvest in December 2006.

Comstar said it had taken over management of sister company Sistema Mass Media's pay-television business, Stream-TV Group, and might buy it by the end of the year. (Bloomberg, Reuters)