Comstar's Q3 Earnings Increase 22%

Fixed-line telecoms operator Comstar reported a 22 percent year-on-year increase in third-quarter core earnings but said Friday that it would cut capital expenditures because of the financial crisis.

Comstar said its adjusted operating income before depreciation and amortization reached $184.8 million, higher than the average forecast of $163.6 million in a poll of analysts. Its OIBDA margin increased to 43.8 percent, compared with an expected 38.9 percent.

Comstar's London-traded shares rose more than 8 percent to $2.70 before dropping sharply to finish down 6 percent at $2.25.

"We have already reduced our projected 2008 capital expenditures to approximately $360 million, which is well below the level originally anticipated, and we will also not exceed this level in 2009," chief financial officer Irina Matveyeva said in a statement.