Hi-tech profits turn to losses

Sistema's hi-tech arm, Sitronics, has posted a fourth-quarter loss for 2007 of just over $US 46.1 million. For the same period in 2006 the company recorded a net profit of $US 24.3 million.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) totalled $US 15.3 million – down from $57.5 million from the previous year.

Sitronics is 60 per cent owned by Sistema. Sistema itself is the largest private-sector consumer services venture covering a whole range of businesses. It serves over 80 million customers in CIS and Europe.