Vedomosti (Moscow) - June 6, 2004

RosBusinessConsulting - Troika Dialog

Troika Dialog has given a "buy" recommendation for the common shares in RBC Information Systems, having set a fair price at $2.65. Analysts of Troika Dialog remark that RBC is the only company that has a TV channel, a news agency and a business in the sector of computer technologies. Companies producing only raw materials have long been prevalent in the Russian economy, and hi-tech companies have a great potential for growth. Troika Dialog's analysts expect RBC's sales volume to grow to $206.5m by 2009, compared to $48.5m in 2003, and the company's net profit is to increase from $3.7m to $59.4m. Ivan Karachinsky, an analyst for the Zenit bank, remarked that the main project for RBC was RBC TV. "After RBC releases data on the TV channel's advertising revenues, one will be able to give a forecast with regard to the efficiency of RBC in general", Karachinsky pointed out. The Zenit bank is revising its recommendation and a fair price for these shares. Andrey Bogdanov, the chief of the Analytical Department of Alfa-Bank, remarked that RBC was one of the most dynamic Russian companies. This is the only company in the media and IT sectors whose shares are offered on the stock market. Bogdanov remarked that the project of the first Russian business television channel RBC TV involved high risks, but it had no competitors in Russia. Alfa-Bank's recommendation for these securities is "hold," and the fair price is $2.5. The price of RBC shares on the RTS exchange was $1.96-2 yesterday.