* Shareholders' net income up 63 percent to $48.8 million
* Revenue up 13 percent to $411 million
MOSCOW, Aug 25 (Reuters) - Russian fixed line operator Comstar on Wednesday reported a 63 percent rise in second quarter net income thanks to lower debt financing costs and a pick up in revenues as Russia recovers from recession.
Comstar, which is being taken over by mobile operator MTS , said in a statement that adjusted net income attributable to shareholders rose to $48.8 million from $30 million in the year-ago period.
The improvement is partly due to a reduction in the interest rate on Comstar's 26.6 billion rouble ($861 million) debt to Sberbank to 10.5 percent from 13.35 percent, Comstar spokeswoman Ekaterina Nevskaya told Reuters.
Revenue rose 13 percent to $411.1 million, boosted by new internet subscribers, while operating income before depreciation and amortisation (OIBDA) rose 10 percent to $164.5 million.
The results "came in line with consensus on revenues and OIBDA and marginally below expectations in net income," Victor Klimovich, analyst at VTB Capital, said in a research note.
"In general, we view these results as a confirmation of the long-term growth story of Comstar UTS's broadband internet business as a part of MTS Group."
MTS is due to report on Thursday, with second quarter net seen down 40 percent to $344 million.
By 1027 GMT, shares in Comstar were up 0.6 percent in Moscow, while the broad MICEX index was flat. ($1=30.9 ROUBLE) (Reporting by Maria Plis; Writing by Toni Vorobyova; Editing by Louise Heavens)