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SSTL reports net loss in Q3 to Rs 437.9 crore
TT Correspondent |  |  26 Nov 2014

Sistema Shyam TeleServices Ltd. (SSTL), which operates its telecom services under the MTS brand in India, on Tuesday announced its unaudited consolidated financial results for the third quarter ended September 30, 2014.
 
“During the quarter, our non-voice revenues grew by 14% thereby contributing 43% of the total revenues. The results have once again demonstrated the market acceptance of our world class 3G plus network. To further strengthen, the data story in India, it is imperative that the government comes out with a clear roadmap on spectrum sharing and trading. We are hopeful that as this happens, it would give a boost to broadband penetration in the country,” said Dmitry Shukov, Chief Executive Officer of Sistema Shyam Teleservices Ltd.
 
In the reporting period, SSTL’s mobile subscriber base remained flat quarter-on-quarter and reached 9.2 million customers as of September 30th, 2014. SSTL’s mobile subscribers’ MoU for Q3 2014 declined to 401 min vs. 416 min in Q2 2014, due to seasonality.  Non-voice revenues, from both data and mobile VAS, for the quarter increased by 14% to INR 1,475 million.
 
SSTL reported an OIBDA loss of INR 1,037 million for Q3 2014, OIBDA loss reduced by 53% Y-o-Y, OIBDA loss improved on account of increase in revenues, cost optimization, strict control over marketing and other expenditures and also on account of Operational efficiencies.
 
SSTL’s net loss during the quarter increased by 9% (Q-o-Q). In Q3’14 the Net loss increased mainly due to increase in forex losses. SSTL made investments of INR 360 million (USD 5.94 million) during Q3 2014. Debt from banks and financial institutions at the end of 30th September 2014 stands at INR 36.71 billion.
 
“Non voice revenue growth along with cost control has helped OIBDA margins to improve further during the quarter. The go forward plan includes, continuing with investments in operations to drive maximum value from our 3G Plus network,” said Sergey Savchenko, Chief Financial Officer of Sistema Shyam Teleservices Ltd.
 
                                     Financial Summary:

                               

Revenue in Q3 2014 increased by 20% year-on-year to INR 3,427 million, the improvement is driven largely by increase in data revenues.
 
Key Financial & Operational Highlights for the Third Quarter 2014

• Consolidated revenues increased by 20% Y-o-Y to INR 3,427 million (USD 56.5 million), mainly on account of data revenue growth.
• Blended mobile ARPU for the quarter increased by 2% to INR 117 (USD 1.93) on account of increase in data usage.
• Non-Voice revenues grew 14% during the quarter. The Company’s data card subscriber base for the quarter increased by 6.3% to 1.5 million subscribers.
• Success of SSTL’s data strategy is evident with non-voice revenues contributing 43% of total quarterly revenues, highest in the industry. The contribution of Non-voice revenues increased by 447bps during the quarter.
• Minutes of usage decreased by 3.7% to 401 during the quarter (Q-o-Q) due to seasonality.
• SSTL’s HSD services now cover over 700 towns across 9 circles.
• Consolidated OIBDA loss for the quarter stands at INR 1,037 million (USD 17.1 million).

    
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26 Nov 2014(IST)  
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