Uninor narrows operating loss to Rs 107 cr in Apr-Jun quarter
New Delhi: Norwegian telecom major Telenor’s Indian arm Uninor has narrowed its operating loss to Norwegian Krone 107 million (Rs 107.82 crore) for the second quarter ended June 30, 2013 aided by product optimisation and higher average revenue from subscribers.
The company had reported a net loss of NOK 619 million (Rs 623.09 crore) during the corresponding quarter last year.
The revenues of the company were down to NOK 728 million (Rs 733 crore) compared to NOK 1,034 million (Rs 1,041.10 crore) in the same period last year.
The company, which has achieved break-even in three of its operating circles, is aiming for a pan-India break-even by the end of 2013.
"With each quarter, Uninor is moving closer to its commitment of a pan-operations break-even - not through expensive tariffs but by keeping our promise of being Sabse Sasta - the most affordable in the market," Uninor CEO Yogesh Malik said in a statement.
He added, the company is expanding in the six circles through more network sites and sales outlets.
During the quarter, the number of subscriptions increased by 0.9 million in the quarter taking the total subscriber base to 24.5 million. Uninor follows January-December fiscal year.
In the second quarter of 2012, the comparable six-circle subscription base stood at 23.5 million, the company said in a statement.
The quality of the customer base improved, resulting in an increase of average revenue per user (ARPU) from Rs 94 in Q1 to Rs 97 in Q2. The monthly churn rate stood at 6 percent.
Uninor has presence in six circles- Maharashtra, Gujarat, UP East, UP West, Bihar (including Jharkhand) and Andhra Pradesh. The company last year won spectrum for Rs 4,018 crore to offer mobile phone services in these circles.
"Revenues in local currency in the six circles increased by 7 percent compared to second quarter last year despite negative development in Maharashtra following closure of neighbouring Mumbai circle earlier this year," it added.
The EBITDA loss improved to NOK 153 million mainly as a result of the revenue development and product optimisation positively impacting the gross margin, it added.