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SSTL posts Q2 net loss of Rs 657.6 cr, revenue up 164%

Last Updated: Wednesday, September 7, 2011 - 14:53

New Delhi: Sistema Shyam TeleServices Ltd (SSTL), which operates telecom services under the MTS brand, today reported a net loss of Rs 657.6 crore for the second quarter ended June 30, 2011.
The company had posted a net loss of Rs 661.3 crore for the same quarter of the previous fiscal, SSTL said in a statement.
SSTL's revenues rose to Rs 278.2 crore in the April-June quarter of FY'12, up 164 percent from Rs 105.5 crore in the same quarter last fiscal.
The company said overall revenues have continuously grown by over Rs 40 crore per quarter over the last four quarters.
"In spite of the continued challenges faced by the telecom industry in India, SSTL is on track to successfully execute its data-centric, voice-enabled strategy," SSTL President and Chief Executive Officer Vsevolod Rozanov said.
Non-voice revenues from both data and mobile value-added services for the quarter were up 36 percent quarter-on-quarter at Rs 79.69 crore, contributing 29 percent of the company's total revenue.
Blended mobile average revenue per user (ARPU) for the last three quarters remained consistent at Rs 82, the company said.
SSTL's data card subscriber base for the quarter rose by 40 percent to 820,000 subscribers. SSTL added 236,000 data card subscribers during the quarter, the highest number of additions it has registered in a single quarter till date, the company said.
Mobile subscribers' minutes of usage (MoU) declined to 295 minutes in Q2, 2011, from 305 minutes in Q1, 2011. The decline in the MoU was mainly because of the reduced quantity of free on-net minutes offered by the company to its subscribers.
SSTL's mobile subscriber base stood at 11.7 million customers as of June 30, 2011. By the end of the second quarter of FY'12, SSTL had expanded its high-speed mobile data services to more than 200 cities in India, including all five metros. The number of data subscribers increased by 40 percent vis-a-vis Q1, 2011, to 820,000.
"Our revenue growth continues to be faster than our growth in wireless subscribers. In the current quarter, our blended mobile ARPU remained consistent, as against a declining trend in the market. This is a strong reflection of our continued efforts to target quality customers," SSTL Chief Financial Officer Sergey Savchenko said.
The capital expenditure made by SSTL in India by the end of Q2, 2011, stood at Rs 6,080 crore, including an investment of Rs 252.7 crore during Q2, 2011.
The company's consolidated debt liability at the end of Q2, 2011, stood at Rs 5,736.7 crore.


First Published: Wednesday, September 7, 2011 - 14:53
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