Millennium Post

Sistema Shyam lowers loss by 42% to Rs 438 cr

Sistema Shyam lowers loss by 42% to Rs 438 cr
Telecom operator Sistema Shyam TeleServices (SSTL), which operates under MTS brand name, reported narrowing of its net loss at Rs 437.9 crore in the three-month period ended 30 September, helped by reduction in forex loss. The company had reported a net loss of Rs 760.1 crore in the same period a year ago.

The revenue of the company increased by 20 per cent to Rs 342.7 crore during the reported period as compared to Rs 284.4 crore in the third quarter of 2013.

‘During the quarter, our non-voice revenues grew bay 14 per cent, thereby contributing 43 per cent of the total revenues. Our net income improved by 42 per cent mainly on account of significant reduction in forex loss,’ SSTL Chief Executive Officer Dmitry Shukov said here.

The company reported a forex loss of Rs 60.7 crore in the quarter as compared to Rs 206.8 crore in the corresponding period in 2013.

The company saw an increase of 14 per cent in non-voice revenue that includes mobile internet and other value added services at Rs 147.5 crore. ‘Success of SSTL's data strategy is evident with non-voice revenues contributing 43 per cent of total quarterly revenues, highest in the industry. 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,’ Shukov said.

He said that the company is unable to make its future investment plans due to lack of clarity on CDMA spectrum auction.

SSTL's data card subscriber base increased by 6.3 per cent to 15 lakh during the quarter.

The company's operating income before depreciation and amortisation — an indicator of cash flow, loss —reduced by 53 per cent year-on-year at Rs 103.7 crore from Rs 219.7 crore reported in third quarter of the previous fiscal.

‘Non voice revenue growth along with cost control has helped OIBDA margins to improve further during the quarter.’
PTI

PTI

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