MTS reports a net loss of Rs 760 crore in Q3
By insightVAS - Wed Nov 20, 7:12 pm
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The CDMA telecom operator, MTS, the brand owned by Sistema Shyam Teleservices Ltd. (SSTL) has announced its financial report for the third quarter that ended on September 30, 2013. The company has reported a net loss of Rs 760 crore in third quarter compared to net loss of Rs 495.5 crore for the same period of previous year.
“The Net Income declined mainly on account of forex losses and business restructuring,” SSTL’s Chief Executive Officer Dmitry Shukov said.
Revenue in Q3 2013 decreased by 30 percent year-on-year to Rs 2,844 million which was largely driven by closure of circles. Revenues in 9 operational circles remained flat Q-o-Q, due to seasonality. Consolidated revenues decreased by 2.2 percent Q-o-Q to Rs 2,844 million (USD 45 million) due to reduced operating footprint.
SSTL has operations in Delhi, Kolkata, Rajasthan, Gujarat, Karnataka, Tamil Nadu, Uttar Pradesh (West), Kerala and West Bengal.
Blended mobile ARPU for the quarter increased by 6.8 percent to RS 95 on account of increase in minutes of usage following improved quality of customer base.
Success of SSTL’s data strategy is evident with non-voice revenues contributing 34.5 percent of total quarterly revenues, the highest in the industry. The Company’s data card subscriber base for the quarter increased by 4.5 percent to 1.21 million subscribers.
SSTL was the first telecom operator in India to get Unified Telecom License. The license will enable the Company to provide technology neutral telecom services for a period of 20 years.
SSTL rolled out its 3GPLUS Telecom Network (EV-DO Rev.B Phase II) across all its circles of operations launches MBlaze Ultra dongle with speeds of upto 9.8Mbps.
Company also plans to launch a slew of Smartphones, enabling customers to further utilize the power of 3GPLUS network.
According to Dmitry Shukov, Chief Executive Officer of Sistema Shyam Teleservices Ltd, “During the quarter we continued to focus on optimizing our business in line with our medium term target to turn OIBDA positive by end of 2014. On the regulatory front, though 100 percent FDI in telecom is a welcome move, we expect the government to provide a clear roadmap for the auction of 800 Mhz spectrum. This is a must for proliferation of data services amongst the masses and also for restoring investor confidence.”
In the reporting period, SSTL’s mobile subscriber base declined by 1.8 percent quarter-on-quarter and reached 9.6 million customers as of September 30th, 2013. SSTL’s mobile subscribers’ MoU for Q3 2013 improved to 363 min vs. 328 min in Q2 2013. Non-voice revenues, from both data and mobile VAS, for the quarter declined by 2.2 percent to INR 979 million.
SSTL reported an OIBDA loss of Rs 2,197 million for Q3 2013, reflecting an improvement in OIBDA margin by 11 p.p. Y-o-Y, margins improved on account of cost optimization, strict control over marketing and other expenditures and also on account of Operational efficiencies.
Sergey Savchenko, Chief Financial Officer of Sistema Shyam Teleservices Ltd., commented, “In Q3 2013, our revenues during the quarter declined slightly due to seasonality, however operating parameters like ARPU, MoU continued to improve. Going forward, with the launch of our 3GPlus network, we expect the Company to come back to its high growth path.”
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