SSTL Q1 loss Rs 1,297 mn, revenue increases 12% Y-o-Y riding data

NEW DELHI: Sistema Shyam TeleServices  (SSTL), which operates its telecom services under the MTS brand in India, reported an OIBDA loss of Rs 1,297 million for Q1 2015, OIBDA loss reduced by 17% Q-o-Q for its unaudited consolidated financial results for the first quarter ended March 31, 2015.

SSTL’s net loss during the quarter decreased by 19% (Q-o-Q). In Q1 2015 the net loss decreased mainly due to optimization of sales and marketing expenses and forex gains. SSTL made investments of Rs 496 million (USD 8 million) during Q1 2015. Debt from banks and financial institutions at the end of March 31, 2015 stands at Rs 35.87 billion.

On the other hand, the company's consolidated revenues increased by 12% Y-o-Y to Rs 3,578 million (USD 57.49 million), mainly on account of data revenue growth.

Blended mobile ARPU for the quarter increased by 4.2% to Rs 127 (USD 2) on account of increase in data usage.

Plus, non-voice revenues continue demonstrating double-digit growth and increased by 11.1% during the quarter. The company’s data card subscriber base for the quarter was up 9.4% to 1.8 million subscribers.

Success of SSTL’s data strategy is evident with non-voice revenues now contributing 51.1% of total quarterly revenues, highest in the industry. The contribution of non-voice revenues increased by 421bps during the quarter.

Dmitry Shukov, CEO of Sistema Shyam Teleservices, said, “Consolidation within the Indian telecom sector is bound to happen. The key catalysts now are the spectrum sharing and trading guidelines, which are expected to be issued by the government. One hopes that clarity on such regulatory issues is received at the earliest.”

In the reporting period, SSTL’s mobile subscriber base slightly declined quarter-on-quarter and reached 8.9 million customers as of March 31, 2015. Non-voice revenues, from both data and mobile VAS, for the quarter increased by 11.1% to Rs 1,827 million.

The company's net loss during the quarter decreased by 19% (Q-o-Q). In Q1 2015 the net loss decreased mainly due to optimization of sales and marketing expenses and forex gains.

SSTL made investments of Rs 496 million (USD 8 million) during Q1 2015. Debt from banks and financial institutions at the end of March 31, 2015 stands at Rs 35.87 billion.

The company is providing services to  over 850 towns across 9 circles.