Uninor's Q4 operating loss widens to Rs 276 crore

NEW DELHI: Telecom services provider Uninor’s operating losses widened to about Rs 276 crore in the fourth quarter ended December 31, 2014.

The company, fully owned by Norwegian telecom operator Telenor, had reported operating loss of about Rs 132 crore in the same period last year.

At the same time, it posted annual operating profit at about Rs 855 crore for the first time. The company posted a 38 per cent increase in revenue for year ended December 2014 on the back of a rise in internet subscriber base.

In the year, Uninor added 10.85 million new subscriptions in its six circles and the internet subscriber base rose by 106 percent over 2013. It claims to be number four in customer market share in circles of operation with nearly 11 per cent of subscribers.

The average revenue per user (ARPU) for the company has also gone up by six percent in the same period. The ARPU growth was driven by higher usage of Internet services and improved quality of its voice subscriber base, a statement said.

“With our ‘Sabse Sasta’ proposition and Internet for All strategy, we were able to achieve strong revenue growth in 2014. Our Internet subscriber base has gone up by 106% in 2014 over the previous year. Revenue from Internet services has also doubled in the same period,” said Vivek Sood, CEO, Uninor.

 In 2014, Uninor completed its largest ever network expansion in a single year. With the deployment of 5,000 additional network sites across its six circles, the network footprint of Uninor has gone up by around 30 per cent. The company now has more than 24,000 network sites deployed across its six circles with an ability to cover 50 million additional populations in these regions.

Uninor has also increased its retail and distribution footprint to go deeper and wider in its operational circles. The company now has over 350,000 point of sales and around 1500 branded retail outlets.

“This expansion is a reflection of our commitment towards providing enhanced quality of services to our customers. This year too we are confident of a similar growth trajectory both on voice and Internet. We will continue to make investments in the business to be able to stay relevant, improve our operations and grow profitably in the market,” said Sood.

 In the fourth quarter of 2014, Uninor added 2.3 million subscriptions, a 31 per cent over the same quarter last year. The revenue also increased by 26 per cent year on year.

 The company acquired a new circle -- Assam -- in 2014 auction along with additional spectrum in four of its existing circles.  The preparations are underway to launch the circle of Assam.