Sistema Shyam TeleServices Ltd (SSTL), which operates mobile services under the MTS brand, on Monday reported net loss of Rs 1,009.7 crore for the third quarter ended September 30 on account of increased foreign exchange charges. The company had logged net loss of Rs 494 crore during July-September in 2010.
“SSTL's bottom line during the quarter was impacted by increased forex charges. The rupee has depreciated considerably against the US dollar and other foreign currencies thus resulting in increased forex charges on long-term foreign-currency-denominated loans,” the company said. SSTL is one of the players which got licences in 2008.
Net revenues were, however, up to Rs 328 crore compared to Rs 146 crore in the corresponding quarter last year. Non-voice revenues from data and mobile value-added services for the quarter were up by 32 per cent quarter-on-quarter to Rs 105 crore, which now contributes 32 per cent of total revenue. Blended mobile average revenue per user (ARPU) for the quarter increased to Rs 85 from Rs 82. The increase in ARPU is in contrast to a declining trend in the market.
Record subscribers
SSTL's data-card subscriber base for the quarter was up by 30 per cent to 1.07 million subscribers. SSTL added 0.25 million data-card subscribers during the quarter, highest additions in a quarter till date.
Mr Vsevolod Rozanov, President and Chief Executive Officer, SSTL, said, “The market response to our data-centric voice-enabled strategy continues to be extremely positive. In fact, Government's intent to increase broadband penetration in the country, as outlined in the Draft National Telecom Policy 2011 also supports our business strategy. However, we are awaiting further clarity on issues, such as additional spectrum availability. In spite of all these challenges, we are committed to further drive growth in data usage amongst the masses, with smartphones and tablets playing a major role in this process.”