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Telecom operator Sistema Shyam TeleServices (SSTL), which operates under the MTS brand name, has reported a narrowing of its net loss at Rs 437.9 crore in the three-month period ended September 30, helped by a reduction in forex loss.
The company had reported a net loss of Rs 760.1 crore in the same period a year ago.
The company’s revenue 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 by 14 per cent, thereby contributing 43 per cent of the total revenues. Our net income improved by 42 per cent mainly on account of a 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.
“The success of SSTL’s data strategy is evident with non-voice revenues contributing 43 per cent of total quarterly revenues, the 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 the company was unable to make its future investment plans due to lack of clarity on the 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 the third quarter of the previous fiscal.
“Non-voice revenue growth along with cost control has helped OIBDA margins to improve further during the quarter. The go forward plan includes continuing with investments in operations to drive maximum value from our 3G Plus network,” SSTL acting Chief Financial Officer Vinay Mittal said.
SSTL’s mobile subscriber base during the reported period remained flat on a quarter-on-quarter basis and reached 92 lakh.
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