Sistema Shyam TeleServices Announces Unaudited Q1 Financial Results
OREANDA-NEWS. Sistema Shyam TeleServices Ltd. (SSTL), which operates its telecom services under the MTS brand in India, today announces its unaudited consolidated financial results for the first quarter ended March 31, 2013.
Corporate Highlights for the quarter
- Close down operations in 10 circles in February 2013 and further 3 circles in March 2013 following the Company's participation in the spectrum auctions.
- In the spectrum auctions on 11th March, the Company won technologically neutral licences in 800 MHz band spectrum in 8 circles. Together with Rajasthan, which was not affected by the Honorable Supreme Court of India's order, the Company's foot print now includes 3 carrier slots of 1.25Mhz each in 9 circles.
Key Financial & Operational Highlights for the First Quarter of 2013
- SSTL's focus during the quarter was on retaining subscribers, controlling expenses and participating in spectrum auctions.
- Consolidated revenues down by 10% Q-o-Q to INR 3,520 million (USD 65 million).
- Non Voice revenues now contribute 35.7% of total quarterly revenues, the highest in the industry.
- Blended mobileARPU for the quarter increased by 2.5%to INR 81.
- Minutes of usage increased by 10% to 295 during the quarter (Q-o-Q).
- SSTL's data card subscriber base for the quarter declined by 12% to 1.56 million subscribers. In the nine operational circles the data card subscriber based fell by 1%, mainly on account of new subscriber acquisition policy.
- The Company recorded lowest quarterly OIBDA loss in the last three years. Consolidated OIBDA loss for the quarter stands at INR 2,113 million (USD 39 million). Quarterly OIBDA margins improved 11 p.p.
Post Period End Highlights
- Dmitry Shukov to take over leadership from Vsevolod Rozanov, the current President and CEO of SSTL. The leadership change is expected to come into effect after completion of all the relevant corporate procedures from 1 June 2013
According to Vsevolod Rozanov, President and Chief Executive Officer of Sistema Shyam Teleservices Ltd "The operating environment for SSTL finally became stable by the end of Q1 2013, with the company participating in auctions and winning spectrum in 8 circles. The key focus now is to drive growth across all business lines in a profitable and sustainable manner, in sync with company's data centric voice enabled strategy. The game plan includes to stay "a step ahead" and to further strengthen the brand MTS' connection with all its stakeholders, including customers, retailers and employees."