Telecom Lead
India: Sistema Shyam TeleServices (MTS India) has improved its financial performance
in the first quarter of the current year. Noice-voice revenue contributes
around 35 percent to total revenue.
The mobile
operator has posted 3.8 percent q-o-q increase in consolidated revenues to INR
4,072 million ($81 million). The revenue growth was driven by 57 percent
increase in subscriber base over Q1 2011.
Telecom
infrastructure Capex for the quarter was INR 1,213 million.
The CAPEX
investments made by MTS in India at the end of 31st March 2012 stands at INR
64.74 billion.
SSTL
reported an OIBDA loss of INR 3,621 million for Q1 2012.
Accumulated
losses of MTS India as at 31st March 2012 aggregated to INR 84.25 billion.
Consolidated
debt from banks and financial institutions at the end of 31st March 2012 stands
at INR 82.85 billion.
Total
wireless subscriber base for the quarter grew 5.3 percent to 15.82 million.
Non-voice
revenues from both data and mobile VAS for the quarter are up by 11.5 percent q-o-q
to INR 1,429 million ($28.4 million).
MTS India
said non-voice revenues contribute 35.1 percent of total revenue and the
contribution has increased by 2.43 percent for the quarter.
MTS India
expanded its high speed mobile data services to more than 400 towns in India.
The number
of data subscribers increased by 15 percent over Q4 2011 to 1.54 million.
MTS India’s
mobile subscribers’ MoU for Q1 2012 improved to 296 min vs 288 min in Q4
2011.
Blended
mobile ARPU for the quarter declined 2.3 percent to INR 85.
MTS India’s
data card subscriber base for the quarter up by 15 percent to 1.54 million
subscribers. MTS added 0.21 million data card subscribers during the quarter.
Inspite of
numerous legal and regulatory challenges being faced by the entire telecom
industry, SSTL has delivered strong results. Our efforts have resulted in significant improvement in OIBDA
margins. Our Non Voice revenues continued to grow in double digits. Non Voice
revenues now contribute more that 35 percent of the total revenues of SSTL,
which is amongst the highest in the industry,” said Vsevolod Rozanov, president
and chief executive officer of Sistema Shyam Teleservices.
Financial
Summary
|
INR million |
Q1 -12 |
Q1’11 |
Y-o-Y |
Q4’11 |
Q-o-Q |
|
Revenues |
4,072 |
2,362 |
72 percent |
3,923 |
4 percent |
|
OIBDA |
-3,621 |
-4,552 |
20 percent |
-5,690 |
36 percent |
|
-margin |
-89 percent |
-193 percent |
104p.p. |
-145 percent |
56p.p. |
|
Net Income |
-5,278 |
-6,664 |
21 percent |
-11,977 |
56 percent |
|
-margin |
-130 percent |
-282 percent |
153p.p. |
-305 percent |
176p.p. |
With the
maturity of the business, SSTL has increased its focus to optimize its
expenditure and at the same time deliver on growth. In the current
environment one has to be sure about the balance between Revenue growth and the
cost optimization. The quarter also saw the shareholders approve an increase in
the Authorized Capital base to INR 12,000 Crore by including non convertible
and redeemable preference shares. This will strengthen SSTL’s Capital structure
and provide an opportunity to reduce cost of funding, including the added
flexibility to raise finances for its rapidly expanding business operations
across the country,” said Sergey Savchenko, chief financial officer of Sistema
Shyam Teleservices.