MTS Q2 revenue at Rs 291 crore, down 17 percent

Sistema Shyam TeleServices (SSTL), which operates its telecom services under the MTS brand in India has achieved consolidated quarterly revenues of Rs 291 crore, a drop of 17 percent quarter-on-quarter (q-o-q) due to reduction in footprint.

However, revenues in 9 operational circles grew by 2.4 percent q-o-q. Consolidated OIBDA loss for the quarter stands at Rs 219 crore whereas qarterly OIBDA margins decreased by 15 percentage points. SSTL’s net income during the quarter declined by 31 percent q-o-q. The Net Income declined mainly on account of forex losses and exit costs.

The company has done prety well on data as non voice revenues contribute 34.4 percent of total quarterly revenues. SSTL’s HSD (high speed data services) now cover over 450 towns across 9 circles.

In the 9 operational circles, data card subscriber base fell by 1.7 percent on account of clean up of subscriber base. However SSTL’s active subscriber base continues to grow. The company’s data card subscriber base for the quarter declined by 26 percent to 1.16 million subscribers due reduction of footprint.

SSTL has rolled out CDMA EV-DO Rev B Phase II network in four more cities in Rajasthan i.e. Bhiwadi, Jodhpur, Kota and Udaipur.

According to Dmitry Shukov, chief executive officer, Sistema Shyam Teleservices, “SSTL during the quarter focused on further optimizing its operations after the finalization of its 9 circle footprint in March, 2013. We continue to invest in our business to further strengthen our data offerings. On the regulatory front, while 100 percent FDI in telecom is a welcome move, however a lot more needs to be done to bring further investments in the sector. We are hopeful that the government will do its best to bring back investor confidence.”

In the reporting period, SSTL’s mobile subscriber base declined by 19 percent quarter-on-quarter and reached 9.8 million customers as of June 30th, 2013. SSTL’s mobile subscribers’ MoU for Q2, 2013 improved to 328 min versus 295 min in Q1, 2013.

The company made investments to the tune of Rs 15.4 crore during Q2, 2013. Debt from banks and financial institutions at the end of 30th June 2013 stands at Rs 4,187 crore.

Sergey Savchenko, Chief Financial Officer of Sistema Shyam Teleservices commented, “In Q2 2013, SSTL continued its efforts to optimize costs and exercise strict control over expenditures. Going forward, the challenge is to bring the Company back on its high growth path by efficiently investing in the business.”

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One Comment

  1. Of course MTS will go down to drain if they do not improve their customer service and appellate services. They are really pathetic and never listens to client’s concerns and help fix them. I am one of the affected customer too and will soon disconnect their service due to their pathetic customer service.

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