Sistema Shyam TeleServices (MTS India) revenue decreased 30 percent year-on-year to $52 million in the second quarter.
Closure of telecom circles impacted the revenue growth.
However, MTS India’s second quarter revenues in 9 operational circles grew 2.4 percent q-o-q. Its operational circles include Delhi, Kolkata, Rajasthan, Gujarat, Karnataka, Tamil Nadu, Kerala, Uttar Pradesh (West) & West Bengal.
SSTL’s mobile subscriber base declined 19 percent quarter-on-quarter and reached 9.8 million customers.
Non-voice revenues – both data and mobile VAS – declined 20 percent to INR 1,001 million. Non-voice revenues contribute 34.4 percent of total quarterly revenues.
SSTL reported an OIBDA loss of INR 2,193 million for Q2 2013.
“We continue to invest in our business to further strengthen our data offerings,” said Sistema Shyam Teleservices CEO Dmitry Shukov.
SSTL’s HSD services now cover over 450 towns across 9 circles, MTS India said on Monday.
MTS India says its net income dipped 31 percent q-o-q. The decline was mainly due to Forex losses and exit costs.
SSTL made investments of INR 154 million during Q2 2013.
The telecoms’ data card subscriber base for the quarter declined 26 percent to 1.16 million subscribers due reduction of footprint.
In the 9 operational circles, data card subscriber base fell by 1.7 percent on account of clean up of subscriber base.
Blended mobile ARPU increased 9 percent to INR 89 on account of elimination of impact of lower ARPU of exit circles.
Minutes of usage increased 11 percent to 328 during the quarter.
Consolidated OIBDA loss for the quarter stands at $39 million.
Sistema Shyam Teleservices CEO says 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.
MTS India Financial Summary:
|INR million||Q2 ‘13||Q2’12||Y-o-Y||Q1’13||Q-o-Q|
|Revenues||2,909||4,177||-30 percent||3,520||-17 percent|
|OIBDA||-2,193||-4,509||51 percent||-2,113||-4 percent|
|-margin||-75 percent||-108 percent||33p.p.||-60 percent||-15p.p.|
|Net Income||-8,447||-11,801||28 percent||-6,439||-31 percent|
|-margin||-290 percent||-282 percent||-8p.p.||-183 percent||-107p.p.|