MTS India revenue dips 9%, users slip 8%, data card users decline 4% in first quarter

Sistema Shyam TeleServices (MTS India) today said revenue decreased 9.4 percent to INR 3,188 million, mobile users slipped 8 percent and data card users declined 4 percent in first quarter of 2014.

The decline in revenue was mainly due to the closure of telecom circles, while dip in users were on account of removal of inactive subscribers, MTS India said.

MTS India mobile subscriber base decreased 7.9 percent quarter-on-quarter to 9.04 million, while its Its data card subscriber base dipped 4 percent to 1.29 million subscribers.

Its mobile subscribers’ MoU for Q1 2014 improved 10.9 percent to 414 minutes against 373 minutes in Q4 2013.

Non-voice revenues — from both data and mobile VAS — increased 9.1 percent to INR 1,124 million.

At present, non-voice revenues are contributing 35.3 percent of total quarterly revenues. Contribution of non-voice revenues increased 87 bps during the quarter, said MTS India.

MTS India posted OIBDA loss of INR 975 million in Q1 2014.

The company posted net loss of INR 3,162 million in Q1 2014 against INR 6,439 million in Q1 2013. On quarter-on-quarter basis, MTS India reduced net loss by 29 percent, due to reversals of estimated provisions and lower interest expenses.

The company, which lowered its Capex due to closure of telecom circles, invested $8.92 million during Q1 2014.

MTS India CEO

MTS India said blended mobile ARPU increased 9.8 percent to INR 107 ($1.73) on account of increase in minutes of usage.

Dmitry Shukov, chief executive officer of Sistema Shyam Teleservices, said: “We launched aggressive data plans in the country to further supplement our 3G PLUS network. We expect strong momentum in data to continue.”

The company is betting on the auction of 800MHz spectrum in future to go ahead with its expansion plans in the country. The company has been in the news for consolidation moves. However, its small CDMA presence in India is not a huge attraction to key telecom players.

TelecomLead News Team