MTS India’s non-voice revenues from data and mobile VAS chip in 36.7% to revenue of Rs 404 crore

Telecom Lead India: Sistema Shyam Teleservices (MTS India) said its non-voice revenues from data and mobile VAS for third quarter contributed 36.7 percent of total revenue.

Vsevolod Rozanov, president and CEO of SSTL

MTS India’s non-voice revenues from both data and mobile VAS in the third quarter were flat at Rs 148.2 crore.

The company claims that the contribution of non voice revenues to the total revenues is amongst the highest in the Indian telecom industry.

MTS India’s Q3 revenue declined 3.3 percent q-o-q to Rs 404 crore. Wireless (voice & data) subscriber base for the quarter grew by 0.2 percent to 16.60 million. Revenue growth was impacted due to the continued effect of TRAI changes in tariff structure leading to drop in Minutes of Usage (MoU) and Average Revenue Per User (ARPU).

Blended mobile ARPU for the quarter declined 6 percent to Rs 78.

Its net income during the quarter improved 58 percent q-o-q.

SSTL’s current focus is on – Retaining subscribers, controlling expenses to optimize cash outflow.

Its data business – HSD services now cover over 450 towns across India.

SSTL’s data card subscriber base for the quarter increased 5.9 percent to 1.83 million subscribers.

The subscriber growth slowed down due to strict control over sales and marketing expenditures,  aggressive tariffs and predatory practices launched by competition, all leading to churn of existing subscribers.

“The revenues declined for the first time since the start of the Company’s operations. The subscriber growth during the quarter also suffered on account of uncertainties in the operating environment and due to the predatory practices adopted by competition,” said Vsevolod Rozanov, president and CEO of SSTL.

SSTL’s mobile subscriber base increased 0.3 percent quarter-on-quarter to 16.64 million customers. Its mobile subscribers’ MoU for Q3 2012 declined to 263 min vs. 281 min in Q2 2012. Its subscriber market share increased to 1.83 percent in Q3 2012 (vs. 1.77 percent in Q2 2012).

The total revenues during the quarter grew 23 percent over Q3 2011. The revenue growth was driven by 25 percent increase in subscriber base over Q3 2011. By the end of Q3 2012, SSTL’s HSD services covers more than 450 towns in India. The number of data subscribers increased by 5.9 percent over Q2 2012 to 1.83 million.

The Capex investments made by SSTL in India at the end of 30th September 2012 stands at INR 65.5 billion, it includes investment of INR 158 million made during Q3 2012.

Accumulated losses of SSTL as at 30th September 2012 aggregated to INR 101 billion. Consolidated debt from banks and financial institutions at the end of 30th September 2012 stands at INR 80.64 billion.

Financial Summary

INR million Q3 ‘12 Q3’11 Y-o-Y Q2’12 Q-o-Q
Revenues 4,040 3,282 23 percent 4,177 -3 percent
OIBDA -3,541 -4,584 23 percent -4,509 21 percent
-margin -88 percent                 -140 percent 52p.p. -108 percent 20p.p.
Net Income -4,954 -10,097 51 percent -11,801 58 percent
-margin -123 percent -308 percent 185p.p. -282 percent 159p.p.



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