SSTL Reports Narrowing of Q3 Loss to Rs. 406 Crores

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SSTL Reports Narrowing of Q3 Loss to Rs. 406 Crores
Telecom operator Sistema Shyam TeleServices, which operates under MTS brand name, Wednesday reported narrowing of its net loss to Rs. 406.3 crore for the third quarter ended September 30, 2015.

The company, which is in process of merging with Reliance Communications, posted a net loss of Rs. 437.9 crore in the same period a year ago.

The operating loss of SSTL significantly reduced to Rs. 44.3 crore during the reported quarter compared to Rs. 103.7 crore it registered in corresponding three month period a year ago.

"SSTL is now OIBDA positive in seven out of nine operating circles; Kerala being the latest circle to become OIBDA positive," SSTL Chief Operating Officer Sergey Savchenko said in a statement.

The revenue of SSTL increased by about 10 percent to Rs. 376.3 crore from Rs. 342.7 crore during the period under review.

"SSTL's operational parameters have shown an improvement during the quarter leading to 10 percent growth in consolidated revenues. In addition, the contribution of our non-voice revenues further increased to 58 percent of our quarterly revenues, the highest in the industry," Savchenko said.

Non-voice revenues, from both data and mobile VAS, for the quarter increased by 5.4 percent compared to previous quarter to Rs. 2,18.3 crore.

"The contribution of our non-voice revenues further increased to 58 per cent of our quarterly revenues, the highest in the industry," Savchenko said.

SSTL offers high speed data services in 1,250 towns across 9 circles where it operates. Debt on the company from banks and financial institutions at the end of September 2015 stood at Rs. 4535 crore.

Sistema JSFC (parent company of SSTL) on November 2 announced the signing of binding documents regarding the merger of SSTL's telecom business with RCom.

The closing of the transaction is expected in the second quarter of 2016 subject to regulatory approvals.

"The signing of a definitive agreement with RCom to merge the telecom business of SSTL is a milestone event. The merger once completed, will strengthen the competitive position of the combined entity by fast tracking the growth of LTE technology in India," Savchenko said.

In the reporting period, SSTL's mobile subscriber base slightly declined quarter-on-quarter and reached 8.4 million customers as of September 30, 2015.

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