SSTL books INR11.8bn net loss

13 Sep 2012

Russian-backed cellco Sistema Shyam TeleServices (SSTL), which operates under the MTS India brand, has reported that net losses widened by 79% year-on-year to INR11.80 billion (USD213.64 million) for the three months to end-June 2012, from a net loss of INR6.58 billion in the corresponding period of 2011. Total revenues for the beleaguered cellco in the second quarter of 2012 were INR4.18 billion, a 50% rise y-o-y driven largely by subscriber additions. Since the cancellation of SSTL’s operating licences in February this year the cellco has focused on controlling its expenses and retaining customers, as a result of the policy change, and the greater turnover, SSTL improved its OIBDA margin from 147% in Q2 2011 to 108% in the period under review. Chief financial officer Sergey Savchenko added: ‘Given the continued uncertainties around the operating environment, SSTL is currently focused on retaining its customers and controlling its expenses to optimize cash.’ The cellco noted that at the end of June 2012, CAPEX investments in India stood at INR65.35 billion, whilst accumulated losses were INR96.06 billion at that date.

India, Sistema Shyam TeleServices (SSTL, MTS India)