Sistema Shyam TeleServices Ltd. Announces Unaudited Financial Results for the First Quarter Ended March 31, 2015

Gurgaon, India, June 2, 2015: Sistema Shyam TeleServices Ltd. (SSTL), which operates its telecom services under the MTS brand in India, today announces its unaudited consolidated financial results for the first quarter ended March 31st, 2015.

Key Financial & Operational Highlights for the First Quarter 2015

  • Consolidated revenues increased by 12% Y-o-Y to INR 3,578 million (USD 57.49 million), mainly on account of data revenue growth.
  • Blended mobile ARPU for the quarter increased by 4.2% to INR 127 (USD 2) on account of increase in data usage.
  • Non-Voice revenues continue demonstrating double-digit growth and increased by 11.1% during the quarter. The Company’s data card subscriber base for the quarter was up 9.4% to 1.8 million subscribers.
  • Success of SSTL’s data strategy is evident with non-voice revenues now contributing 51.1% of total quarterly revenues, highest in the industry. The contribution of Non-voice revenues increased by 421bps during the quarter.
  • SSTL’s HSD services now cover over 850 towns across 9 circles.
  • Consolidated OIBDA loss for the quarter stands at INR 1,297 million (USD 20.8 million).

According to Dmitry Shukov, Chief Executive Officer of Sistema Shyam Teleservices Ltd, “Our non voice revenues continued to show strong growth during the quarter. It now contributes 51% of the total quarterly revenues, the highest in the Industry. The growth in our data revenues was driven by increase in our data subscriber base and continued expansion of our HSD footprint across our 9 circles. Consolidation within the Indian telecom sector is bound to happen. The key catalysts now are the spectrum sharing and trading guidelines, which are expected to be issued by the Government. One hopes that clarity on such regulatory issues is received at the earliest.”

Financial Summary:

INR Million Q1-2015 Q1-2014 Y-o-Y Q4-2014 Q-o-Q
Revenue 3,578 3,188 12% 3,508 2%
OIBDA -1,297 -975 -33% -1,567 17%
Margins -36% -31% -5 p.p. -45% 9 p.p.
Net Income -3,910 -3,162 -24% -4,814 18.8%
margins -109% -99% -10 p.p. -137% 28 p.p.

Revenue in Q1 2015 increased by 12% year-on-year to INR 3,578 million, the improvement is driven largely by increase in data revenues.

In the reporting period, SSTL’s mobile subscriber base slightly declined quarter-on-quarter and reached 8.9 million customers as of March 31st, 2015. Non-voice revenues, from both data and mobile VAS, for the quarter increased by 11.1% to INR 1,827 million.

Sergey Savchenko, Chief Financial Officer of Sistema Shyam Teleservices Ltd., commented, “The improvement in OIBDA during the quarter has been on account of optimization of sales & marketing expenditure, increase in data revenues and reduction in interconnect charge. Going forward, SSTL will continue its efforts to further optimize expenses to achieve breakeven.”

© Technuter.com News Service

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