Sistema Teleservices narrows loss in 2013

Reports a loss of Rs 2,694 cr for 2013, 9.65% lower than the loss of Rs 2,982 cr in 2012

Sistema Shyam Teleservices Ltd (SSTL), the CDMA-based telecom services under the MTS brand, has reported a loss of Rs 2,694.2 crore for 2013, 9.65 per cent lower than the loss of Rs 2,982.1 crore in 2012. During the quarter ended December 2013, the company narrowed its loss to Rs 445.5 crore from Rs 778.70 crore in the year-ago period.

“Net loss during the quarter fell 42.8 per cent year-on-year basis, mainly on account of forex gains and lower interest expenses,” said Chief Executive Officer Dmitry Shukov.

The company’s revenue for 2013 fell 24.2 per cent at Rs 1,227 crore, against Rs 1,619.2 crore in 2012, as the company had to shut operations in 13 circles.

Currently, it offers mobile services in nine circles — Delhi, Kolkata, Gujarat, Karnataka, Tamil Nadu, Kerala, Uttar Pradesh (West), West Bengal and Rajasthan. SSTL said data services accounted for 34.5 per cent of its revenue.

Of the data revenue, about three quarters came from dongles. During the quarter ended December 2013, the company’s mobile subscriber base increased 2.2 per cent quarter-on-quarter to 9.8 million. Operating loss before depreciation and amortisation fell 25 per cent to Rs 208.1 crore from Rs 278.6 crore in the year-ago period. “OIBDA (operating income before depreciation and amortisation) margins continued to improve for SSTL on the back of revenue growth and strict control over costs.