Sistema India phone unit Q2 loss narrows

 Russian conglomerate Sistema's Indian mobile phone services unit reported a smaller quarterly loss as it scaled back operations due to a court order.

Sistema Shyam TeleServices posted a net loss of Rs 845 crore for the three months to June, compared with a net loss of Rs 1180 crore  a year earlier. Revenue for the second quarter fell 30%  from a year earlier to Rs 291 crore.

Sistema Shyam TeleServices Ltd currently operates in nine of India's 22 telecommunications zones after all but one of its zonal permits were among those ordered to be revoked by a court after a licensing scandal.

 

The company won back airwaves in eight of the affected zones for about $570 million in an auction in March, exiting the remaining 13. Sistema said earlier this year it would hold back on major investment in the Indian mobile unit over the next three years to concentrate on making the operation profitable by mid-2015.