Sistema Shyam Q3 revenue up 10% at Rs 376 cr

The operating loss of SSTL significantly reduced to Rs 44.3 c during the reported quarter as compared to Rs 103.7 cr a year ago

Sistema Shyam TeleServices Ltd. (SSTL), which operates under the MTS brand in India, saw revenue rise by 10% year-on-year to Rs 376 crore for the quarter ended September (third quarter for the company), led by higher data growth. Non-voice revenues continued to clock strong growth and increased by 5.4% during the quarter.

The company's focus on data has paid off what with its non-voice revenues now contributing 58% of total revenues, which is the highest in the industry. The contribution of non-voice revenues increased by 270 basis points during the quarter.

The company's blended mobile ARPU (average revenue per user) for the quarter increased by 2.7% to Rs 137 on account of price increases and change done in product mix. The operating loss of SSTL significantly reduced to Rs 44.3 crore during the reported quarter as compared to Rs 103.7 crore it registered in corresponding three month period a year ago.

Sistema JSFC (parent company of SSTL) on 2nd November 2015 announced the signing of binding documents regarding the merger of SSTL’s telecom business with Reliance Communications. The closing of the transaction, which is expected in the second quarter of 2016, is subject to a number of conditions, including obtaining approvals in accordance with SSTL and RCom's corporate procedures and approvals by Indian regulatory and judicial authorities.

Commenting on the quarterly performance, Sergey Savchenko, Chief Executive Officer of Sistema ShyamTeleServices, said: “Once again, SSTL’s operational parameters have shown improvement during the quarter leading to 10% growth in consolidated revenues. In-addition, the contribution of our non-voice revenues further increased to 58% of our quarterly revenues, the highest in the industry.”