SSTL posts net loss of Rs 1,180 crore in the April-June 2012

Reports 50% increase in revenue during the quarter at Rs 417.7 crore against Rs 278.2 crore in the same period year ago

Sistema Shyam Teleservices (SSTL), which operates telecom services under the MTS brand, today reported a 79% increase in its net losses at Rs 1,180 crore for the second quarter ended June 30, 2012, compared with Rs 657 crore in the corresponding period last year.The company has attributed the dip in net profit to the forex losses it had suffered during the quarter.

However, driven by the growth in the voice and data subscribers, the company's revenues grew 50% to Rs 417 crore during the quarter compared with Rs 278 crore in second quarter last year. Total wireless (Voice & Data) subscriber base for the quarter grew by 4.9% to 16.60 million. The number of data subscribers increased by 11.8% over Q1 2012 to 1.73 million.

 

Revenues from the non-voice services including data and mobile value added services for the quarter increased by 3.9%  to Rs 1,48.4 crore. The non-voice revenue now contributes 35.5% towards the  overall revenue.However, the average revenue per users for the mobile services for the quarter declined by 2.3% to Rs 83.

"The recent regulatory and tax developments have significantly impacted the growth of the Indian telecom industry. Despite these challenges, SSTL has maintained its scale of operations and has also grown its business by further strengthening all its revenue lines,” Vsevolod Rozanov, President and Chief Executive Officer, SSTL said.