Sistema Shyam Q3 loss widens

Says needs more spectrum in 800MHz band to upgrade

Sistema Shyam Teleservices, which operates under MTS brand in India, on Wednesday reported a third quarter net loss at Rs 760 crore, 53 per cent higher than a loss of Rs 495 crore posted in the corresponding quarter last year. “Net income declined mainly on account of forex losses and business restructuring,” said chief executive Dmitry Shukov. Revenue dropped about 30 per cent year-on-year to Rs 284 crore, from Rs 404 crore. “Revenue declined largely because of closure of circles,” he said. It operates in nine circles.

However, the company reported improvement in average revenue per user (ARPU), which rose seven per cent to Rs 95, compared with ARPU of Rs 89 during the previous quarter.

Data card subscriber base increased about four per cent.

“Going forward, with the launch of our 3G Plus network, we expect the company to come back to its high growth path,” Chief Financial Officer Sergey Savchenko said.

SSTL gets about 28 per cent of revenue from the data dongle business, while about 35 per cent of revenue comes from non-voice services.