SSTL's net loss widens on currency fluctuations
11 September 2012
Sistema Shyam TeleServices Ltd (SSTL) has posted a net loss of Rs1,180 crore in its second quarter ended 30 June, impacted mainly by depreciation of the rupee against the dollar. The company, which provides CDMA services under the MTS brand, had posted a net loss of Rs657 crore in the same period a year ago.
The company's average revenue per user (ARPU), an indicator of a telecom company's financial health, declined by 2.3 per cent to Rs83. SSTL's average minutes of usage (MoU) per customer also declined to 281 minutes.
SSTL's revenues grew 50 per cent to Rs417 crore during the quarter, compared with Rs278 crore in second quarter last year.
The company's non-voice revenues rose by 3.9 per cent quarter-on-quarter to Rs148.4 crore, contributing 35 per cent to the total revenues of the company.
''Our data card subscriber base continues to grow in double digits despite recent tariff reduction by 3G operators,'' Rozanov added.
SSTL was among those whose licenses were cancelled by the Supreme Court in February. The company, whose licenses are valid till 18 January, 2013, has not yet made a decision to buy spectrum in the upcoming 2G auction.