SSTL posts revenue growth and smaller net loss

Russian-backed cellco Sistema Shyam Teleservices Ltd (SSTL, MTS India) has posted revenues of INR4.1 billion (USD74 million) for the quarter ending 31 March 2012, up 72% year-on-year, helped partly by a 57% increase in subscribers to 15.82 million. The company’s net loss fell to INR5.3 billion, down from INR6.6 billion in the corresponding period a year ago, and down from INR11.2 billion in the quarter ending 31 December 2011. SSTL is among the companies which have had their licences revoked by the Indian authorities; the companies are allowed to operate until August. ‘In spite of numerous legal and regulatory challenges being faced by the entire telecom industry, SSTL has delivered strong results. The company continued to stay true to its focus on driving operational efficiencies across all areas of its business. These efforts have resulted in significant improvement in EBITDA margins. Our non-voice revenues continued to grow in double digits. Non-voice revenues now contribute more that 35% of the total revenues of SSTL, which is amongst the highest in the industry,’ stated Vsevolod Rozanov, the president and CEO of SSTL.