Sistema Shyam TeleServices Ltd. (SSTL), which operates its telecom services under the MTS brand in India, today announces its unaudited consolidated financial results for the Second Quarter ended June 30, 2012.MTS done good recovery after cancellations of their license and increased subscriber base as well as revenues in last quarter.
Further strengthened its Smartphone Portfolio with the launch of MTS MTag 401 Smartphone,subscribers can now choose from an expanded portfolio of 8 smartphones with various free bundled data and set a new industry benchmark in India, by simplifying mobile tariffs and exciting CDMA MBlze data services.
According to report,SSTL’s total mobile subscriber(Voice & Data) base increased by 4.9% and reached 16.60 million customers as of June 30th, 2012 and Consolidated revenues up by 2.6% to INR 4,177 million.
Sergey Savchenko, Chief Financial Officer of Sistema Shyam Teleservices Ltd., commented, “Given the continued uncertainties around the operating environment, SSTL is currently focused on retaining its customers and controlling its expenses to optimize cash outflow. It is heartening to note that in such challenging times our customers, vendors and lending banks, have demonstrated true partnership by extending their full support. During the quarter, SSTL has successfully been able to raise INR 500 crores from banks.”
Company most revenues came from Non-voice service both data and mobile VAS for the quarter up by 3.9% to INR 1,484 million, which now contributes 35.5% of total revenue. The contribution of Non Voice Revenues to the Total Revenues is amongst the highest in the industry.
Data card subscribers increased by 11.8% to 1.73 million subscribers and SSTL added 0.18 million data card subscribers during the quarter.
The Total Revenues during the quarter grew 50% over Q2 2011.The revenue growth was driven by 41% increase in subscriber base over Q2 2011. By the end of Q2 2012, SSTL’s HSD services covers more than 420 towns in India.
According to Vsevolod Rozanov, President and Chief Executive Officer of Sistema Shyam Teleservices Ltd, “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. Our data card subscriber base continues to grow in double digits despite the recent tariff reduction by 3G operators. Going forward, the plan includes to continue our focus on driving operational efficiencies and to provide greater value to all our stakeholders.”