Sistema Shyam TeleServices Ltd. Announces Unaudited Financial Results for the Third Quarter Ended September 30, 2015
Gurgaon, India, 25th Nov 2015 – 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 third quarter ended September 30th, 2015.
Key Financial & Operational Highlights for the Third Quarter 2015
- Consolidated revenues increased by 10% Y-o-Y to INR 3,763 million (USD 59.2 million), mainly on account of data revenue growth.
- Blended mobile ARPU for the quarter increased by 2.7% to INR 137 (USD 2.2) on account of increase in growth in price per Mb because of changes done in product mix.
- Non-Voice revenues continue demonstrating strong growth and increased by 5.4% during the quarter.
- OIBDA loss reduced by 18% Q-o-Q to INR 443 million (USD 6.97 million).
- Success of SSTL’s data strategy is evident with non-voice revenues now contributing 58% of total quarterly revenues, highest in the industry. The contribution of Non-voice revenues increased by 270bps during the quarter.
- SSTL’s HSD services now cover over 1,250 towns across 9 circles.
- Consolidated OIBDA loss for the quarter stands at INR 443 million (USD 7 million). SSTL is now OIBDA positive in seven out of nine operating circles; Kerala being the latest circle to become OIBDA positive.
Beyond Q3, 2015
Sistema JSFC (parent company of SSTL) on 2nd November 2015 announced the signing of binding documents regarding the merger of SSTL’s telecom business with Reliance Communications (“RCOM”). The closing of the transaction, which is expected in the second quarter of 2016, is subject to a number of conditions, including obtaining approvals in accordance with SSTL and RCOM's corporate procedures and approvals by Indian regulatory and judicial authorities.
According to Sergey Savchenko, Chief Executive Officer of Sistema Shyam TeleServices Ltd, “Once again, SSTL’s operational parameters have shown improvement during the quarter leading to 10% growth in consolidated revenues. In-addition, the contribution of our non-voice revenues further increased to 58% of our quarterly revenues, the highest in the industry.” Commenting on the latest development, Sergey added, “The signing of a definitive agreement with RCOM to merge the telecom business of SSTL is a milestone event. The merger once completed, will strengthen the competitive position of the combined entity by fast tracking the growth of LTE technology in India.”