Sistema Shyam TeleServices Q3 net loss narrows to Rs 437.9 crore

NEW DELHI: Telecom operator Sistema Shyam TeleServices Limited (SSTL), which operates under brand name MTS, reported net loss for the September quarter narrowed to Rs.406.30 crore from Rs.437.90 crore for the third quarter ended September 30, 2014.

MTS, is the Indian subdivision of Russian Mobile TeleSystems telecommunication company.

Interestingly, the operator’s revenue for the quarter rose 10% to Rs 376.30 crore from Rs 342.70 crore a year ago.

The operating loss of SSTL significantly fell to Rs 44.3 crore as compared to a loss of Rs.103.70 crore a year ago.

Going ahead, the company has total debt of Rs.4,535 crore by end of September 30, 2015.

"SSTL is now OIBDA positive in seven out of its nine operating circles.The seven OIBDA positive circles are Delhi, Kolkata, West Bengal, Rajasthan, Karnataka, Tamil Nadu with kerala being the latest addition." the company said in a statement.

“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," said Sergey Savchenko, Chief Executive Officer of Sistema ShyamTeleServices Ltd.

Sistema JSFC (parent company of SSTL) on November 2 announced the signing of binding documents regarding the merger of SSTL's telecom business with Anil Ambani led-Reliance Communications (RCom). The closing of the transaction is expected in the second quarter of 2016.

“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,” he added.

With this, RCom  will acquire MTS approx. 9 million customers and approx. Rs. 1,500 crore of annual revenues by virtue of the transaction.

In addition, RCom will acquire SSTL’s most valuable and superior 800 / 850 MHz band spectrum, ideally suited for 4G LTE services, to complement its own unique nationwide footprint of minimum 5 MHz contiguous 800 / 850 MHz spectrum aggregating 148.75 MHz.