SSTL posts 528 crore loss in Q1

NEW DELHI: Sistema Shyam TeleServices (SSTL) reported a net loss of Rs 527.8 crore in the first quarter of 2012 against Rs 666.4 crore for the same period last year. However, its revenue witnessed a growth of 72% to Rs 407.2 crore compared to Rs 236.2 crore in the corresponding period last year.

Non-voice revenue of the company, which accounts for 35% of total revenue, has risen 11.5%. The rise in revenue is despite a 2.3% decline in average revenue per user (Arpu). SSTL's mobile subscriber base saw a growth of 5.3% to 15.82 million by March 31, 2012. "Inspite 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," said Vsevolod Rozanov, president and CEO of SSTL.

SSTL, whose 21 licenses were cancelled by the Supreme Court in the 2G spectrum case, will have to bid afresh for licences in the upcoming re-auction in order to continue services beyond September 7, 2012.