Uninor informed investors that it is gaining market share in India. With a net subscriber growth of 4 million during the quarter ended 30th June 2011, the operator has 21.4 million subscribers in the Indian market. Telenor, the majority stake holes, feels that the outcome of the 2G scam investigations will not affect it negatively, since it had invested in line with Indian authority’s guidelines.
Last quarter, it had said that its operational focus was on distribution and cost efficiency. However, the 2G spectrum scam was a cause of worry for the company. In its last quarterly report, Telenor also informed investors about Unitech MD Sanjay Chandra and Unitech Wireless, being named in the CBI charge sheet. Uninor holds UAS licence to offer mobile services in the 22 telecom circles in India. It has rolled out in 21 circles and is commercially present in 13 circles.
Uninor reported revenues of NOK 698 million (approximately Rs. 565.2 crore) for the quarter ended June 30th 2011, a QoQ increase of 27%. The company’s revenue in the same quarter last year stood at NOK 103 million. It registered an EBITDA loss of NOK 965 million(Rs 781.5 crore) lower than previous quarter, mainly due to increased gross margin, and an operating loss of NOK 1206 million (Rs. 976.7 crore). The loss decreased compared to last year’s second quarter, when it was at NOK 1323 million, since the company has launched operations in five more circles, last year.
Uninor had begun offering services in December 2009. Telenor owns 67.25% in Uninor, while the Unitech Group owns 32.75%.
ARPU & CAPEX
Uninor has added 4 million subscriptions, compared to 5.2 million in the last quarter and its total subscriber base is at 21.4 million. The company’s ARPU was Rs 97 (12 NOK) for the quarter, almost stable compared to the last quarter. Total revenue in local currency increased 32% compared to the previous quarter on strong subscription growth and stable ARPU. The Capital expenditure was NOK 186 million (Rs 150.6 crore), related to the roll out of new sites in thirteen circles where Uninor has launched services.
2,323 new sites were deployed in the last quarter. Uninor has a total of 26,623 sites in the country.
Full Year Guidance
For the full year (2011) Uninor expects to contribute an EBITDA loss around NOK 4 billion and capital expenditure in the range of NOK 1.0 billion.
Telenor updated investors about the 2G scam investigation in India. It said: ” In India, Uninor and many other telecoms operators as well as the federal government through the Department of Telecommunications and the Telecom Regulatory Authority of India have been named as respondents in public interest petitions filed before the Supreme Court. These petitions seek cancellation of the licenses granted by the government in January 2008 to such operators, an imposition or punitive damages on grounds of alleged irregularities in granting the licences, failure to meet eligibility requirements and delays in meeting roll out obligations. The petitions were being heard by the Supreme Court since 1 March 2011 in day-to-day proceedings. On 2 April, the Indian Central Bureau of Investigation presented its first charge sheet, naming the managing director of Unitech Ltd., Mr. Sanjay Chandra, and also naming Unitech Wireless for actions when it was fully owned by Unitech Ltd., prior to Telenor Group entering India.”