Sistema Shyam Teleservices (MTS India) has reported a consolidated revenue of Rs 404 crore for the third quarter of  2012. The company reported that the total wireless (Voice & Data) subscriber base for the quarter grew by 0.2% to 16.60 million.

SSTL’s data card subscriber base for the quarter was up by 5.9% to 1.83 million subscribers. SSTL added 0.10 million data card subscribers during the quarter. Non-voice revenues which include both data and VAS revenues for the quarter remained flat Q-o-Q at Rs 148.2 crore ($27 million). It should be noted that non-voice revenues now contributes 36.7% of total revenue. The contribution of non voice revenues to the total revenues is amongst the highest in the industry.

SSTL also raised Rs 480 crores from banks during the quarter. MTS did not participate in the 2G spectrum auction stating that TRAI had unfairly priced CDMA spectrum with the base price at 18,200 crore, about 1.3 times that of GSM base price. MTS was one of the 22 telcos whose licenses were revoked when the Indian Supreme Court cancelled 122 licenses in February 2012, giving its verdict in the 2G spectrum allocation scam case. MTS India had previously claimed that it will be discontinuing all its investments in its voice business until the spectrum auction commences in the country, and focus on its data services.

Need to know:

– Consolidated revenues down by 3.3% Q-o-Q to Rs 404 crore (USD 73 million). Total wireless(Voice & Data) subscriber base for the quarter grew by 0.2% to 16.6 million. The company claimed that revenue growth during the quarter was impacted due to the changes in tariff structure required by TRAI leading to drop in Minutes of Usage (MoU) and Average Revenue Per User (ARPU).

– Data & Voice Revenue: Non-voice revenues from both data and mobile VAS for the quarter remained flat Q-o-Q at Rs 148.2 crore (USD 27 million), which now contributes 36.7% of total revenue.

– Blended ARPU: Blended mobile ARPU for the quarter declined by 6% quarter on quarter to Rs 78.

– Data Card: SSTL’s data card subscriber base for the quarter up by 5.9% to 1.83 million subscribers. SSTL added 0.10 million data card subscribers during the quarter.

– Mobile subscriber base: SSTL’s mobile subscriber base increased by 0.3% quarter-on-quarter and reached 16.64 million customers as of September 30th, 2012.

Minutes of use: SSTL’s mobile subscribers’ MoU for Q3 2012 declined to 263 min vs. 281 min in Q22012. SSTL’s subscriber market share increased to 1.83% in Q3 2012 (vs. 1.77% in Q2 2012). The company has blamed TRAI for the decline in MoU. (Read above).

 – New launches: MTS launched “MTS mAd”, which allows subscribers to make free local calls by watching video ads on their mobile phones. MTS also launched new Smartphone; MTS MTag 353, under INR 6,000.

Financials

– Revenues: Consolidated revenues down by 3.3% Q-o-Q to Rs 404 crore (USD 73 million). Total wireless(Voice & Data) subscriber base for the quarter grew by 0.2% to 16.6 million.

– Net income: SSTL’s net income during the quarter improved by 58% Q-o-Q. The company posted a net loss of Rs 495.4 crore for Q3 2012.

– Operating Income Before Depreciation and Amortization (OIBDA): Consolidated OIBDA loss for the quarter stands at INR 354.1 crore (USD 63.5 mn). OIBDA margins improved 20 p.p. Q-o-Q.

– Capex: The CAPEX investments made by SSTL in India at the end of 30th September 2012 stands at Rs 6550 crore, which includes investment of Rs 15.8 crore made during Q3 2012.

– Accumulated losses of SSTL as of 30th September 2012 aggregated to Rs 10,100 crore.

– Debt:  Consolidated debt from banks and financial institutions at the end of 30th September 2012 stands at Rs 8064 crore.