Sistema Shyam TeleServices Ltd (SSTL), which operates under the MTS brand, said its net loss widened by 63 per cent to Rs 666.4 crore for the first quarter ended March 31, 2011, even though its revenues grew three-fold.
"The decrease in margin is on account of increase in operational costs due to further scale up operations across all circles. Additionally, the circles of UP East, West and Gujarat, were launched in the latter part of 2010, hence the impact of their launch was felt in Q1 2011," SSTL, which has equity participation by Russia-based Sistema, the Russian government and the Shyam Group of India, said in a statement.
Revenues of the company grew by three-folds to Rs 236.2 crore during January-March quarter of FY'11, as against Rs 78.6 crore in the same period last year.
The revenue growth was driven by a 168 per cent increase in subscriber base over Q1'10, the statement added. "For the first time, our revenue growth during the quarter was faster than our growth in wireless subscribers.
This is a strong reflection of our continued efforts to target quality customers," Sistema Shyam Teleservices Ltd President and Chief Executive Officer Vsevolod Rozanov said.
The company had posted a net loss of Rs 408.1 crore in the first quarter of FY'10, the company said.
During the quarter, revenue growth was faster than the growth in total wireless (Voice and Data) subscriber base.
Blended mobile Average Revenue Per User (ARPU) for the quarter remained consistent at Rs 82, as against a declining trend in the market, the statement added.
