Sistema Shyam losses soar to $106m

Dylan Bushell-Embling
16 Sep 2010


New Indian player Sistema Shyam Teleservices has posted a nearly fivefold increase in second quarter losses, despite a threefold rise in revenue.


The operator, a joint venture between Russia's Sistema and India's Shyam Group, reported a loss of $106.6 million for the quarter, compared to its loss of $22.9 million in Q2 last year.


But revenue grew to $23.1 million from $7.2 million over the same period, India's Business Standardreported


The company, which is aiming to break even by mid-2013, operates CDMA services under the MTS brand.


Since its launch in March last year, the company has attracted more than 6 million customers across 12 telecom circles so far.


Sistema Shyam is 73.7% owned by Sistema – close to the maximum a foreign company can legally hold in an Indian operator.


The Russian government recently agreed to by 20% of the operator for $600 million, in a deal valuing the company at $3 billion.


Dylan Bushell-Embling

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