Shyam looking to achieve positive cash-flow in 2013 - Yevtushenkov
DAVOS. Jan 27 (Interfax) - Sistema Shyam TeleServices Ltd. (SSTL, a subsidiary of AFK Sistema ) plans to be generating a positive cash-flow starting in 2013, AFK Sistema's primary owner Vladimir Yevtushenkov told reporters on the sidelines of the Davos economic forum.
"The trend [business development in India] satisfies us completely," Yevtushenkov said. "We have exceeded expectations."
"We were more pessimistic when we were considering the business model. We have more than ten million subscribers, and we have brought the government on board as a shareholder, which increases protection for the company and its financial stability. We should achieve a positive cash-flow starting in 2013," Yevtushenkov said.
Asked if SSTL might be sold to Sistema subsidiary OJSC Mobile TeleSystems (MTS) , Yevtushenkov said no such plans are in the works. "We are not preparing to sell the Indian operator to MTS. That would be like moving [money] from one pocket to another. It is enough that MTS is actively consulting on the Indian project," he said.
SSTL earned $31.5 million in sales revenues in Q3 2010, while incurring net losses of $78.2 million.