* Annual investment to fall below $250 mln in 2014-2015
* Sees unit breaking even on OIBDA level by mid-2015 at
MOSCOW, April 9 (Reuters) - Russian conglomerate Sistema
is holding back on major investment in its Indian
mobile unit over the next three years to concentrate on making
the operation profitable by mid-2015.
Sistema has reduced the scale of its Shyam TeleServices
business which now has licences for nine zones compared with the
22 it ran before they were revoked by the Indian Supreme court
Sistema will cut investment to less than $250 million a year
in 2014 and 2015 from $415 million this year and $561 million in
2012, including interest costs, the company said in a
"We need to first...make it profitable, and once we do that
we'll have a number of options in our hands," Sistema's Chief
Executive Mikhail Shamolin said during a conference call on
"We would not want to do any significant investment in this
business until we bring it to the break-even point," he added.
The company aims for the unit to break even on the OIBDA
(operating income before depreciation and amortisation) level by
the end of 2014 or first half of 2015, with six out of nine
regions seen breaking even in the middle of 2014, it said.
Sistema Shyam said earlier on Tuesday it had recorded a
full-year OIBDA loss of $271 million for 2012 on revenues of
Its London-listed shares were trading 0.54 percent higher by
1442 GMT at $18.6.