Hike in tariffs undertaken in December 2019 reflected in the jump in average revenue per user (Arpu) which stood at Rs 140.3, higher than analyst estimates of Rs 137.
Reliance Jio on Thursday posted a growth of 8.1% in the net profit at Rs 2,520 crore in the April-June quarter, slightly lower than analysts expectations. The company’s revenues during the quarter were up 11.6% at Rs 16,557 crore compared to the preceding quarter on the back of increasing subscriber addition and full impact of tariff hike undertaken in December, 2019. The Ebitda was up 17.4% at Rs 7,281 crore, while Ebitda margin came in at 44% improving 220 basis points during the quarter due to operating leverage and cost efficiencies.
The company’s Ebitda and revenue were in line with analyst estimates for the quarter.
Hike in tariffs undertaken in December 2019 reflected in the jump in average revenue per user (Arpu) which stood at Rs 140.3, higher than analyst estimates of Rs 137. However, the Arpu came in significantly lower compared to Bharti Airtel’s Rs 157.
On other operating metrics, Jio continues to perform on expected lines. Its data traffic at 1,42,00,000 million MB was up 10.6% compared to the preceding quarter. Data usage per customer, per month, was also up 7% at 12.1 GB against 11.3 GB in the preceding quarter. Bharti continues to beat Jio during the quarter on the usage per customer front. This is basically due to the low paying JioPhone customers the company has.
Anshuman Thakur, head (planning and strategy), Reliance Jio said, “The impact of Covid-19 was felt on customer addition, but is picking up pace again. Combination of tariff hikes taken in December and enabling customers to recharge has reflected in the Arpu improvement during the quarter”.
Jio’s voice volume at 8,89,440 million minutes registered an increase of 1.5% compared to the preceding quarter. Usage per customer at 756 minutes, per month registered a decline of 2% sequentially.
Jio’s monthly churn remains the lowest in the industry at 0.46% per month. The company continued its strong subscriber growth trend with gross adds at 15.1 million and net additions of nearly 10 million and total subscriber base at 398.3 million.
Jio Platforms Limited has raised Rs 152,056 crore across thirteen investors which includes Facebook, Google, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG, L Catterton, Public Investment Fund of Saudi Arabia, Intel Capital and Qualcomm Ventures. Of the total investment, Jio Platforms Limited has already received Rs 115,694 crore as subscription amount from ten investors. The company has decided to retain Rs 22,981 crore at Jio Platforms to drive future growth.
Commenting on the performance, Mukesh Ambani, chairman, Reliance Industries said, “Jio started with a vision of connecting everything by building a robust and secure wireless and digital network and extending the benefits of digital connectivity to everyone in India. Thirteen investors, which include the largest technology companies and investors globally, now share a common vision with us. Jio Platforms Limited with partnerships across promising Indian start-ups and globally renowned technology companies is set to drive the next leg of hyper growth for digital businesses. Our growth strategy is aimed at meeting the needs of all the 1.3 billion Indians. We remain focused on playing a leading role India’s transformation into a Digital Society”.