Report Card: At Rs 3,651 crore, Reliance Jio profit rises 4% in Q1; Arpu flat

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July 24, 2021 4:45 AM

Arpu for the quarter at 138.4 was flat as the preceding quarter Arpu of Rs 138.2, but was in line with analyst expectations. The improving subscriber mix and better seasonality was offset by the impact of the second wave of Covid-19 during the quarter.

Jio's voice volume growth, however, slowed down during the quarter and grew 2.6% q-o-q at 10,60,000 minutes. In Q4FY21 the voice volumes were up 6% sequentially. Usage per customer at 818 minutes per month remained flat versus an increase of nearly 3.3% in Q4FY21.Jio's voice volume growth, however, slowed down during the quarter and grew 2.6% q-o-q at 10,60,000 minutes. In Q4FY21 the voice volumes were up 6% sequentially. Usage per customer at 818 minutes per month remained flat versus an increase of nearly 3.3% in Q4FY21.

Reliance Jio on Friday reported a good set of numbers for the April-June quarter, beating analyst estimates on financials as well as operating metrics, which surged sharply on unprecedented growth in data consumption. The company, however, missed net subscriber additions by a whisker at 14.3 million. It was estimated to have net adds of 15 million.

The net profit increased 4% sequentially to Rs 3,651 crore. Jio’s revenue during the quarter was up 3.7% to Rs 18,952 crore led by subscriber additions, while Ebitda was up 3.7% at Rs 8,892 crore on a flat Arpu (average revenue per user). The company’s Ebitda margins also remained flat at 46.9% during the quarter.

Arpu for the quarter at 138.4 was flat as the preceding quarter Arpu of Rs 138.2, but was in line with analyst expectations. The improving subscriber mix and better seasonality was offset by the impact of the second wave of Covid-19 during the quarter.

On other operating metrics, Jio’s data traffic surged sharply by nearly 22% sequentially to 2,03,00,000 on high data consumption. Data usage per customer per month was also up a sharp 17.3% quarter-on-quarter to 15.6 GB, which was a much faster growth compared to 3% in the preceding quarter.

Jio’s voice volume growth, however, slowed down during the quarter and grew 2.6% q-o-q at 10,60,000 minutes. In Q4FY21 the voice volumes were up 6% sequentially. Usage per customer at 818 minutes per month remained flat versus an increase of nearly 3.3% in Q4FY21.

Jio’s monthly churn continued to improve significantly three quarters in a row and is down to 0.95% which it attributed to customer focused initiatives to minimise Covid-led disruption. These included complimentary offers for JioPhone users, emergency data loan, WhatsApp recharge option, and Freedom Plans with no daily data limits.

In the preceding quarter, the churn was at 1.26% down from 1.63% in the December quarter.

Total customer gross addition stood at 27.6 million, which was below gross adds of 31.2 million in the March-ended quarter. The total subscriber base stood at 440.6 million, resulting in net additions of 14.3 million.

Commenting on the performance, Mukesh Ambani, chairman, Reliance Industries said, “Jio has posted yet another record quarterly performance with industry leading operating metrics. I am thankful to Jio’s family of loyal subscribers whose number has grown further during the quarter, consolidating its position as India’s No 1 provider of digital connectivity and services. They appreciate our continuing focus on raising the bar for superior service quality.”

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