Jio Platforms Q3 net profit rises 11.6% on strong subscriber growth
Jio Platforms Ltd (JPL), which runs India’s largest mobile network operator Reliance Jio, on Friday reported an 11.6 per cent year-on-year (Y-o-Y) increase in net profit to Rs 5,445 crore for the third quarter of FY24 on robust subscriber growth. The net profit rose by 12 per cent and 12.53 per cent in Q2 and Q1, respectively.
On a sequential basis, the holding company for Jio and other digital businesses of the Reliance group, witnessed its net profit rise by 2.8 per cent.
Revenue from operations grew 11.3 per cent Y-o-Y to Rs 27,697 crore in Q3. Growth had stood at 10.7 per cent and 11.2 per cent in the previous two quarters. The operating revenue growth in Q3FY24 was driven by robust subscriber growth across mobility and homes, and the benefit of mix improvement in average revenue per user (ARPU), the company said.
Jio Platforms’ earnings before interest, taxes, depreciation, and amortisation (Ebitda) for the quarter was a record Rs 13,955 crore, up 11.5 per cent Y-o-Y.
Overall, Jio Platforms gained 11.2 million new subscribers in the latest quarter, slightly up from 11 million, and 9.2 million new subscribers gained in Q2 and Q1. Strong subscriber growth across mobility and wireline services and scale-up of the digital services platform drove JPL consolidated revenue and Ebitda growth, the company said.
This was the fifth consecutive quarter of growth for the company after subscribers had declined for three consecutive quarters. The company had earlier blamed SIM consolidation for the decline in its customer base.
The ARPU during Q3 stood at Rs 181.7, registering a 2 per cent change annually from Rs 178.2. However, it was at the same level as in Q2. And in Q1, it was at Rs 180.5. The company said better subscriber mix partially offset by unlimited data allowance on the 5G network improved ARPU. Jio did not announce any tariff hikes in the quarter.
About 90 million subscribers have migrated to Jio’s 5G network. “The Jio True 5G network now carries almost one-fourth of Jio’s mobility data traffic and the entire 5G data is now carried on Jio’s own 5G+4G combo core,” the company said.
Engagement on Jio’s network remained strong, with total data and voice traffic increasing by 31.5 per cent and 7.9 per cent annually, respectively.
Launched in 8 cities (Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kolkata, Mumbai and Pune) in September, JioAirFiber is now available in over 4,000 cities/ towns, with pan-India coverage expected in the first half of 2024, the company said. The service is expected to accelerate Jio’s home penetration from 10 million homes currently to over 100 million homes.
“Jio has accomplished the fastest rollout of 5G network witnessed anywhere in the world and is now available across India. JioAirFiber has seen strong initial demand and customer engagement, especially in underserved Tier-3 & Tier-4 towns and rural areas,” said Akash M Ambani, Chairman of Reliance Jio Infocomm.
The JioBharat phone now has over 45 per cent market share in the sub-Rs 1,000 segment, the company said. In Q1, Jio launched the Jio Bharat V2 phone priced at Rs 999, six years after it first unveiled a 4G-enabled feature phone. It now has 3 stock-keeping units with prices going up to Rs 2,500. The lowest-priced made-in-India internet-enabled phone with affordable and competitive monthly service plans targets 250 million feature phone users across the country.
First Published: Jan 19 2024 | 10:03 PM IST