Jio Platforms’ net profit rose 14.76% in the quarter ended September from the previous quarter on the back of the sharpest sequential rise seen in its average revenue per user (Arpu) in the past 10 quarters. Its subscriber base, however, fell by 10.9 million on account of SIM consolidation after the telco undertook tariff hikes during the quarter.
Jio Platforms’ consolidated net profit rose to Rs 6,539 crore in Q2 from Rs 5,698 crore in the April-June period and Rs 5,299 crore in Q2 of the last fiscal, the company said on Monday.
The Reliance Industries (RIL) subsidiary posted a 7.67% quarter-on-quarter increase in revenue from operations to Rs 31, 709 crore against Rs 29,449 crore in the previous quarter, also led by the increase in Arpu and scale-up of home and digital services businesses.
Reliance Jio Infocomm, the telecom unit of Jio Platforms, lost 10.9 million users in the September quarter, compared to an addition of 8 million subscribers as on June 31. Jio’s total subscriber base was 478.8 million as on September 30, while the monthly churn increased to 2.8%.
Quarterly Arpu, a crucial performance indicator, improved to Rs 195.1 from Rs 181.7 in the first quarter of FY25, slightly above the Street estimates, due to the partial impact of the tariff hikes and better subscriber mix, the company said, adding that the full impact of the tariff hike will flow through in the next 2-3 quarters.
The telco said 148 million subscribers have migrated to 5G as on September 30, and JioAirFiber user base was 2.8 million homes. The company has set itself a target to add 1 million homes every month through its FWA and fibre home connectivity offering. It added 1.8 million homes in Q2.
The per capita data usage rose to 31 GB per month per user compared to 30.3 GB in the previous quarter. This, the management said during an earnings webcast, was due to the uptake of 5G among Jio’s subscribers, and acceleration in home broadband footprint.
“Growth in digital services was led by increased Arpu and improving customer engagement metrics, reflecting the strong value proposition of our services. The home broadband segment is witnessing accelerated momentum on the back of our unique industry-leading JioAirFiber offering,” RIL chairman and MD Mukesh Ambani said.
Earnings before interest, tax, depreciation and amortisation (Ebitda) rose 8.83% on-quarter at Rs 15,931 crore (Q1: Rs 14, 638 crore) on account of strong revenue growth. Ebitda margin was up 50 bps on-quarter, but down 10 bps y-o-y.
Reliance Jio’s standalone net profit in the June quarter rose 14.44% on-quarter at Rs 6,231 crore on account of strong revenue growth. Quarterly telecom business revenue at Rs 28,338 crore was 7.02% higher than the previous quarter.
“Right from inception, Jio has focused on deep-tech innovation to create customer and shareholder value. The ongoing transformation created by Jio True5G and JioAirFiber in India’s digital landscape is a testament to this approach. AI is creating the next runway for this transformation, and Jio is committed to developing the world’s best AI ecosystem in India, for all Indians,” Reliance Jio Infocomm chairman Akash Ambani said.
The total wireless data consumption rose to 45 billion GB in Q2FY25 compared to 44.1 billion GB in Q1FY24. Total voice consumption flat sequentially at 1.42 trillion minutes.
From: financialexpress
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