Reliance Jio Q1 Net Profit Rises 12.5% YoY To INR 5,098 Cr, ARPU Up At INR 180.5

Continuing its growth momentum, the country’s largest telecom operator Reliance Jio Infocomm reported a 12.5% increase in its consolidated net profit to INR 5,098 Cr in the first quarter (Q1) of the financial year 2023-24 (FY24) from INR 4,530 Cr in the year-ago quarter. 

Sequentially, net profit rose 2.2% from INR 4,984 Cr in Q4 FY23. 

Revenue from operations of Jio Platforms, the parent company of the telco, grew 11.3% year-on-year (YoY) to INR 26,115 Cr in Q1 FY24. On a quarter-on-quarter basis, operating revenue grew 2.5% from INR 25,465 Cr. 

The company attributed the growth in operating revenue to subscriber gains in the telecom space and expansion of its digital services. New services such as managed video broadcast and cloud solutions also drove the consolidated revenue growth of Jio Platforms. 

In a statement, RIL Chairman Mukesh Ambani said, “Jio’s wide range of quality offerings at affordable price points has enabled strong growth in subscriber base, which reflects in the financial performance of the digital services business….”

Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 14.8% YoY to INR 13,116 Cr during the period under review due to growth in the number of users and average revenue per user (ARPU). 

Reliance Jio’s total subscriber base stood at 448.5 Mn at the end of June 2023, up 6.8% from 419.9 Mn at the end of Q1 FY23. 

Average revenue per user (ARPU) during the quarter rose 2.8% to INR 180.5 per month from INR 175.7 in Q1 FY23. On a QoQ basis, ARPU rose nearly 1% from INR 178.8.

The telco saw a net subscriber addition of 9.2 Mn in Q1 FY24, even as the monthly churn reduced to 1.8% during the quarter.

Jio said it has expanded its 5G services to cover 90% of India’s ‘census towns’. At the end of June, it accounted for more than 1.15 Lakh 5G sites.

“… Jio is on track to complete pan India 5G rollout before December 2023. The new JioBharat phone is another innovation by Jio combining network and device capabilities to help accelerate ‘2G-MUKT BHARAT’ vision and democratise (the) internet. With these investments, Jio is embarking on a journey to accelerate growth momentum across connectivity and digital platforms over the coming years,” Reliance Jio Infocomm Chairman Akash Ambani said.

The positive results come at a time when the telecom operator has been introducing a slew of new offerings to onboard more users. Last month, it unveiled a 4G-enabled feature phone priced at just INR 999, with an eye on swaying feature phone users away from competitors like Airtel and Vodafone-Idea. 

Last quarter, it also struck content partnership deals with premium platforms such as HBO and NBCUniversal to bring their films and shows on its OTT streaming platform JioCinema. The digital rights of the Indian Premier League (IPL) also brought in a good chunk of users as JioCinema clocked more than 1,300 Cr video views in the first five weeks of the cricket tournament. 

Meanwhile, the net profit of parent company, Reliance Industries Ltd (RIL), declined 5.9% YoY to INR 18,258 Cr in Q1 FY24. Operating revenue declined 5.3% to INR 2.1 Lakh Cr from INR 2.22 Lakh Cr in the corresponding quarter last year.

The results were released after market hours. Shares of RIL ended Friday’s session 3.19% lower at INR 2,536.20 on the BSE.