Jio Platforms Q3 Profit Up 11.6% on Subscriber Growth

New Delhi, Jan 19 (PTI) Jio Platforms on Friday reported an 11.6 per cent year-on-year rise in consolidated net profit for the December quarter at Rs 5,445 crore, buoyed by robust subscriber additions although the average revenue per user remained flat sequentially.

The gross revenue of Jio Platforms - which houses Reliance Industries' telecom and digital businesses - climbed 11.4 per cent to Rs 32,510 crore for the just-ended quarter. Sequentially, the profit was up 2.7 per cent, while gross revenue was three per cent higher than the September quarter.

"Operating revenue (net of GST) growth continued to be driven by robust subscriber growth across mobility and homes, and benefit of mix improvement in ARPU," according to a RIL release.

Jio's Average Revenue Per User (ARPU) increased two per cent year-on-year to Rs 181.7 with better subscriber mix, which was partially offset by unlimited data allowance on 5G network.

Compared sequentially, the ARPU - a key metrics for telecom companies - was flat over the September quarter.

Overall, while there was some increase in ARPU due to the subscriber mix, the fact that 5G services are being offered on a trial basis impacted these metrics.

"5G rollout accelerated the subscriber addition momentum and Jio continued to outpace competition with 11.2 million net additions in 3Q FY24. Monthly churn was 1.7 per cent," the RIL release said, adding that the total subscriber base stood at 471 million as on December 2023.

Jio said that the net additions were at a 10-quarter high.

Jio said engagement on its network remained strong, as total data and voice traffic increased 31.5 per cent and 7.9 per cent year-on-year, respectively.

Mukesh Ambani, Chairman and Managing Director of Reliance Industries noted that Jio has completed the fastest rollout in India of 5G services anywhere in the world.

"Every city, town, and village in the country is now equipped with high-speed digital connectivity, which will usher in a new era of unparalleled digital accessibility and technology-led growth. The strong uptake of the JioBharat phone and JioAirFiber services has resulted in continued expansion of Jio's subscriber base, contributing to the stellar growth numbers of the digital services business," he said.

In its presentation on Q3 financial and operational highlights, the company said Jio 5G availability is 3 times that of its nearest competitor.

Akash Ambani, Chairman of Reliance Jio Infocomm said Jio's ahead-of-the-curve investments on next-generation network, digital technologies and tailor-made products for all customer cohorts will ensure sustainable industry leading growth in coming years.

"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 3/4 towns and rural areas," he said.

About 90 million subscribers have migrated to Jio's 5G network, the company said, adding that Jio's fifth-generation network now carries almost one-fourth of Jio's mobility data traffic.

The budget-friendly JioBharat has over 45 per cent market share in the sub Rs 1,000 segment.

Among other updates, it said JioAirFiber (the 5G home broadband service) is now available in over 4,000 cities and towns, with pan-India coverage expected in the first half of calendar year 2024.

Jio further said that its enterprise market share gains have been consistent, and that nearly 50 per cent branches of top 10 banks in India run on the Jio network.

As per the presentation, Jio's digital services account for almost 20 per cent of the new deal wins, a variance to the situation earlier where network was the driving force and digital services were add ons.

"Early signs of demand and customer engagement have been encouraging. Content bundling is driving a 30 per cent higher per capita usage on JioAirFiber vs JioFiber," the said.

Meanwhile, Reliance Jio posted a 12.2 per cent rise in net profit for the fiscal's third quarter ended December 2023 at Rs 5,208 crore. Jio's revenue from operations increased 10.3 per cent to Rs 25,368 crore in Q3FY24 against Rs 22,998 crore in the year-ago period.

The net profit at Rs 5,208 crore in the just-ended quarter was 12.2 per cent higher on a year-on-year basis and nearly 3 per cent higher sequentially.

The results came in after market hours.