Reliance Jio’s net profit up 3.2% sequentially at ₹4881 crore in Q3 on better subscriber mix

• Reliance Jio reported a 3.2% growth in net profit sequentially to ₹4,881 crore in its Q3 FY23 earnings.
• Its revenue from operations grew 2.4% sequentially to ₹29,195 crore as compared to ₹28,506 crore in the previous quarter.
• Jio’s average revenue per user grew marginally by 0.56% sequentially and 17.5% on year.
• Growth in ARPU is slightly below analysts’ expectation who expected Jio’s average revenue per user (ARPU) to improve by a modest 1.8% sequentially at ₹179-180.
  

India’s largest telecom provider, Reliance Jio reported 3.2% growth in net profit sequentially at ₹4,881 crore in its December quarter earnings from ₹4,729 crore in the previous quarter. On a yearly basis, its profit grew nearly 28.6%.

Its revenue from operations grew 2.4% sequentially to ₹29,195 crore as compared to ₹28,506 crore in the previous quarter. On a year-on-year basis, it saw an increase of nearly 20.8%.

The oil to telecom conglomerate attributed the growth to strong growth in customers and data consumption.

“Jio delivered record revenues and EBITDA driven by strong momentum in customer growth and data consumption,” said Mukesh Ambani, chairman and MD at Reliance Industries.

This quarter RIL launched True 5G services, which is now available in 134 cities and towns in India.

Meanwhile, Jio’s average revenue per user grew marginally by 0.56% sequentially and 17.5% on year. The company said that ARPU increased sequentially due to better subscriber mix.

Growth in ARPU is slightly below analysts’ expectation who expected Jio’s average revenue per user (ARPU) to improve by a modest 1.8% sequentially at ₹179-180.

Further, Reliance Jio added less number of subscribers in the December quarter as compared to the previous quarter. The telecom major added 5.3 million net subscribers in Q3 as compared to 7.7 million in Q2.

With this, RJio’s total customer base stands at 432.9 million, which has grown 2.8% on a yearly basis.

“Sustained subscriber additions and higher ARPU drive revenue and EBITDA growth for the connectivity business. In addition, higher realizations from digital services drives JPL consolidated revenue growth,” said the company in a press release.

Outlook for the telecom business
Jio targets to complete its pan India 5G rollout by December 2023.

RJio highlights that during FIFA World Cup 2022 it witnessed one of the highest viewership on JioCinema which achieved a total viewership of over 114 million across the 64 matches.

Akash Ambani, chairman of Reliance Jio Infocomm, said that, “Jio is undertaking the most ambitious and fastest ever 5G rollout plan for any country of our size. Within three months of launch, Jio True5G is now available across 134 cities and would be available across India by December 2023.”

“In addition, Jio will connect over 100 million premises with JioFiber and JioAirFiber offering unparalleled digital experiences. We will also empower small merchants and businesses with cutting-edge, plug-and-play solutions delivered from the cloud,” he added.

Ahead of its earnings release, Reliance Industries closed 1.18% at ₹2,443 per share.


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