Reliance Jio Q1 results 5G home broadbarnd Arpu growth | Company Business News

Reliance Jio reported a surge in average revenue per user for the April-June quarter, boosted by strong subscriber growth across mobile and home broadband and increased data consumption on the network.

Jio Platforms Ltd, which houses Reliance Industries Ltd’s telecom and digital services business, reported a 1.2% sequential growth in consolidated net profit to ₹7,110 crore for the June quarter. Consolidated revenue from operations rose 3.07% sequentially to ₹35,032 crore.

On a year-on-year basis, Jio Platforms clocked a 19% revenue growth and a 25% increase in net profit for the quarter ended June.

Reliance Jio is India’s largest telecom operator by market share and a subsidiary of Jio Platforms, accounting for most of its business. 

Jio’s steady growth comes at a time when telecom operators are looking at ways to monetise 5G services and boost user engagement. Jio continues to eat into the subscriber market share of Vodafone Idea Ltd, which is looking for another financial relief from the government to stay afloat.

Reliance Jio’s revenue from operations on a standalone basis grew 17% year-on-year and 2.9% quarter-on-quarter to ₹30,882 crore, in-line with average estimates of ₹30,900 crore by three brokerage houses. Net profit rose 23.2% on-year and 1% sequentially to ₹6,711 crore.

During the first quarter, Jio’s 5G subscribers crossed 200 million and 20 million home broadband connections. “Jio AirFiber is now the largest FWA (fixed wireless access) service provider in the world, with a base of 7.4 million subscribers,” said Mukesh Ambani, chairman and managing director of Reliance Industries.

5G, broadband milestones

At the end of June, Jio had 213 million 5G subscribers, up from 191 million in the preceding January-March quarter. Monthly average revenue per user (Arpu) rose 1.3% sequentially and 14.9% on-year to ₹208.8, helped by tariff hikes, according to the company.

Reliance Jio net added 9.9 million subscribers during the June quarter, taking its subscriber base to 498.1 million. In the preceding quarter, the company had 6.1 million subscribers. Monthly user churn was 1.8%.

Jio’s earnings before interest, taxes, depreciation, and amortization (ebitda) rose 24% on-year and 6.6% sequentially to ₹18,135 crore in the June quarter. Ebitda margin rose 1.7 percentage points sequentially to 51.8%. 

According to Jio’s investor presentation, the company is also seeing strong traction in its cloud gaming platform Jio Games, its cloud storage platform JioAICloud, and JioPC, its virtual desktop.

Jio said it is ready to take its 5G stack with cloud native core network to global markets.

Total data traffic rose 24% on-year and 11.9% sequentially to 54.7 billion GB in the June quarter, helped by the growth of the company’s fibre broadband and AirFiber users.

Monthly average data consumption per user on the company’s network was 37 GB, up from 33.6 GB in the preceding three months and 30.3 GB in the corresponding year-ago period.