Reliance Jio Q2 net profit soars to ₹2,844 crore; Arpu rises to ₹1452 min read . Updated: 30 Oct 2020, 09:57 PM IST
The RIL telecom unit's revenue from operations for the September quarter rose to ₹17,481 crore from ₹13,130 crore in the same period last year.
Reliance Jio Infocomm Ltd on Friday reported a net profit of ₹2,844 crore for the September quarter versus ₹990 crore a year ago driven by higher operating revenue, addition to subscriber base and lower net finance cost.
The Reliance Industries Ltd (RIL) telecom subsidiary’s subscriber base increased to 405.6 million from 398.3 million as of 30 June. Jio is India’s largest telecom operator by market share. The company is the “first operator outside China to have 400 million subscribers in a single-country market," the Mukesh Ambani company said in a statement.
The average revenue per user (Arpu) rose to ₹145 from ₹140 in the June quarter and ₹120 a year ago, as work from home drove data consumption higher. Total wireless data traffic rose 20% year-on-year (y-o-y) to 1,442 crore gigabyte during the quarter.
Arpu is the total revenue of the operator divided by the number of users or connections on its network.
Reliance Jio's revenue from operations for the September quarter rose to ₹17,481 crore from ₹13,130 crore in the same period last year.
“Wireless gross addition showed a strong sequential increase to 27.2 million as lockdown restrictions began to ease during the quarter," RIL said.
Jio’s monthly churn rate for wireless subscribers increased to 1.69% "with follow through impact of covid-19 on SIM card consolidation and recharge cycle of migrant population".
“Customer engagement continued to be robust with average wireless data consumption per user per month at 12.0 GB and average voice consumption at 776 minutes per user per month, with an increasing usage of application-based voice on data networks," RIL said.
Jio Platforms Ltd has raised ₹1.52 trillion from thirteen investors--Facebook, Google, Silver Lake, Vista Equity Partners, General Atlantic, KKR, ADIA, Mubadala, TPG, L Catterton, Public Investment Fund of Saudi Arabia, Intel Capital and Qualcomm.
“With large capital raise in last six months across Jio and retail business, we have welcomed several strategic and financial investors into Reliance family," RIL chairman Mukesh Ambani said.
Barring Google all the said investments have come in, RIL said. Once the investments are complete, RILwill hold 66.48% equity stake in Jio Platforms, the digital services subsidiary of RIL, on a fully diluted basis.
Jio Platforms and US-based Qualcomm Technologies, Inc will develop 5G solutions to fast track the roll out of indigenous 5G network infrastructure and services in India.
“Qualcomm and Jio Platforms along with its wholly-owned subsidiary Radisys Corporation announced expanded efforts to develop open and interoperable interface compliant architecture based 5G solutions with a virtualized RAN," RIL said in the statement.