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Jio Platforms Ltd (JPL), which runs India’s largest mobile network operator Reliance Jio, on Tuesday reported a sharp 23.4 per cent year-on-year (Y-o-Y) increase in net profit to Rs 6,539 crore for the second quarter (July-September) of FY25 as a result of higher telecom tariffs imposed in early July. On a sequential basis, the holding company for Jio and other digital businesses of the Reliance group witnessed its net profit rise by 14.7 per cent.
In Q2, Jio’s Y-o-Y net profit growth rose significantly from the 11.7 per cent and 12 per cent registered in the previous two quarters. As a result, the telco’s average revenue per user (ARPU) in Q2 rose to Rs 191.5, after remaining unchanged at Rs 181.7 for four straight months. Calculated yearly, ARPU was higher by 7.4 per cent in Q2. The company said a partial follow-through of the tariff hike and a better subscriber mix ensured this. “The full impact of the tariff hike will flow through in the next 2-3 quarters,” it said.
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In Q2, the revenue from operations grew 18 per cent Y-o-Y to Rs 31,709 crore in Q2 FY25. Revenue had grown by 12.8 per cent in the preceding quarter. The operating revenue growth was primarily driven by the partial impact of the tariff hike and scale-up of home and digital services businesses, the company said.
Jio Platforms’ earnings before interest, taxes, depreciation, and amortisation (Ebitda) for the quarter was a record Rs 15,931 crore, up 17.8 per cent Y-o-Y.
Subscriber loss
Jio said 148 million subscribers have migrated to Jio’s 5G network and are accounting for 34 per cent of Jio’s wireless data traffic, up from 31 per cent and 28 per cent in the preceding quarters. The telco stressed its 5G users now represent the largest 5G subscriber base for any telecom operator outside China.
However, Jio Platforms lost 10.9 million subscribers during the latest quarter, after seven straight quarters of gaining users. The telco had 478.8 million subscribers at Q2-end, down from 489.7 million at the end of Q1. The company admitted a limited amount of SIM consolidation has been observed after the tariff hike, offsetting continued strength in gross additions in Q2, while the monthly churn increased to 2.8 per cent.
However, even before the tariff hike came into effect, Jio’s subscriber additions had been waning. It had gained 7.9 million, 10.9 million, and 11 million new subscribers in the preceding three quarters.
Engagement on the network remained strong, with total data and voice traffic increasing by 24 per cent and 6.4 per cent annually, respectively. In Q1, the company said Jio has become the largest operator globally in terms of data traffic. Per capita data consumption by Jio users rose to 31 GB per month, or more than 1 GB per day.
Jio announced it is now the fastest-growing fixed wireless operator globally, with over 2.8 million JioAirFiber connections. Launched initially in eight cities in September last year, JioAirFiber is now available in over 5,900 cities. The service is expected to accelerate Jio’s home penetration to over 100 million homes. Jio has recorded its highest-ever quarterly home connect at over 1.1 million.
“Right from inception, Jio has focused on deep tech innovation to create customer and shareholder value. The ongoing transformation created by Jio True5G and JioAirFiber in India’s digital landscape is a testament to this approach,” said Akash M Ambani, chairman of Reliance Jio Infocomm.
First Published: Oct 14 2024 | 7:58 PM IST