Up 2.5% to Rs 5,583 crore, Jio’s profit was unchanged at Rs 181.7

The parent company of telecom provider Reliance Jio, Jio Platforms, said on Monday that its net profit for the January–March quarter increased by 2.5% on a quarter-over-quarter (QoQ) basis to Rs 5,583 crore.

The period’s total operating revenue increased 4.2% QoQ to Rs 28,871 crore as a result of an increase in the number of subscribers and increases in voice and data use.

In the absence of limitless 5G services and rate increases, the average monthly revenue per user (Arpu) remained constant at Rs 181.7. According to the firm, an increase in the variety of promotional 5G traffic—which is provided to customers without any additional charges—partially offset the benefits of improved subscriber mix in the Arpu growth.

The figures mostly matched the experts’ projections.

rise in net profit was 2.5%, somewhat less than the 2.8% rise in the previous quarter. However, compared to the 3.1% sequential rise in the prior quarter, revenue growth was stronger in the January–March quarter.

Reliance Jio’s income from operations increased 2.3% QoQ to Rs 25,959 crore during the quarter, while its net profit increased 2.5% QoQ to Rs 5,337 crore on a stand-alone basis.

In comparison to the 11.2 million new users acquired in the previous quarter, Reliance Jio added 10.9 million new users during the current quarter. The overall number of subscribers increased from 470.9 million at the end of December to 481.8 million at the conclusion of the March quarter.

A major factor in the rise was the need for 2G consumers to switch to JioBharat 4G phones. In the sub-Rs 1,000 phone market, JioBharat has a market share of more than 45%.

According to the company’s earnings announcement, Jio outperformed the competition and added 10.9 million net users during the quarter, demonstrating network leadership’s ability to maintain subscriber growth.

Reliance Industries’ chairman and managing director, Mukesh Ambani, said, “Performance of the digital services segment has been boosted by accelerated expansion of subscriber base, supported by both mobility and fixed wireless services.”

With more than 108 million actual 5G users, Jio is undoubtedly leading the 5G revolution in India. Jio has shown its capacity to fortify the country’s digital infrastructure by moving its 2G consumers to smartphones and spearheading the endeavor to create AI-driven solutions, Ambani said.

With 108 million 5G users, Jio is now the only non-Chinese firm with the greatest user base. According to the firm, 28% of its wireless data traffic is being carried on its 5G network, with all 5G data being carried on Jio’s proprietary 5G+4G combo core.

Consolidated operating profit, or Ebitda, increased 2.9% QoQ to Rs 14,360 crore as a result of sales growth. However, the EBITDA margin decreased to 49.7% after declining by 70 basis points in a row. This is due to a number of factors, including increased spectrum and license fees, marketing and distribution costs in the context of growing 5G promotions, and increased network operational expenditures.

To 40.9 billion GB, the total data traffic increased 7.3% QoQ. The Indian Premier League (IPL), which began in March, a large number of fiber internet connections, and the addition of AirFiber customers during the quarter are all responsible for the rise. According to the firm, JioAirFiber is already accessible in more than 5,900 cities and towns, and nationwide coverage is anticipated shortly.

Subscribers of AirFiber use an average of 13 GB of data per day, which is 30% more than JioFiber users. According to the business, Jio’s innovative point-to-multi-point rollout and network slicing on standalone 5G networks are revolutionizing India’s fixed broadband infrastructure.

“Jio keeps up its network leadership and provides various client groups with cutting-edge digital solutions. According to Reliance Jio chairman Akash M. Ambani, “this is driving consistent outperformance in terms of subscriber additions and engagement levels.”

“Jio will continue to grow at an industry-leading rate as long as the company ramps up digital services and its JioAirFiber subscriber base continues to accelerate,” Akash Ambani said.

At 28.7 GB per month, the average data usage per user increased 5.1% consecutively.

Throughout the quarter, the network’s overall voice use increased 5% QoQ to 1.41 trillion minutes. From 982 minutes in the previous quarter to 1,008 minutes this month, the average voice use per user increased.