Reliance Jio Q1 Results: Profit Rises 4%, ARPU At All-Time High
Reliance Jio's Q1 profit rose as it realised the full benefit of the past tariff hikes on customers with longer-term plans.
Reliance Jio Infocomm Ltd.’s first-quarter profit rose and its average revenue per user touched an all-time high.
Net profit of the Reliance Industries Ltd.-owned telecom operator increased 3.8% sequentially to Rs 4,335 crore in the quarter ended June, according to a statement.
Reliance Jio Q1 FY23 Highlights (QoQ)
Revenue rose 4.6% to Rs 21,873 crore.
Operating profit increased 4.3% to Rs 10,964 crore.
Ebitda margin contracted to 50.13% from 50.28% as of March.
Average revenue per user of the nation’s largest carrier by active subscribers rose to Rs 175.7 a month—an all-time high. That compares with Rs 167.1 in the preceding three months and the forecast of Rs 174.
The improvement in ARPU—the amount an operator earns per subscriber per month—came on the back of a better mix of subscribers and tariff hikes.
Jio net added 97 lakh subscribers in the quarter ended June. Reliance Jio’s total customer base stood at 41.99 crore as of June compared with 41.02 crore as of March.
It saw a rise in net customers during the quarter on account of SIM card consolidation as low-paying customers continue to drop off on higher plan prices. The telecom operator lost customers in the previous three quarters.
The telecom operator's average data and voice consumption per user per month increased to 20.8 GB and 1,001 minutes, respectively. Total data traffic was 27.2% up at 2,590 crore GB, and total voice traffic rose 17.2% at 1,25,000 crore minutes.
India's telecom operators have focused on increasing tariffs and weeding out low-paying or inactive users to boost average revenue per user. For Jio, past tariff hikes in some of the long-term plans would have come into effect in the April-June quarter.