Reliance Jio has posted a stunning financial result for the quarter ending in September: Profits have increased by massive 188% in the last 12 months.
But, surprisingly, their ARPU or Average Revenue per User is still lower than Airtel.
Here are the major highlights of the financial results from Jio..
Jio’s Profits Increase By 188% In 12 Months
Compared to profits of Rs 990 crore in the July-September quarter of 2019, Jio posted a massive increase of 188% in profits for the quarter in 2020.
Between July-September 2020, Jio churned out profits of Rs 2844 crore, which is 188% more than last year, and 13% more than last quarter.
As per the analysts, healthy increase in the data usage among Jio users propelled them to post such massive profits.
Compared to last quarter, Jio’s revenues increased by 5.5% to reach Rs 17,481 crore and operating profits increased to Rs 7701 crore, which is 10% more, compared to last quarter.
The company said in a statement, “The company has evaluated the implications of the Covid-19 pandemic and has determined that there is no significant impact on its financial position and performance,”
But Jio’s ARPU Is Still Lower Than Airtel
Despite record profits, the average revenue per user of Jio is still less, compared to arch-rivals Airtel.
For the July-September quarter, Jio was able to generate Rs 145 as average revenue from each user, which is their 4th straight increase in as many quarters.
But for the same started, Airtel generated average revenue per user of Rs 162, which is Rs 17 more than Jio.
This means that although Jio’s users are expanding and using more data/voice, they are still not using as much as Airtel’s users.
Jio was able to add 35 lakh new users, and this makes them 40 crore strong user-base across India.
We have already reported that Airtel and Vi can increase data tariff. Will Jio too raise their tariff?
We will keep you updated, as more details come in.
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