Reliance Jio Is Now Earning Rs 167.6 From Every User; 1.1 Crore Users Left Jio In Last 90 Days
As compared to the a net profit of Rs 3,615 crore in Q3, Reliance Industries’ subsidiary Reliance Jio posted an in-line performance in the Q4 of FY22 with a net profit at Rs 4,173 crore.
Revenue, EBITDA, ARPU
Revenues jumped to Rs 20,901 crore from 19,347 crore in the last quarter. While the gross margin surpassed the 50-percent mark, the telecom giant crossed key landmarks with EBITDA over Rs 10,000 crore in terms of profitability.
At Rs 167.6, the Reliance Jio’s average revenue per user (ARPU) beat estimates with a healthy 10.6 percent QoQ growth. For the company, the tariff hike of 20% has kicked in for profitability improvement.
ARPU performance has also been aided by the subscriber mix. The tariff hike of 20% has also improved the profitability of the company.
The Waning Subscribers Base
Subscriber base for Jio, which was 440.6 million at the end of the first quarter of the fiscal shrank to 410.2 million at the end of March, 2022.
On this management said that “SIM consolidation post tariff hike resulting in net subscriber reduction. Recent trends indicate that SIM consolidation is abating as tariff hike impact is absorbed.”
During the fourth quarter, customer engagement grew for the telecom service provider with data traffic growth of 47.5 percent YoY to 24.6 Exabytes.
As compared to the last fiscal, the per capita data grew at 48.1 percent to 19.7 GB. Average voice calls grew 17.6 percent on a year-on-year basis to 968 minutes per month.
The management said that “JioFiber has captured the largest broadband service provider position within two years of its launch”. JioFiber clocks in a total of 6 million connected premises with an average five hours of daily endgame to on the set-top-box.
Much needed boost to the performance of Jio’s performance has been provided by the tariff hike in the telecom sector. However, it is the decline in the subscriber front which has been a concern for the analysts.
However, management’s positive commentary on abating of subscriber reduction with tariff hike being absorbed is expected to allay concerns on this front.