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Reliance Jio Q1 results beat estimates, net profit grows 20% to Rs 612 crore

The telecom operator saw its operating revenue grow 13.8 per cent quarter-on-quarter to Rs 8,109 crore during the quarter ended June 30, 2018 as opposed to Rs 7,128 crore in the March preceding quarter.

twitter-logo BusinessToday.In   New Delhi     Last Updated: July 27, 2018  | 20:18 IST
Reliance Jio Q1 results beat estimates, net profit grows 20% to Rs 612 crore

The Mukesh Ambani-led Reliance Jio exceeded analysts' expectations to post a net profit of Rs 612 crore in the June quarter of the current fiscal. The telecom disruptor registered a sequential increase of 19.9 per cent in net profit during the Q1 FY19 as compared to Rs 510 crore in the Q4 of financial year 2017-18. The telecom operator saw its operating revenue grow 13.8 per cent quarter-on-quarter to Rs 8,109 crore during the quarter ended June 30, 2018 as opposed to Rs 7,128 crore in the March preceding quarter.

For the quarter under review, Reliance Jio posted standalone EBITDA (Earnings Before Interest, Tax, Depreciation, And Amortisation) of Rs 3,147 crore and EBITDA margin of 38.8 per cent. This amounts to 16.8 per cent increase in standalone EBITDA which stood at Rs 2,694 crore in the Q4 FY18, and an increase of 101 basis points in EBITDA margin from 37.8 per cent during the same quarter.

As on June 30, 2018, Jio's subscriber base reached 215.3 million from 186.6 million on March 31, 2018, according to a statement by the company. The company has added 92 million subscribers in the past one year, and this number is increasing on account of its postpaid plans and JioPhone, the statement further said.

Also Read:Reliance Industries' Q1 net profit rises to Rs 9,459 crore, beats industry estimates

The average revenue per user (ARPU) for Reliance Jio during the June quarter of 2018-19 reached Rs 134.5 per subscriber per month, which is the lowest the company has seen since its inception. The waiver of Jio Prime membership fee and reduced postpaid tariffs were held responsible for the decline in ARPU.

Reliance Jio claimed that consumer activity on its network grew during the June quarter, with a user consuming 10.6GB data and 744 minutes of voice calling every month on an average. The data usage trend was attributed to rise in video comsumption which increased to 340 crore hours per month according to the statement.

"We doubled our customer base and most user metrics in the last 12 months. 215 million customers within 22 months of start is a record that no technology company has been able to achieve anywhere in the world. Jio has built an ecosystem for digital services and its affordable and simplified pricing strategy offers every Indian a chance to experience the "power of data". FTTH and Enterprise services with strong fibre backbone across the country would further establish Jio's leadership as a digital services provider," Reliance Industries Chairman and Managing Director Mukesh Ambani commented on the financial results.

He further added, "The continued strength in financial results of Jio despite competitive intensity reinforces the customer uptake of its services and its strong operating leverage. Jio is committed to offering most value to all of its stakeholders."

(Edited by Vivek Punj)

Also Read:Airtel escapes posting loss in Q1, but it's far from a safe zone

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