Jio Platforms Q1 profit increases 12% to Rs 5,698 crore

Jio Platforms Q1 Net Profit jumps

Jio Platforms Ltd, the digital services unit of India’s largest conglomerate and parent of Reliance Jio Infocomm Ltd, reported an 11.7% increase in quarterly profit to Rs 5,698 crore from a year earlier.

The company’s revenue from operations rose 12.8 percent to Rs 29,449 crore in the June quarter from Rs 26,115 crore a year earlier, driven by strong subscriber gains across mobility and home services.

EBITDA increased 11.6 percent to Rs 14,638 crore in the June quarter from Rs 13,116 crore a year ago. Finance costs increased 13.5% to Rs 1,115 crore due to higher leverage.

Reliance Jio Infocomm, India’s largest telecom operator by users, reported a quarterly profit of Rs 5,445 crore, up 12 percent from Rs 4,863 crore in the same quarter a year ago.

Jio’s ARPU rose 0.7 per cent to Rs 181.7 from a year earlier, boosted by a favourable subscriber mix but partially offset by the rising share of promotional 5G traffic being offered to subscribers.

Jio continues to lead the industry and gain subscriber share with 8 million net additions in the fiscal first quarter. The telco’s monthly churn was 1.7 percent, according to an official statement.

The telecom operator’s subscriber base in the quarter reached 489.7 million, an increase of 9.2 percent from a year earlier.

Jio’s customer engagement levels continued to remain strong with total data traffic increasing by 32.8 percent to 44.1 billion GB, and voice traffic increasing 6 percent from a year earlier to 1.42 trillion minutes.

The company said it is the largest 5G operator outside China, with about 130 million 5G subscribers accounting for over 31 percent of wireless data traffic. The entire 5G data is being carried on Jio’s own 5G+4G combo core.

“Our new prepaid plans would foster industry innovation towards 5G and AI and drive sustainable growth,” said Akash M Ambani, Chairman of Reliance Jio Infocomm.

“The digital services business registered an impressive financial performance year-on-year, continuing its positive growth momentum. Jio’s True 5G network, covering ~85 percent of India’s 5G capacity, continues to attract users, while the fixed broadband offerings are witnessing increasing consumer traction both in homes and enterprises,” said Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited.

“This is further accelerating the digital revolution reshaping communications, analytics and computing, media and entertainment and commerce in India. Jio is committed to providing the best-quality state-of-the-art network at the most affordable prices globally,” Ambani added.

Jio’s 5G Fixed Wireless Access (FWA) service, JioAirFiber, continues to see strong uptake and engagement across India, owing to its unique proposition as an entertainment-first product bundled with world-class broadband connectivity.

Jio recorded its highest-ever quarterly home connects at over 1.1 million due to this strong demand. The telco is using network slicing on a Standalone 5G network and point-to-multipoint deployment to transform fixed broadband infrastructure in India, it said.

Jio recently announced its new unlimited plans effective July 3, 2024. These new plans imply an increase of 13 percent-25 percent vs previous plans.

Disclosure: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.